income distribution - class 1

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Program for this lesson

• Review of the test
• Primary income and transfer income
• Assignments 

Lesson objectives

1. You can name the four factors of production and give an example of each one of them. 

2. You can link the four factors of production to the five primary incomes. 

3. You can name the main difference between a primary income and a transfer income. 

How did you prepare for the test?

How did the test go?

Factors of production

• Capital
• Labour
• Nature
• Entrepreneurship

Factors of production

• Capital
• Machinery, buildings, materials
• Labour
• The work that people do
• Nature
• Land, sunlight, natural resources
• Entrepreneurship
• The entrepeneur coordinating the production process

Which production factor?

And this one??

Five primary incomes

Primary income --> use your working power/possessions to make a contribution to a production process:

1. Salary or wage
2. Interest
3.  Rent
4. Lease (pacht)
5. Profit

Five primary incomes

The total primary income of a country = national income

National income = GDP (Gross Domestic Product)

Drag the right primary incomes to the factors of production. 

Lease

Profit

Capital

Labour

Nature

Entrepeneurship

Salary

Interest or rent

Transfer income

Transfer income = an income which you get without having to do anything in return.

• Old Age Pensions Act
• Housing allowances

From parent(s)...

...To Son/Daughter

Is maintainance (alimentatie) an example of a primary income or transfer income?

1. Primary income
2. Transfer income

What is the main difference between a primary income (wage) and a transfer income (pocket money)?

Complete assignments 2.1 till 2.5

Lesson objectives

1. You can name the four factors of production and give an example of each one of them. 

2. You can link the four factors of production to the five primary incomes. 

3. You can name the main difference between a primary income and a transfer income.