Lesson Plan

• Describe the four factors of production and the corresponding rewards (rent, wages, interest, profit).
• Explain how each reward is determined in factor markets.
• Analyse the role of each reward in resource allocation and economic efficiency.
• Apply the concepts to real‑world examples by matching factors with appropriate rewards.
• Evaluate how changes in supply, demand, or policy affect factor rewards.

• Projector and screen
• Whiteboard and markers
• Printed handout of the factor‑reward table
• Worksheet with case studies
• Sticky notes for exit tickets
• Computers/tablets for online simulation (optional)

Start with a quick poll: “What do you receive when you own land, work, lend money, or run a business?” Connect the responses to previous lessons on factor markets and state that by the end of the session students will be able to identify and explain each reward.

1. Do‑now (5’) – Mini‑quiz on the board where students match everyday scenarios to rent, wages, interest or profit.
2. Mini‑lecture (10’) – Review the four factors of production and introduce the four rewards using the handout table.
3. Guided analysis (12’) – In pairs, students complete a worksheet analysing a case study for each factor and justify the reward.
4. Whole‑class discussion (8’) – Groups share findings; teacher draws supply‑demand diagrams to show how each reward is set.
5. Interactive simulation (10’) – Use an online factor‑market simulator to illustrate how technology or policy shifts affect wages, rent, interest and profit.
6. Check for understanding (5’) – Exit ticket: list the four rewards and one key determinant for each.

Recap the four rewards and their main determinants, then collect exit tickets to gauge retention. For homework, ask students to research a local business and identify the factor rewards it receives, preparing a brief paragraph for the next lesson.