Lesson Notes By Weeks and Term - Senior Secondary 1

Capital as a factor of production

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Term: 2nd Term

Week: 1

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Capital as a factor of production

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define Capital as a factor of production
  2. State the types and characteristics of capital
  3. Discuss the importance of capital

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on labour as a factor of production

Students pay attention

STEP 2

EXPLANATION

She defines capital as a factor of production

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She discusses the types, characteristics and importance of capital

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

CAPITAL AS A FACTOR OF PRODUCTION

Capital is a man-made asset which is used to aid production .

It is described as wealth put aside for the creation of further wealth.

Wealth, in this sense, is the stock of goods or material possession of an individual, business or organization or nation, including a stock of useful and exchangeable goods of a given time that has money value.

Indeed, capital is a material capable of yielding revenue to the owner. From this definition, we realize that ‘Buildings’ that are used for rentage are capitals. ‘Machine’ that is used in industry is also a capital. 

 

CHARACTERISTICS OF CAPITAL

  1. It takes diverse forms.
  2. It is man-made factor of production.
  3. The reward of capital is interest.
  4. It is mobile in nature.
  5. It must be transferable and constantly maintained where static
  6. It must be capable of being created
  7. It must be capable of yielding revenue to the owner
  8. It must not be in the hand of one person It must be transferable
  9. There should be no difficulty in its being added to

 

TYPES OF CAPITAL

  1. Fixed Capitals: are assets which are durable and do not change with the volume of production, e.g machine
    1. Circulating/Working Capitals: are capitals that change with the volume of production or are used up in production, eg raw-materials
    2. Current/Liquid Capitals: are the capitals required for day-to-day running of production of production activities, eg cash
    3. Social Capitals: are capital assets provided by the government that help to aid production activities, eg electricity, motor able roads, pipe-bone water, communication network

 

IMPORTANCE OF CAPITAL

  1. It helps to facilitate mass production
  2. It helps to boost efficiency in production
  3. It helps to increase standard of living of the people
  4. It helps in the location of industry
  5. It helps to improve the quality of products

 

EVALUATION:    1. Define capital as a factor of production

  1. State three characteristics of capital
  2. Explain the types of capital
  3. State three importance of capital

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively