Factors of Production: Meaning and Importance
Business Studies JSS 1 – Second Term Lesson Plan
Week 2: Factors of Production
Lesson Plan Presentation
Subject: Business Studies
Class: JSS 1
Term: Second Term
Week: 2
Age: 10–12 years
Topic: Factors of Production
Sub-topic: Definition, Features, and Importance of Factors of Production
Duration: 40 minutes
Behavioural Objectives
By the end of the lesson, students should be able to:
- Define factors of production.
- List and explain the four factors of production.
- State the features of each factor of production.
- Explain the importance of each factor of production.
- Describe the relationship between producers and consumers.
Keywords
- Factors of Production
- Land
- Labour
- Capital
- Entrepreneur
- Rent
- Wages
- Interest
- Profit
Set Induction
The teacher displays pictures of a farm, factory, and business office, asking students to identify the resources needed to produce goods and services.
Entry Behaviour
Students are familiar with how businesses operate and the need for workers, money, and materials to produce goods.
Learning Resources and Materials
- Flashcards showing different factors of production
- Videos on how businesses produce goods
- Charts displaying land, labour, capital, and entrepreneurship
Building Background/Connection to Prior Knowledge
Students have seen people working, land being used for farming, and shops selling goods. They have an idea that businesses need money and workers to function.
Embedded Core Skills
- Critical Thinking
- Communication
- Collaboration
Reference Books
- Lagos State Scheme of Work
- Business Studies for JSS 1 by A. O. Yusuf
- Essential Business Studies for Junior Secondary Schools
Instructional Materials
- Whiteboard and markers
- Posters showing different factors of production
- A short documentary on business production
Lesson Content
Definition of Factors of Production
Factors of production are resources used to produce goods and services. They include land, labour, capital, and entrepreneurship.
The Four Factors of Production
-
Land
- Land is a free gift of nature used for farming, building, and extracting natural resources.
- Reward: Rent
Features of Land:
- Land is a free gift of nature.
- It is immobile (cannot be moved).
- It is subject to diminishing returns.
- Its supply is fixed by nature.
Importance of Land:
- Used for farming.
- Used for livestock rearing.
- Source of minerals (gold, petroleum, etc.).
- Used for building houses and businesses.
- Can be used as collateral to get loans.
-
Labour
- Labour is the human effort (physical and mental) used in production.
- Reward: Wages or Salary
Features of Labour:
- Labour is mobile (it can move from one place to another).
- It is a human factor.
- It has emotions and feelings.
- It cannot be predicted.
Importance of Labour:
- Needed to operate machines.
- Helps in producing goods and services.
- Provides the required skills for production.
- Influences other factors of production.
-
Capital
- Capital is the money and resources used to start and run a business.
- Reward: Interest
Features of Capital:
- Capital is man-made.
- It can change form.
- Subject to depreciation (loses value over time).
- It is durable.
Importance of Capital:
- Helps businesses grow.
- Increases the standard of living.
- Attracts investors.
- Helps in the production of quality goods.
-
Entrepreneur
- The entrepreneur organizes and manages the other factors of production.
- Reward: Profit
Features of an Entrepreneur:
- A risk-taker.
- Provides capital for business.
- A decision-maker.
- Controls other factors of production.
Importance of an Entrepreneur:
- Provides capital needed for production.
- Bears business risks.
- Manages and controls the business.
- Makes important decisions.
Relationship Between Producers and Consumers
- Producers are people or companies that make goods and services.
- Consumers are the people who buy and use these goods.
- Production is not complete until the goods reach the final consumers.
Evaluation
Fill-in-the-blank Questions
-
The four factors of production are land, labour, capital, and ________.
a) Money
b) Entrepreneur
c) Manager
d) Worker -
The reward for land is ________.
a) Salary
b) Interest
c) Rent
d) Profit -
________ is the human effort used in production.
a) Capital
b) Land
c) Labour
d) Entrepreneur -
The reward for capital is ________.
a) Wages
b) Rent
c) Interest
d) Profit -
The factor of production that organizes and controls the others is ________.
a) Labour
b) Land
c) Capital
d) Entrepreneur -
One importance of land is that it is used for ________.
a) Teaching
b) Farming
c) Driving
d) Swimming -
The reward for an entrepreneur is ________.
a) Profit
b) Rent
c) Salary
d) Interest -
Capital can change its ________.
a) Colour
b) Form
c) Owner
d) Size -
The people who use goods and services are called ________.
a) Producers
b) Consumers
c) Entrepreneurs
d) Bankers -
A factory worker is an example of ________ labour.
a) Skilled
b) Unskilled
c) Semi-skilled
d) Professional
Class Activity Discussion (FAQs with Answers)
-
What are factors of production?
- Resources used to produce goods and services.
-
What are the four factors of production?
- Land, Labour, Capital, and Entrepreneur.
-
What is the reward for land?
- Rent.
-
Give two examples of capital.
- Machines and money.
-
What is the role of an entrepreneur?
- Organizes and controls production.
-
Why is labour important in production?
- It provides the skills and effort needed.
-
What does capital help businesses do?
- It helps them grow and produce more goods.
-
Can land be moved?
- No, it is immobile.
-
What do consumers do?
- They buy and use goods and services.
-
How does production begin and end?
- It starts with producers and ends with consumers.
Presentation
- The teacher revises the previous topic.
- The teacher introduces the new topic with examples.
- The teacher allows students to contribute and corrects their responses.
Conclusion
The teacher marks students’ work and provides feedback.
Understanding Production: Types, Stages, and Effects