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ECONOMICS FOR CAMBRIDGE IGCSE™ AND O LEVEL: TEACHER’S RESOURCE
Introduction
Welcome to the new edition of the Cambridge IGCSE™ and O Level Economics series.
This exciting new edition has been designed by talking to teachers all over the world. The series will support you with the updated syllabus, solve your biggest classroom challenges and engage your students with the study of economics. We have worked hard to understand your needs and challenges, and then carefully designed and tested the best ways of meeting them.
As a result of this research, we have made some important changes to the series. The series uses the most successful teaching pedagogies, including active learning and metacognition. For this new series, we have included relevant pedagogical features in the Coursebook, such as ‘Check your progress’ to encourage selfassessment and reflection, as well as ‘Economics in Context’ to bring real-world application to the classroom. Scaffolded activities in the Coursebook help students to develop their understanding of economics and encourages group discussion. The Workbook includes additional engaging exercises to consolidate your students’ learning, as well worked examples and the opportunity to evaluate sample answers.
This Teacher’s Resource has been carefully redesigned to make it easier for you to plan and teach your course, and it gives you full guidance on how to integrate teaching ideas into your classroom. The suggested number of guided hours to teach this syllabus is 130, so this Teacher’s Resource provides you with a range of activities to choose from and adapt to best meet the needs of your students. You do not need to teach every activity in order to have covered the whole syllabus. You can get to know your students better with frequent and effective formative assessment opportunities and guidance. Teaching ideas include clear learning intentions and success criteria, as well as an array of assessment techniques including advice on self- and peer-assessment. Ensure that all students can progress in your course with clear, consistent differentiation in the form of advice about supporting students’ different needs.
All our resources are written for teachers and students who use English as a second or additional language. Finally, we hope this resource will inspire you, support you and save you much-needed time. We want to make sure we continue to meet your teaching needs, so please do get in touch if you have any questions or comments.
Julia Fusi Commissioning Editor for Economics – Cambridge University Press & Assessment
ECONOMICS FOR CAMBRIDGE IGCSE™ AND O LEVEL: TEACHER’S RESOURCE
How to use this Teacher’s Resource
This Teacher’s Resource contains both general guidance and teaching notes that help you to deliver the content in our Cambridge resources.
At the start of each chapter, there is a Teaching plan, which summarises the topics covered in the chapter, including the approximate number of learning hours recommended for the topic, an outline of the learning content, and the Cambridge resources that can be used to deliver the topic.
Sub-chapterApproximate number of learning hours
Learning content Resources
The Background knowledge feature explains the prior knowledge required to access the chapter and gives suggestions for addressing any gaps in your students’ knowledge.
BACKGROUND KNOWLEDGE
The Language support feature contains suggestions on how to support students, especially those with English as an additional language.
LANGUAGE SUPPORT
There are often Common misconceptions associated with particular topics. These are identified in a table along with suggestions for eliciting evidence of these misconceptions in your class and suggestions for how to overcome them.
Common misconceptions
There are Teaching notes for each chapter of the Coursebook. Each set of teaching notes contains various activity ideas that will help you deliver the chapter.
ECONOMICS FOR CAMBRIDGE IGCSE™ AND O LEVEL: TEACHER’S RESOURCE
LEARNING PLAN
Syllabus
Each sub-topic is covered by a selection of Starter ideas, Main teaching ideas and Plenary ideas. You can pick out individual ideas and mix and match them depending on the needs of your class. The activities include suggestions for how they can be differentiated or used for assessment. Homework ideas are also provided.
The teaching notes include a range of downloadable worksheets, which are provided as both PDF and Word files so that you can edit them as you choose.
You will also find answers to the Coursebook and Workbook questions at the end of this resource.
x At the start of each set of teaching notes, there is a Learning plan table that includes the syllabus learning objectives, learning intentions and success criteria that are covered in the chapter. You may wish to use these in your lesson planning.
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ECONOMICS FOR CAMBRIDGE IGCSE™ AND O LEVEL: TEACHER’S RESOURCE
About the syllabus
The information in this section is taken is based on the Cambridge International Education syllabus. You should always refer to the appropriate syllabus document for the year of examination to confirm the details and for more information. The syllabus document is available on the website: www.cambridgeinternational.org
The Economics syllabus covers a range of topics. Our Cambridge IGCSE™ Economics resources are designed to provide a detailed and engaging course that covers the syllabus and provides both support and challenge for students.
Students are required to demonstrate three assessment objectives in their examinations (knowledge and understanding, analysis and evaluation). The syllabus provides students with the opportunity to learn how to demonstrate each of these objectives. Students are encouraged to think about the syllabus content in relation to real world businesses.
