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Factors of Production

Lesson Plan

Students will view chapter PowerPoint and complete outline notes. Students will learn to identify and explain scarcity and the four factors of production; land, labor, capital and entrepreneurship.

Students will learn that the production of products (goods and services) involves the four factors of production are land, labor, capital, and entrepreneurship.

Chapter PowerPoint John Ratzenberger's "Made in America" video Frito Lay production or an episode from You Tube. http://www.youtube.com/watch?v=ws_K9Cxs-uE&feature=related Worksheet for Frito Lays Factors of Production timeline. Colored pencils Frito Lay Potato Chips (optional) Worksheet for Factors of Production comparison chart

45 minutes

Factors of Production

List of terms Economy Resources Factors of production Entrepreneurship Scarcity

Background for Teacher:

1. An economy or economic system is the organized way a nation provides for the needs and wants of its people. 2. The resources used to produce goods and services are called the Factors of Production. 3. The four factors of production are a. Land (natural resources) b. Labor (skilled and unskilled workers) c. Capital (money, machinery, tools, and buildings used in the production process). d. Entrepreneur: The entrepreneur, business owner, or company (producer) utilizes these resources to provide goods and services to consumers. 4. Scarcity is the difference between unlimited wants and needs and the available resources.

Teacher Notes for Special Populations:

Factors of Production
Create a graphic organizer: Divide your class into small groups of four. Instruct students to cut pictures of items out of newspapers and magazines and glue them underneath headings in a chart that they draw themselves. The headings need to illustrate the four factors of production; labor, land, capital, and entrepreneurship.

8.1gr8 A4 B6 8.1gr12 A1 B5,6,13 9.1gr12 B6 9.2gr12 C1,2

Activity: Teacher Instructions:

1. Watch an episode of Made in America or YouTube. 2. Write on the chalkboard or overhead projector each of the things that went into making the product in this case Frito Lays potato chips. (Examples: potato, oil, salt, ink on wrapper, idea, machinery for peeling process, machinery for washing system, machinery for frying process, advertiser, salted or seasoning process, packaging process, trucks for hauling, electricity, natural gas etc. Usually, students will have fifty or more things.) 3. Explain the definitions for each of the four factors of production. 4. Ask for any questions about the definitions. 5. Have the students create a timeline for the production of Frito Lays from start to finish. Instruct them to use four different colors--one for each factor of production.

Engage: 1. Ask students if they ever took a tour of a manufacturing facility, if so what did they see. 2. Watch video about Frito Lay

Factors of Production
3. Brainstorm and list the examples of factors of production from the video Explore: 1. Students can work independently or in groups 2. Have the students create a timeline for the production of Frito Lays from start to finish. Instruct them to use four different colors--one for each factor of production. Explain: 1. Students will share their timeline with the class. Extend: 1. Ask students to develop options for what the company should do to keep their production costs down if there is a potato shortage. 2. Create a product: Describe the factors of production needed for a new student base business.

Using the comparison chart the students will classify each of the factors of production.

Additional Resources:
Video: John Ratzenberger's "Made in America" Frito Lay production or an episode from YouTube. http://www.youtube.com/watch?v=ws_K9Cxs-uE&feature=related

Student Lesson Materials:

Factors of Production: Timeline for Frito Lays Potato Chips Factors of Production Comparison Chart 4