Lesson Notes By Weeks and Term - Senior Secondary 2
The Production Possibility Curve (PPC) II
The Production Possibility Curve (PPC) II
Term: 1st Term
Week: 8
Class: Senior Secondary School 2
Age: 16 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Economics
Topic:- The Production Possibility Curve(PPC) II
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
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 elasticity of demand and supply |
Students pay attention |
|
STEP 2 EXPLANATION |
She discusses the entire concept of productivity and its elements |
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
She states and explains the law of variable proportion |
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
PRODUCTION POSSIBILITY CURVE (PPC)
Productivity simply measures efficiency in the use of economic resources.
Suppose we differentiate an input and keep all the other inputs unchanged, then for different degrees of that input we get different degrees of output. This association between the variable input and output, keeping all the other inputs unchanged is often referred to as total product (TP) of the variable input. This is also sometimes termed as the total return or total physical product of the variable input. It will be helpful to elucidate the concepts of average product (AP) and marginal product (MP). They are useful in order to explain the contribution of the variable inputs to the production procedure.
Average product is explained as the output per unit of the variable input. We can calculate it as follows:
APL = TPL/L
Marginal product of an input is explained as the change in the output per unit of change in the input when all the other inputs are held unchanged. When the capital is held unchanged, the marginal product of labour is as follows:
MPL = Change in output/Change in input
∆TPL/∆L
Since the inputs cannot take the negative values, the marginal product is unexplained at zero degree of the employment of input. For any degree of an input, the sum of marginal products of every foregoing unit of that input gives the total product. So, the total product is the sum of marginal products.
Total Product, Marginal Product, and Average Product
|
Labour |
TP |
MPL |
APL |
|
0 |
0 |
– |
– |
|
1 |
10 |
10 |
10 |
|
2 |
24 |
14 |
12 |
|
3 |
40 |
16 |
13.33 |
|
4 |
50 |
10 |
12.5 |
|
5 |
56 |
6 |
11.2 |
|
6 |
57 |
1 |
9.5 |
An average product of an input at any degree of employment is the aggregate of all the marginal products up to that degree. According to the variable inputs, the average and marginal products are often mentioned as the average and marginal returns.
THE LAW OF VARIABLE PROPORTION OR THE LAW OF DIMINISHING RETURNS.
The Law states that as more and more of a variable factor (e.g Labour) is added to a fixed factor (e.g Land), the total output initially increases up to a certain point (optimum) and later declines, the marginal output also increases up to particular point and later falls. Further addition of variable factors to the fixed factor will be increasing at a decreasing rate.
EVALUATION: 1. Discuss the concept of productivity
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively