Lesson Plan

• Describe the different types of investment (physical, human, R&D) and how they affect a firm’s production capacity.
• Explain short‑run and long‑run impacts of investment on labour, capital and total factor productivity.
• Analyse how scale effects and adjustment periods influence productivity gains.
• Apply the concepts by interpreting a table of investment effects and predicting outcomes for a given firm.
• Evaluate the importance of investment decisions for firm profitability.

• Projector or interactive whiteboard
• Slide deck with key concepts and diagrams
• Handout containing the investment effects table
• Worksheet with case‑study questions
• Calculator for productivity calculations
• Whiteboard markers

Begin with a quick poll: “What recent investment have you heard of that changed how a product is made?” Connect this to students’ prior knowledge of capital and labour. Explain that by the end of the lesson they will be able to describe and evaluate how different investments shift productivity in both the short and long run.

1. Do‑now (5') – Recall quiz on definitions of capital, labour, and productivity.
2. Mini‑lecture (10') – Present types of investment and illustrate the upward shift of the production function using slides.
3. Table analysis activity (12') – In pairs, examine the investment effects table, identify short‑run vs long‑run impacts, and complete a summary sheet.
4. Case‑study application (10') – Groups assess a fictional firm’s investment plan and predict productivity changes; each group shares a brief conclusion.
5. Concept check (5') – Whole‑class Q&A with clicker responses to confirm understanding of key take‑aways.
6. Exit ticket (3') – Write one sentence summarising how investment influences productivity and note any remaining question.

Recap the main ways physical, human, and R&D investment boost productivity and the distinction between short‑run and long‑run effects. Collect exit tickets to gauge understanding and assign a brief homework: research a real company’s recent investment and predict its impact on productivity using the concepts learned.