ECONOMICS LESSON NOTE
SUBJECT:
Economics
CLASS:
SS1
TERM:
First Term
WEEK:
Week 4
TOPIC:
Factors of Production
PERIOD:
40 Minutes
LESSON OBJECTIVES
At the end of the lesson, students should be able to:
- Define factors of production.
- Identify the main factors of production.
- Explain the characteristics of each factor of production.
- State the rewards of each factor.
- Give examples of each factor of production in real life.
ENTRY BEHAVIOUR
Students are familiar with farming, trading, and working activities in their environment.
TEACHING AND LEARNING MATERIALS
- Whiteboard
- Marker/Chalk
- Economics textbook
- Charts showing production activities
- Pictures of land, labour, capital and entrepreneurs
REFERENCE BOOKS
- Comprehensive Economics for Senior Secondary Schools
- Essential Economics by C.E. Ande
- New System Economics
CONTENT
FACTORS OF PRODUCTION
Factors of production are the resources used in the production of goods and services.
They are the inputs that combine to produce output in an economy.
MAIN FACTORS OF PRODUCTION
There are four main factors of production:
- Land
- Labour
- Capital
- Entrepreneur
1. LAND
Land refers to all natural resources used in production.
Examples:
- Soil
- Rivers
- Minerals
- Forests
- Oil and gas
Characteristics of Land:
- Fixed in supply
- Free gift of nature
- Has no cost of production
- Immobile
- Can be improved through human effort
Reward of Land:
Rent
2. LABOUR
Labour refers to all human effort (physical and mental) used in production.
Examples:
- Teachers
- Farmers
- Doctors
- Engineers
Characteristics of Labour:
- It is mobile
- It is perishable (cannot be stored)
- It requires skill and training
- It is human effort
Reward of Labour:
Wages or salaries
3. CAPITAL
Capital refers to man-made goods used in production of other goods and services.
Examples:
- Machines
- Tools
- Factories
- Money used for production
Characteristics of Capital:
- It is man-made
- It is produced for further production
- It can be increased through savings
- It wears out over time (depreciation)
Reward of Capital:
Interest
4. ENTREPRENEUR
The entrepreneur is the person who organizes other factors of production to produce goods and services.
He takes risks and makes decisions.
Functions of Entrepreneur:
- Organizes production
- Bears risks
- Makes business decisions
- Combines land, labour and capital
Characteristics of Entrepreneur:
- Risk bearer
- Decision maker
- Innovator
- Organizer
Reward of Entrepreneur:
Profit
FACTORS OF PRODUCTION AND THEIR REWARDS
| Factor |
Reward |
| Land |
Rent |
| Labour |
Wages |
| Capital |
Interest |
| Entrepreneur |
Profit |
IMPORTANCE OF FACTORS OF PRODUCTION
- They are essential for production of goods and services.
- They create employment opportunities.
- They promote economic development.
- They increase national income.
TEACHER’S ACTIVITIES
- Explains each factor of production.
- Uses real-life examples.
- Asks students to identify factors in their environment.
- Draws diagrams on the board for illustration.
STUDENTS’ ACTIVITIES
- Listen attentively.
- Give examples of each factor.
- Participate in discussion.
- Answer questions.
EVALUATION QUESTIONS
- Define factors of production.
- List the four factors of production.
- State two characteristics of land.
- What is the reward of labour?
- Who is an entrepreneur?
ASSIGNMENT
- Explain the four factors of production.
- State three characteristics of capital.
- Mention five examples of labour in your community.
BOARD SUMMARY
- Factors of production are land, labour, capital and entrepreneur.
- Each factor has a specific role in production.
- Each factor receives a reward for its contribution.
CONCLUSION
The teacher reviews the lesson by asking oral questions and guiding students to identify factors of production in their environment.
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