ECONOMICS FOR CAMBRIDGE IGCSE™ AND O LEVEL: TEACHER’S RESOURCE
About the assessment
The information in this section is taken is based on the Cambridge International Education syllabus. You should always refer to the appropriate syllabus document for the year of examination to confirm the details and for more information. The syllabus document is available on the website: www.cambridgeinternational.org
Students take two papers which are externally assessed. Both papers can assess content from the entire syllabus. Paper 1 is 1 hour long and assesses A01 and A02. Paper 2 is 2 hours long and assesses all three assessment objectives:
• AO1 Knowledge and understanding: demonstrate knowledge and understanding of economic definitions, formulas, concepts and theories, and use economic terminology
• AO2 Analysis: select, organise and interpret economics data and information, apply economic analysis to written, numerical, diagrammatic and graphical data, and analyse economic issues, identifying and developing links and relationships.
• AO3 Evaluation: evaluate economic information, data and arguments, and recognise that economic decisions have uncertain outcomes.
Paper 1 is worth 30% of the qualification. This paper is made up solely of multiple-choice questions.
Paper 2 is worth 70% of the qualification. There are two sections, A and B, from which students answer one compulsory question in Section A and three questions from a choice of four in Section B.
1 The nature of the basic economic problem
Teaching plan
1.1 Finite resources and in nite wants 0.5
•De ne and give examples of the basic economic problem.
1.2 Resource allocation decisions 0.5
•Understand and explain the key resource allocation decisions.
Coursebook:
Chapter 1 Practice questions 1, 2 and 5a
Teacher’s Resource: Worksheet 1.1 questions 1 and 2
Workbook: Chapter 1 Activities 1–3 and 4a; Practice question 1
Coursebook: Chapter 1 Activity 1.1; Practice question 3
Teacher’s Resource: Worksheet 1.1 questions 2 and 3
Workbook: Chapter 1 Activity 4b
1.3 Economic goods and free goods 0.5
•Understand the difference between economic goods and free goods.
Coursebook:
Chapter 1 Activity 1.2; Practice questions 4 and 5b
Teacher’s Resource: Worksheet 1.1 question 4
Workbook:
Chapter 1 Activity 4c; Practice question 2
BACKGROUND KNOWLEDGE
Section 1: The basic economic problem
• No background knowledge should be assumed.
• However, it would be useful for students to understand the difference between goods and services, the difference between needs and wants, and the meaning of resources. Check that students understand these terms before beginning activities.
• You could begin with a discussion about what students think is involved in studying economics before beginning the course.
LANGUAGE SUPPORT
• One of the biggest language challenges facing students is understanding that the same economics concept can be called by different names. For example, ‘resources’ can sometimes be called ‘factors of production’, and ‘scarce’ is synonymous with ‘unlimited’. It is important to point out synonyms to students when they occur.
• Advise students to start compiling their own economics dictionary. This will support understanding of economic terminology.
• In economics, there are relatively few certainties, and so economists tend to use ‘might’ or ‘could’ rather than ‘will’ when analysing an issue. Encourage students to refrain from talking in absolute terms in economics lessons; instead prompt them to use qualifying words.
1.1 Finite resources and in nite wants and 1.2 Resource allocation decisions and 1.3 Economic goods and free goods
LEARNING PLAN
• nite
SAMPLE
•economic and free goods
In these topics, students will:
•de ne and give examples of the basic economic problem
•explain the concept of scarcity
•give examples of the basic economic problem in the context of consumers, workers, producers/ rms, governments
•Students can de ne the basic economic problem.
•Students can explain the concept of scarcity.
•Students can give examples of the basic economic problem.
•Students can explain the key resource allocation decisions.
CONTINUED
Syllabus content
Learning intentions
•explain the key resource allocation decisions answering the three basic economic questions of what to produce, how to produce and for who to produce
•explain the difference between economic goods and free goods.
Common misconception
Misconception
Students often assume that economists de ne a free good as one that does not cost any money to buy it.
Starter ideas
How to elicit
Ask students to de ne the term ‘free good’.
Success criteria
•Students can explain the difference between economic goods and free goods.
SAMPLE
How to overcome
Explain that free goods are goods that take no resources to make. Their price is irrelevant. Main teaching idea 3 will help to reinforce this.
1 ‘Why study economics?’ (15 minutes)
Learning outcome: To understand the basic economic problem.
Resources: None.
Description and purpose: The purpose of this activity is twofold: it is a good icebreaker for a new class, and it also allows you to follow on the activity by introducing the rst concept in economics – the basic economic problem. Ask each student to say who they are and one or two reasons why they chose to study economics. This will give you an excellent appreciation of each student’s needs, as well as providing them with some knowledge about each other. Then begin the rst session with: ‘The fundamental problem that economics is trying to solve is the problem of scarcity.’
What to do next: Highlight common themes and connections that may relate to the concept of scarcity, even if students did not explicitly mention it in their responses. For example, if a student mentions an interest in understanding resource allocation or making informed nancial decisions, emphasise how these topics relate to scarcity. Provide a clear de nition of scarcity and initiate a whole-class discussion about real-life examples of scarcity that students may have encountered.
2 ’What would you buy?’ (20 minutes)
Learning outcome: To understand the concept of scarcity.
