Public Finance and International Organizations

Grade 12 · Economics

Semester 2 | Period 5 | Week 25

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Subject: Economics

Semester: 2

Period: 5

Week: 25

School Name:

Teacher’s Name:

Subject: Economics

Grade Level: Grade 12

Week & Period: Week 25, Period V

Date:

Topic: Public Finance and International Organizations
Sub-topic: Meaning of Public Finance and Fiscal Policy

Instructional Objectives

By the end of this lesson, learners should be able to:

  1. Define public finance and explain its relevance to economic development.
  2. Identify the objectives of fiscal policy.
  3. Explain the sources of government revenue with emphasis on taxation.
  4. Discuss the economic effects of taxation on the population.

 

Instructional Materials

  • Tax policy documents
  • Revenue charts
  • Fiscal flow diagrams
  • Whiteboard and markers

 

Previous Knowledge

Learners have prior knowledge of national income and its sources.

A – Anticipation (Engagement/Warm-Up)

Motivational Set (5 minutes) Ask:

“Have you ever seen VAT on a receipt? Why do you think the government collects such taxes?” Lead discussion into the purpose and management of public revenue.

 

B – Building Knowledge (Development)

Teacher’s Explanation (20 minutes)

Meaning of Public Finance:

  • Refers to the study of government revenue and expenditure.
  • Concerned with how the government manages money to fund public services.

Fiscal Policy:

  • A tool used by the government to influence the economy using taxation and public spending.

Objectives of Fiscal Policy:

  1. Promote economic stability
  2. Control inflation and deflation
  3. Promote employment
  4. Encourage economic growth
  5. Reduce income inequality

Sources of Government Revenue:

  1. Taxation (main source) – both direct and indirect
  2. Licenses and permits
  3. Fines and penalties
  4. Borrowing (internal and external)
  5. Profits from government-owned enterprises

Economic Effects of Taxation:

  • Affects consumer spending
  • Influences investment
  • Can reduce or increase income inequality
  • Can affect production and resource allocation

 

Class Activity (10 minutes)

Divide learners into small groups. Assign each group a revenue source. Ask them to describe how it supports the economy and one problem associated with it. Each group presents their findings.

 

C – Consolidation (Wrap-Up and Evaluation)

Teacher Summary (3 minutes) Summarize the importance of public finance in national development, emphasizing taxation as the backbone of government revenue.

 

Assessment (7 minutes)

Multiple Choice:

  1. Which of the following is a major source of government revenue? A. Donations from individuals
    Foreign aid only
    C. Taxation
    D. Social media
  2. A key objective of fiscal policy is: A. Encouraging corruption
    Increasing inflation
    C. Promoting economic stability
    D. Avoiding income

Short Answer: 3. Define public finance. 4. Mention two objectives of fiscal policy.

 

Assignment

Research and write a brief note on the types of taxes used in Liberia and their roles in the economy.

 

Teacher’s Reflection (Questions Only)

  1. Did students understand the distinction between fiscal policy and public finance?
  2. Were learners able to connect taxation to government services?
  3. Did group presentations promote clarity and peer learning?
  4. Were all learning objectives covered and assessed?
  5. What improvements are needed in explaining taxation concepts?