Last Updated on March 27, 2021 by Alabi M. S.
THEME: ACTIVITIES THAT AIDS COMMERCE
TOPIC – FACTORS OF PRODUCTION
1. Meaning of Factors of Production
2. Characteristics (Features) of Each Factors of Production
3. Importance of Each Factors of Production
By the end of the lesson, the students should have attained the following objectives (cognitive, affective and psychomotor) and should be able to –
1. list the factors of production.
2. state the features of each factor of production.
3. mention the importance of each factor of production in business.
The teacher will teach the lesson with the aid of:
1. Charts showing factors of production.
2. Pictures of a business concern.
METHOD OF TEACHING – Choose a suitable and appropriate methods for the lessons.
Note – Irrespective of choosing methods of teaching, always introduce an activities that will arouse pupil’s interest or lead them to the lessons.
1. Scheme of Work
2. 9 – Years Basic Education Curriculum
3. Course Book
4. All Relevant Material
5. Online Information
CONTENT OF THE LESSON
Production can be defined as the creation of good and service for the purpose of satisfying human consumption.
FACTORS OF PRODUCTION
Factors of production is the different resources put together to produce and make different goods and services available for human consumption.
These resources are land, labour, capital and entrepreneur.
LAND AS A FACTOR OF PRODUCTION
Land is the free gift of nature available and used in the process of production.
It includes: water, forest, mineral resources, mountain and plain, air, etc.
Land can be bought or rent.
CHARACTERISTICS OF LAND
1. It is a free gift of nature.
2. It is fixed in supply.
3. It has no cost of production. Land cannot be produced.
4. The price of land is varies depend on their location.
5. It is not movable.
6. The reward for land is rent.
IMPORTANCE OF LAND
1. It is used for agriculture.
2. It is used for setting up factory, office, school, office, etc.
3. It serves as a source of raw materials for industries.
4. It serves as an income generation.
LABOUR AS A FACTOR OF PRODUCTION
Labour is both physical and mental efforts of man used in production.
It is human factor of production that work on other factors of production.
The reward for labour is wages and salaries.
CHARACTERISTICS OF LABOUR
1. Labour is human factor of production.
2. Labour is mobile. That’s, it is movable factor of production.
3. Labour costs money.
4. The reward for labour is wages and salaries.
5. The reward is negotiable.
IMPORTANCE OF LABOUR
1. It aids growth and development.
2. It provides special skills.
3. It provides variety of skills.
4. It is an act factor of production.
CAPITAL AS FACTOR OF PRODUCTION
Capital is the resource (money, wealth, machines or equipment) used for the production of more resources.
Capital is very important for setting up a business.
The reward for capital is interest.
CHARACTERISTICS OF CAPITAL
1. It is man made factor of production.
2. Its reward is interest.
3. It made production of goods and services possible.
4. It requires hardworking and savings to organize.
5. Source of capital is saving, gift from family and friends, loans, etc.
IMPORTANCE OF CAPITAL
1. It aids production.
2. It attracts business investors.
3. It is used for buying raw materials.
4. It settles wages and salaries of labour.
5. It promotes goods and services.
6. It produces more capital.
ENTREPRENEUR AS FACTOR OF PRODUCTION
Entrepreneur is a factor of production that organizes, manages and coordinates all other factors of production.
Entrepreneur minimum cost and maximum production in order to make profit.
The reward is profit and loss.
CHARACTERISTICS OF ENTREPRENEUR
1. He/she provides capital.
2. He/she bears the risk of business.
3. He/she formulate business policies.
4. He/she makes the business decisions.
5. He/she coordinates other factors of production.
6. He/she determines what to produce.
7. He/she employs labour.
To deliver the lesson, the teacher adopts the following steps:
1. To introduce the lesson, the teacher revises the previous lesson. Based on this, he/she asks the students some questions;
2. Leads discussion on factors of production giving examples.
Student’s Activities – Mention the factors of production.
3. Writes short notes on factors of production.
Student’s Activities – Copy notes on factors of production.
4. Gives assignment on factors of production required to set up any business.
Student’s Activities – Carry out the assignment and submit.
To conclude the lesson for the week, the teacher revises the entire lesson and links it to the following week’s lesson.
1. mention four factors of production.
2. identify the features of four factors of production.
3. explain the importance of four factors of production.