Lesson Plan

• Describe the elements that make up primary income (compensation of employees and investment income).
• Explain how primary‑income receipts and payments are recorded in the current account and how the net figure is calculated.
• Analyse the macro‑economic implications of primary‑income surpluses and deficits.
• Calculate net primary income from given data.
• Evaluate how changes in wages, dividends or interest affect the overall current‑account balance.

• Projector and screen for slides
• Whiteboard and markers
• Printed worksheet with primary‑income tables
• Calculators for students
• Handout summarising key formulas and examples
• Laptop for teacher demonstrations

Begin with a quick poll: how many students have family members working abroad or receive overseas dividends? Review the broader current‑account concept and state that today’s focus is the primary‑income component. Explain that by the end of the lesson they will identify receipts and payments, calculate net primary income, and discuss its macro‑economic significance.

1. Do‑now (5’) – Short quiz on the four components of the current account to activate prior knowledge.
2. Teacher input (10’) – Define primary income, differentiate compensation of employees and investment income, and show real‑world examples via slides.
3. Guided practice (12’) – Work through the illustrative calculation together, completing a table on the board.
4. Group activity (15’) – In pairs, analyse a new set of primary‑income data, compute the net figure and interpret surplus vs. deficit.
5. Concept check (5’) – Exit ticket: one‑sentence definition of primary income and why it matters.
6. Summary & homework briefing (3’) – Recap key points and assign a worksheet for further practice.

Summarise that primary income captures factor earnings across borders and that its net balance influences the overall current‑account position. Ask students to write one key takeaway on a sticky note as an exit ticket. For homework, complete the worksheet that requires calculating net primary income for a different country scenario.