Understanding the Market: Types and Features Business Studies JSS 2 First Term Lesson Notes Week 6

Lesson Plan: Business Studies JSS 2 First Term Lesson Notes – Week 6


Subject: Business Studies
Class: JSS 2
Term: First Term
Week: 6
Age: 12-13 years
Topic: Market
Sub-topic: Features, Types (Capital and Money Market), and Commodity Market Institutions
Duration: 40 minutes


Behavioural Objectives:

By the end of the lesson, students should be able to:

  1. Define the term “Market.”
  2. List the features of a market.
  3. Explain the differences between the Capital Market and Money Market.
  4. Identify the institutions and instruments traded in the Commodity Market.

Keywords:

Market, Capital Market, Money Market, Commodity Market, Instruments, Institutions


Set Induction:

Ask the students where they or their parents buy goods and services. Let them discuss what they know about markets.


Entry Behaviour:

Students understand basic buying and selling activities.


Learning Resources and Materials:

  • Market charts showing different market types
  • Flashcards with market terms and definitions
  • Pictures of financial institutions and market instruments

Building Background/Connection to Prior Knowledge:

Students are familiar with local markets for buying and selling. They have an idea of how businesses sell products.


Embedded Core Skills:

  • Financial literacy
  • Communication
  • Critical thinking
  • Problem-solving

Learning Materials:

  • Lagos State Scheme of Work
  • Business Studies textbooks
  • Market diagrams showing the structure of Capital and Money Markets

Reference Books:

  • Lagos State Scheme of Work for Business Studies
  • Business Studies Textbook for JSS 2

Instructional Materials:

  • Charts of Capital and Money Market structures
  • Pictures of commodity goods like oil, gold, and agricultural products
  • Diagrams showing how markets function


Content:

I. Definition of a Market:

A market is a place where buyers and sellers meet to exchange goods, services, or financial instruments.

  • Example: A physical market like Balogun Market, or online platforms like Jumia.

II. Features of a Market:

  1. Buyers and Sellers: Every market must have both buyers and sellers.
    • Example: Shoppers at a grocery store are buyers, and the store owner is the seller.
  2. Goods or Services: There must be products or services available for exchange.
    • Example: Food items in a local market.
  3. Price: Prices are set in the market based on demand and supply.
    • Example: The price of bread at a local bakery.
  4. Exchange Process: Buyers give money, while sellers provide goods or services.
    • Example: Paying for vegetables at a store.
  5. Competition: Sellers compete for customers, and buyers seek better prices.
    • Example: Two vendors selling the same type of fruit at different prices.

III. Types of Markets:

  1. Capital Market:
    This is where long-term financial instruments, like stocks and bonds, are traded.

    • Example of Institutions: Nigerian Stock Exchange, banks.
    • Instruments traded: Stocks, bonds, government securities.
  2. Money Market:
    The Money Market deals with short-term borrowing and lending of money.

    • Example of Institutions: Central Bank of Nigeria, commercial banks.
    • Instruments traded: Treasury bills, certificates of deposit, and commercial papers.
  3. Commodity Market:
    In the Commodity Market, raw materials like oil, gold, and agricultural products are traded.

    • Example of Institutions: Nigeria Commodity Exchange.
    • Instruments traded: Oil, grains, gold, and agricultural products.

Evaluation:

15 Fill-in-the-Blank Questions:

  1. A ______ is where buyers and sellers exchange goods and services.
    a) bank
    b) market
    c) school
    d) restaurant
  2. The ______ market deals with long-term financial instruments like stocks.
    a) money
    b) capital
    c) commodity
    d) retail
  3. ______ is traded in the commodity market.
    a) Oil
    b) Money
    c) Savings
    d) Bonds
  4. Banks and the Stock Exchange are examples of institutions in the ______ market.
    a) capital
    b) commodity
    c) retail
    d) local
  5. Treasury bills are traded in the ______ market.
    a) capital
    b) money
    c) commodity
    d) retail
  6. A major feature of a market is the presence of ______.
    a) competition
    b) schools
    c) roads
    d) houses
  7. Stocks are traded in the ______ market.
    a) money
    b) capital
    c) commodity
    d) food
  8. ______ is a raw material traded in the commodity market.
    a) Computers
    b) Bread
    c) Gold
    d) Shoes
  9. ______ set the prices of goods and services in the market.
    a) Buyers and sellers
    b) Teachers
    c) Bankers
    d) Policemen
  10. One of the institutions in the Money Market is ______.
    a) Nigerian Stock Exchange
    b) Central Bank of Nigeria
    c) Supermarket
    d) Car dealer

Class Activity Discussion:

15 FAQs with Answers:

  1. What is a market?
    A market is a place where people buy and sell goods or services.
  2. What are the main features of a market?
    The main features include buyers and sellers, goods or services, price, competition, and exchange.
  3. What is the Capital Market?
    It is a market where long-term financial instruments like stocks and bonds are traded.
  4. What is the Money Market?
    The Money Market deals with short-term borrowing and lending of money.
  5. What is traded in the Commodity Market?
    Raw materials like oil, gold, and agricultural products are traded.
  6. Which institutions operate in the Capital Market?
    Examples include the Nigerian Stock Exchange and banks.
  7. What instruments are traded in the Money Market?
    Treasury bills, certificates of deposit, and commercial papers are traded.
  8. What role do buyers and sellers play in the market?
    Buyers purchase goods and sellers provide goods or services.
  9. What is the role of competition in a market?
    Competition helps to improve product quality and set better prices.
  10. Why is price important in a market?
    Prices determine the value of goods and services being exchanged.
  11. What is an example of a commodity traded in Nigeria?
    Oil is a common commodity traded in Nigeria.
  12. What do banks do in the Capital Market?
    Banks help to buy and sell stocks and bonds.
  13. What is a Treasury bill?
    A Treasury bill is a short-term financial instrument traded in the Money Market.
  14. Why do companies sell stocks?
    Companies sell stocks to raise money for business activities.
  15. What is the Nigerian Commodity Exchange?
    It is an institution where commodities like oil and grains are traded.

Presentation Steps:

  1. Step 1: The teacher revises the previous topic on “Aids to Trade.”
  2. Step 2: The teacher introduces the new topic, explaining the definition and features of a market.
  3. Step 3: The teacher allows students to give examples of different types of markets and institutions, correcting them where necessary.

Teacher’s Activities:

  • Define a market and explain its features.
  • Use charts and pictures to demonstrate the types of markets and instruments traded.
  • Guide students to differentiate between the Capital Market, Money Market, and Commodity Market.

Learners’ Activities:

  • Participate in group discussions about different types of markets.
  • Share examples of items traded in local or international markets.
  • Work in pairs to match institutions with the market they belong to.

Evaluation Questions:

  1. What is a market?
  2. List two features of a market.
  3. What is traded in the Capital Market?
  4. Give two examples of financial instruments traded in the Money Market.
  5. What is the Commodity Market?
  6. Name one institution in the Capital Market.
  7. What role do buyers play in the market?
  8. Mention one raw material traded in the Commodity Market.
  9. How do prices get determined in a market?
  10. Give one example of a product traded in the local market.

Conclusion:

The teacher goes around to mark students’ work and provides feedback based on their understanding of the topic.


Additional Information:

  • Captivating Title: Understanding the Market: Types and Features
  • Focus Keyphrase: Market
  • SEO Title: Understanding the Market: Types and Features Explained
  • Slug: understanding-the-market-types-features
  • Meta Description: Learn the definition, features, and types of markets, including Capital and Money Markets.