Production, Types and Factors for SS 1

Class: SS 1
Term: Third Term
Week: 1
Age: 15 years
Duration: 60 minutes
Subject: Economics
Curriculum Theme: Business Organization
Focal competence: Analyzing the efficiency of the factors of production within the real life economic contexts
Key competencies/values: Collaboration; Responsibility; Entrepreneurship; Integrity
Skills:

• Applying of production concepts in real-life economic contexts

Previous Lesson: Instruments of Business Finance: Financing Problems in Nigeria
Topic: Theory Of Production
Subject Matter: Meaning and types of production, Factors of production

Specific Objectives

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

Cognitive Domain

• define production;
• explain the types of production;
• identify the factors of production;
• describe the characteristics of the factors of production.

Affective Domain

• appreciate the importance of efficient resource allocation in production;
• value collaboration in economic problem-solving.

Psychomotor Domain

• participate actively in group discussions on production concepts;
• present group findings on the meaning and types of production.

Social Domain

• collaborate effectively with peers in group activities;
• demonstrate responsibility in group tasks related to economic concepts.

Reference Materials

The following resources were used in planning this lesson:

• 2025 New Revised Senior Secondary Education Curriculum (SSEC)
• Relevant State Unified Scheme of Work
• A suitable Economics textbook for SS 1
• The HeadTeacher Scheme of work For The New Revised Senior Secondary Education Curriculum (SSEC)

Instructional Materials

The teacher will teach this lesson with the aid of:

• Flashcards & Charts showing different production activities and factors
• Textbooks
• Consumer goods (candies, books, pens, biscuits etc.) to illustrate output
• Whiteboard/Blackboard and markers/chalk

Rationale for the Lesson

This lesson is important as it lays the foundation for understanding how goods and services are created in an economy. It helps students grasp the basic elements required for any economic activity, enabling them to analyze resource allocation and decision-making in real-life business contexts. Understanding production is crucial for appreciating economic growth and development.

Prerequisite/Previous Knowledge

Students should have a basic understanding of economic activities and the concept of scarcity from their junior secondary economics lessons.

Lesson Content/Board Summary

Theory Of Production

Meaning of Production

Production in economics refers to the process of creating goods and services that satisfy human wants. It involves combining various resources (inputs) to transform them into outputs that have utility and value. This transformation adds value to raw materials or existing goods, making them more useful or desirable to consumers.

For example, a farmer cultivating yam transforms land, seeds, and labour into food (yam). A shoemaker transforms leather, thread, and labour into shoes. These processes satisfy human needs for food and clothing, respectively.

Types of Production

Production can be broadly classified into three main types based on the stage of economic activity:

1. Primary Production: This involves the extraction of raw materials directly from nature. It is the first stage of production.

• Examples: Farming (crop cultivation, animal husbandry), fishing, mining (coal, crude oil, solid minerals), forestry (timber logging), quarrying.
• Nigerian Context: Crude oil extraction by companies like Shell, farming of cassava and maize by local farmers, fishing in coastal areas.

• Examples: Manufacturing (textile production, car assembly, food processing), construction (building houses, roads, bridges).
• Nigerian Context: Dangote Cement producing cement from limestone, local bakeries making bread from flour, textile factories producing fabrics.

• Examples: Transportation, banking, insurance, education, healthcare, retail trade, communication, tourism.
• Nigerian Context: Commercial banks providing financial services, public transport operators moving people, teachers providing education, doctors offering medical care.

Factors of Production

The factors of production are the resources or inputs used in the production of goods and services. They are typically classified into four main categories, each with its specific reward:

1. Land: This refers to all natural resources supplied by nature. It includes not just the surface of the earth, but also all natural resources found above and below it.

• Examples: Agricultural land, forests, mineral deposits (crude oil, tin, coal), rivers, lakes, oceans, climate, air.
• Reward: Rent.

• Examples: Farmers, factory workers, teachers, doctors, engineers, artisans, managers.
• Reward: Wages and Salaries.

• Examples: Machinery, tools, equipment, factories, roads, bridges, raw materials, money used for investment.
• Reward: Interest.

• Examples: Business owners, innovators, risk-takers who start and manage enterprises.
• Reward: Profit.

Characteristics of Factors of Production

1. Characteristics of Land:

• It is a free gift of nature.
• Its supply is fixed (inelastic) in quantity, though its quality can be improved.
• It is geographically immobile, but its uses can be changed.
• It is subject to the law of diminishing returns.
• It is heterogeneous (not uniform in quality or fertility).

• It is a human factor and cannot be separated from the labourer.
• It is mobile (can move from one place or occupation to another).
• Its efficiency varies from person to person.
• It is perishable; if not used, it is lost forever (e.g., a day’s work not done cannot be recovered).
• It can be improved through education and training.

• It is man-made.
• It is mobile (can be moved from one place to another).
• It is productive (increases the efficiency of labour and land).
• It is accumulated through savings and investment.
• Its supply is elastic (can be increased or decreased).

• It involves risk-bearing.
• It requires innovation and creativity.
• It involves decision-making and organization.
• It is dynamic and adaptable to changing market conditions.
• It is a scarce resource, as not everyone possesses entrepreneurial skills.

