Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: factors affecting transfer earnings and economic rent in an occupation
Learning Objective/s:
  • Describe the concepts of transfer earnings and economic rent in an occupation.
  • Identify at least five factors that influence transfer earnings.
  • Analyse how market imperfections and government policies affect economic rent.
  • Apply the concepts to calculate economic rent using a real‑world example.
  • Evaluate the impact of policy changes on both transfer earnings and economic rent.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck summarising definitions and factors
  • Handout with the nurse case study and calculation worksheet
  • Whiteboard markers and chart paper
  • Access to online labour market data (e.g., unemployment rates)
 Introduction:

Begin with a quick poll: “What would make you stay in a job even if a slightly lower‑paying alternative exists?” Connect this to students’ prior knowledge of wages and job choice. Explain that today they will learn how to measure the minimum wage a worker would accept (transfer earnings) and the surplus above it (economic rent). Success will be demonstrated by accurately calculating rent in a case study and explaining policy effects.
Lesson Structure:
  1. Do‑now (5'): Quick quiz on basic labour‑market terminology (wage, supply, demand).
  2. Mini‑lecture (10'): Define transfer earnings and economic rent; present key factors using slides.
  3. Group analysis (15'): Work through the nurse example, calculate economic rent, and list influencing factors.
  4. Policy impact discussion (10'): In pairs, discuss how minimum‑wage laws, licensing, and subsidies shift earnings and rent.
  5. Guided practice (10'): Answer three practice questions; teacher circulates to check understanding.
  6. Exit ticket (5'): Write one way a new government policy could change a worker’s transfer earnings.
Conclusion:

Recap the distinction between transfer earnings and economic rent and how they are shaped by market conditions and policy. Collect exit tickets to gauge understanding and assign a short homework: find a recent news article describing a policy change and predict its effect on transfer earnings and rent for a specific occupation.