ECONOMICS

• Economics
• Secondary Education

ECONOMICS

REWARDS OF FACTORS OF PRODUCTION

SUBJECT: ECONOMICS

STRAND: Firms’ Innovative Decision-Making

SUB-STRAND: Production of goods and services

WEEK: 9

CLASS: SHS ONE (1)

Content Standard:

Demonstrate knowledge and understanding of factors of production.

Learning Outcome: Evaluate the relevance of factors of production.
Learning Indicator: Identify the rewards for each factor of production.

Essential Questions

1. Which factors are considered in determination of the rewards for each factor of production in Ghana?
2.  How do technological advancements impact the rewards of factors of production?

3. What are the implications of unequal distribution of rewards among factors of production for economic inequality?
4. How will the application of ICT, GESI and SEL enhance the understanding of rewards for each factor of production?

SING A LOCAL FARM SONG

INTRODUCTION

• KEY WORDS

• Production

• Productivity

• Reward

• Factors

FACTORS OF PRODUCTION

MENTION THE FOUR FACTORS OF PRODUCTION

ECONOMIC ACTIVITIES OF;

• LAND

• LABOUR

• CAPITAL

• ENTREPRENEUR

MENTION SOME OF THE ECONOMIC USES (ACTIVITIES) OF LABOUR, LABOUR, CAPITAL AND ENTREPRENEUR

REWARDS

Reward refers to the benefits or returns that individuals or entities receive as a result of their efforts, investments, or actions.

These rewards can take various forms, including: praises, recognition, money or any incentive.

FACTORS OF PRODUCTION REWARD

Rewards of factors of production are the benefits or returns that the four factors of production receive as a result of their use in production.

WHAT REWARD DO FACTORS OF PRODUCTION RECEIVE?

COPY AND COMPLETE THE TABLE

S/N	FACTOR OF PRODUCTION	REWARD
1	LAND
2	LABOUR
3	CAPITAL
4	ENTREPRENEUR

EXERCISE

THE IMAGE BESIDE IS THE LIST OF FACTORS OF PRODUCTION AND REWARDS.

STUDY THE TABLE MATCH EACH WITH ITS RESPECTIVE REWARD.

ASK QUESTIONS FOR FURTHER EXPLANATION

What is the reward for land in economics?

1. Profit
2. Rent
3. Interest
4. Salary

What is the reward for labor in economics?

1. Fees
2. Wages
3. Dividends
4. Royalties

What is the reward for capital in economics?

1. Benefits
2. Interest
3. Commission
4. Allowance

What is the reward for entrepreneurship in economics?

1. Pension
2. Perks
3. Profit
4. Stipend

Which of the following is not a factor of production reward in economics?

1. Dividends
2. Interest
3. Wages
4. Rent

The rewards of factors of production are determined by their relative scarcity in the economy.

Yes, it reflects the supply-demand balance.

No, other factors also play a role.

Land receives rent as a reward for its contribution to production.

Yes, it's compensation for land use.

No, rent is artificially inflated.

Labor is rewarded with wages that reflect the skills and demand for the work.

Yes, it's fair compensation for work.

No, wages can be influenced unfairly.

Capital receives interest as a reward for contributing to the production process.

Yes, it reflects the use of capital.

No, interest can be exploitative.

Entrepreneurship is rewarded with profit for taking on the risk of production.

Yes, it incentivizes innovation and risk-taking.

No, profit can be excessive and unfair.

BY: B.A.K. AKORLOR