Teaching Methods/Instructional Techniques

Discussion, Explanation, Group Work, Question and Answer, Brainstorming, Guided Practice

Instructional Procedures

Step 1: Introduction

Time: 5 minutes

Teaching Skill: Brainstorming/Questioning

Teacher’s Activity: The teacher greets the students and asks them to think about how common items like bread, clothes, or mobile phones are made. The teacher then guides students to brainstorm in groups on what they think “production” means in economics.

Pupils’ Activity: Students greet the teacher and discuss in groups, sharing their initial ideas about production.

Learning Point: Introduction to production

Step 2: Meaning of Production

Time: 10 minutes

Teaching Skill: Explanation/Definition

Teacher’s Activity: The teacher consolidates the students’ ideas, provides a formal definition of production, and gives relevant Nigerian examples (e.g., a farmer producing yam, a factory producing cement) to make the concept concrete. The teacher explains how production adds value.

Pupils’ Activity: Students listen attentively, ask questions for clarification, and note down the definition of production.

Learning Point: Definition of production

Step 3: Types of Production

Time: 10 minutes

Teaching Skill: Classification/Discussion

Teacher’s Activity: The teacher guides students to explain the types of production (primary, secondary, tertiary) using flashcards or charts. The teacher encourages students to provide examples from their local environment for each type.

Pupils’ Activity: Students participate in the discussion, identify the types of production, and give examples from Nigeria (e.g., crude oil extraction, textile manufacturing, banking services).

Learning Point: Types of production

Step 4: Factors of Production – Land and Labour

Time: 10 minutes

Teaching Skill: Explanation/Identification

Teacher’s Activity: The teacher introduces the factors of production, focusing on Land and Labour. The teacher defines each factor, provides examples, and explains their respective rewards (rent for land, wages/salaries for labour).

Pupils’ Activity: Students listen, identify land and labour as factors, and note down their definitions and rewards.

Learning Point: Land and Labour factors

Step 5: Factors of Production – Capital and Entrepreneurship

Time: 10 minutes

Teaching Skill: Explanation/Identification

Teacher’s Activity: The teacher continues by explaining Capital and Entrepreneurship as factors of production. The teacher defines each, provides examples, and explains their respective rewards (interest for capital, profit for entrepreneurship), linking them to business decisions.

Pupils’ Activity: Students listen, identify capital and entrepreneurship, and note down their definitions and rewards.

Learning Point: Capital and Entrepreneurship

Step 6: Characteristics of Factors of Production

Time: 5 minutes

Teaching Skill: Elaboration/Description

Teacher’s Activity: The teacher describes the unique characteristics of each factor of production (e.g., land is fixed, labour is mobile, capital is man-made, entrepreneurship is risk-bearing). The teacher uses simple analogies to illustrate these characteristics.

Pupils’ Activity: Students listen and note the key characteristics of each factor of production.

Learning Point: Characteristics of factors

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. What is production?
2. Mention two types of production with an example for each.
3. List the four factors of production.
4. State one characteristic of labour.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Understanding production concepts

Step 8: Note-Taking

Time: 10 minutes

Teaching Skill: Guided Writing

Teacher’s Activity: The teacher guides pupils/students to copy the essential Board Summary notes on the meaning, types, and factors of production into their notebooks.

Pupils’ Activity: Pupils/students copy the notes carefully into their notebooks.

Learning Point: Recording lesson notes

Step 9: Conclusion

Time: 5 minutes

Teaching Skill: Consolidation

Teacher’s Activity: The teacher briefly summarizes the key points of the lesson, emphasizing that production is fundamental to economic activity and involves combining resources to create goods and services. The teacher encourages students to observe production activities around them.

Pupils’ Activity: Students listen and reflect on the lesson’s main points.

Learning Point: Production concepts reinforced

Continuous Assessment/Further Study

Type: Homework

Instruction: Answer the following questions in your notebook:

1. Differentiate between primary and secondary production, giving two examples for each from Nigeria.
2. Explain the term “Capital” as a factor of production and state its reward.
3. Identify a local business in your community and list the factors of production it uses.

Lesson Keywords

• Production – The process of creating goods and services to satisfy human wants.
• Primary Production – Extraction of raw materials from nature.
• Secondary Production – Transformation of raw materials into finished goods.
• Tertiary Production – Provision of services.
• Factors of Production – Resources used to produce goods and services.
• Land – All natural resources.
• Labour – Human effort in production.
• Capital – Man-made resources for production.
• Entrepreneurship – Organizing and risk-bearing factor.
• Rent – Reward for land.
• Wages/Salaries – Reward for labour.
• Interest – Reward for capital.
• Profit – Reward for entrepreneurship.

Differentiation

Support: Provide simplified definitions and more visual aids for students who struggle with abstract concepts. Pair them with stronger students for group activities.

Extension: Encourage advanced students to research the concept of “division of labour” or “specialization” and how it affects production efficiency in different types of industries.

Suggested Lesson Videos

Search on YouTube: meaning types factors of production economics SS1 Nigeria