FACTORS OF PRODUCTION – CAPITAL
Subject : Agricultural Science
Topic :
FACTORS OF PRODUCTION – CAPITAL
Class : Basic 8 / JSS 1
Term : Third Term
Week : Week 10
Reference Materials
- Scheme of Work
- Online Information
- Textbooks
- Workbooks
- 9 Year Basic Education Curriculum
Previous Knowledge :
The pupils have previous knowledge of weeds in their previous lessons
THE FACTORS OF PRODUCTION: LABOUR
Behavioural Objectives : At the end of the lesson, the pupils should be able to
- say the Meaning of Capital (Money)
- mention the Characteristics of Capital
- list Types of Capital/Assets
- Differences between Fixed Capital and Working Capital
- explain the Importance of Capital in Agriculture
FACTORS OF PRODUCTION – CAPITAL
CONTENT
- Meaning of Capital (Money)
- Characteristics of Capital
- Types of Capital/Assets
- Differences between Fixed Capital and Working Capital
- Importance of Capital in Agriculture
Meaning of Capital (Money)
Capital refers to all man-made productive assets which are used in production e.g. hoes, plough, farm building, cash etc. OR
These are assets made by man to enable him to produce goods and services.
Characteristics of Capital
The following are the characteristics of capital:
- Capital can appreciate and depreciate.
- Some are mobile e.g. tractor
- It is man-made and accumulates over the years.
- Capital stock can be improved through saving or borrowing.
- Reward for capital is interest.
Types of Capital/Assets
Capital is grouped into two types of assets:
- Fixed capital or assets: These are capitals or assets purchased for continuous use in production. They are items or materials which are not used up during the process of production. g: farm buildings, motor vehicles, farm tools and implement, land, furniture, incubators, etc
- Working /circulatory/variable/non-durable capital: They are capital or assets which are used up during the process of production. e.g water, drugs, feeds, cash in hand, fertilizers, seeds, chemicals, etc.
Differences between Fixed Capital and Working Capital
| S/N | Fixed Capital | Working Capital | |
| 1. | They are items or materials which are not used up during the process of production. | They are capital or assets which are used up during the process of production | |
| 2. | They are durable | They are non-durable | |
| 3. | They do not change form during the production process. | They change form during the production process. | |
| 4. | Examples are: farm buildings, motor vehicles, farm tools and implement, land, furniture, incubators, etc. | Examples are: water, drugs, feeds, cash in hand, fertilizers, seeds, chemicals, etc. | |
Importance of Capital in Agriculture
- Working capital is used in day-to-day running of the farm enterprise.
- Working capital is used for paying wages.
- Working capital is used for the purchase of farm inputs.
- Fixed capital in for of machinery provides farm power for farm operation.
- Fixed capital is used to generate more funds.
- Working capital helps to facilitate farm expansion.
- Capital is used to establish farm enterprise.
Presentation
The topic is presented step by step
Step 1:
The class teacher revises the previous topics
Step 2.
He introduces the new topic
Step 3:
The class teacher allows the pupils to give their own examples and he corrects them when the needs arise
EVALUATION
- Define the term capital
- State four importance of capital in agricultural production.
- Differentiate between fixed and circulatory capital
Conclusion :
The class teacher wraps up or conclude the lesson by giving out short note to summarize the topic that he or she has just taught.
The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.
He or she does the necessary corrections when and where the needs arise.
Assignment :
Prepare for the next lesson by reading about