Resources: Paper and pens.
Description and purpose: The purpose is to illustrate the idea of ‘unlimited wants’. Inform students that they have an unlimited budget to spend over the next 48 hours. They need to make a list of all the things that they would buy. After 5 minutes, ask students to feed back on their selections. It is likely that students will have very long lists, and you can make the point that this is likely to be representative of everyone in the world. Next, pose the hypothesis: it is right to assume that people have unlimited wants.
What to do next: This is a great opportunity for students to take part in their rst (small) economic debate. Divide students into two sides: those who will argue that people have unlimited wants, and those who will argue that this is not true. For example, they may argue that some people can make do with relatively few consumer goods, and while people may want a lot of things, their wants are not truly unlimited, or that it depends on the society in which they live.
Main teaching ideas
SAMPLE
1 Ice cream (30 minutes)
Learning outcomes: To understand the concept of scarcity, and to explain the basic economic problem. Resources: None.
Description and purpose: Create a short scenario in which scarcity plays a central role. An example is provided. As you read out the scenario, ask students to actively listen and carefully consider ideas of scarcity, decision-making and trade-offs relating to the scenario. Conclude by asking for their thoughts and allow questions to seek clari cation on any aspects of the scenario or economic concepts discussed.
Scenario example:
Once upon a time, in a small town, there was an ice cream shop. The shop was known for its delicious avours. The people of the town loved the ice cream so much that they queued outside the shop every day. But the shop had just one ice cream machine, which could only produce a limited number of ice cream cones each day. The people of the town were delighted when the shop opened, but they soon faced a dilemma. The demand for ice cream was so high that the shop couldn’t produce enough for everyone. As the queue grew longer every day, the people of the town found themselves facing the reality of scarcity: they would need to start making choices. Each one of them knew that if they got their ice cream that day, there was one less for the rest of the town, and vice versa.
Differentiation ideas:
•Support: Vocabulary preview. Introduce key economic terms, such as scarcity, choice and trade-off, before reading the scenario. Provide simple de nitions and examples to familiarise students with the vocabulary they will encounter.
•Challenge: Facilitate a discussion on how the ice cream dilemma mirrors real-life situations where choices must be made because of limited resources. Encourage students to share personal experiences or examples they can relate to, or use the idea of trade-offs to introduce the idea of opportunity cost (see Chapter 3).
Assessment ideas: Students create their own scenario or draw pictures of their scenario (comic strip). Alternatively, students produce a written response in which they explain their understanding of scarcity and the basic economic problem, using the ice cream dilemma as an illustrative example.
2 Economic decision-making game (60 minutes)
Learning outcome: To understand the three key resource allocation decisions.
Resources: Paper and pens, Worksheet 1.1: The basic economic problem.
Description and purpose: This is a group task that aims to encourage students to think about the three key resource allocation decisions.
•Setup: Divide the class into small groups.
•Introduction: Begin by summarising the three fundamental economic questions and their importance in guiding economic decisions. Emphasise that economies are dynamic and constantly evolving.
•Scenario presentation: Introduce a hypothetical scenario. Each group should imagine that they are inhabitants of a small island with limited resources, and they need to decide on the production and distribution of goods and services.
•Question 1: What to produce? (15 minutes): Instruct each group to discuss and decide on three goods or services they want to produce on their island. Encourage them to consider the preferences and needs of the island’s inhabitants.
•Question 2: How to produce it? (15 minutes): Once the groups have decided on what to produce, challenge them to determine the methods and resources they will use for production. Discuss factors like land, labour and capital goods (machinery).
•Question 3: Who should receive the goods and services being produced? (15 minutes): Ask groups to discuss how the produced goods and services will be distributed among the island’s population. Encourage them to consider fairness and ef ciency, and to highlight any potential challenges.
•Group presentation (10 minutes): Each group presents their decisions to the class. They should explain their choices for production, methods of production and distribution strategies. This encourages students to articulate their understanding of the three economic questions.
SAMPLE
Differentiation ideas:
•Support: Place students who require more support in groups with con dent students. Check in with each group to ensure everyone is taking part.
•Challenge: Students consider how these questions would be answered in different countries in the real world.
Assessment ideas: The group presentation can be used as a main form of assessment for this task. Alternatively, students now answer questions 1, 2 and 3 on Worksheet 1.1.
3 Free good or economic good? (20 minutes)
Learning outcome: To understand what is meant by the terms ‘free good’ and ‘economic good’.
Resources: Whiteboard or handout displaying the following list of goods: sunlight, smartphone, car, rainwater, public park, air, gravity, open-source software; Worksheet 1.1: The basic economic problem.
Description and purpose: The purpose is to demonstrate whether students understand the concept of a free good. Show students the list of goods outlined in Resources. Ask them to select the goods that they consider to be free goods. Support their choices by clarifying that the list includes four free goods (sunlight, air, gravity, rainwater) and four economic goods (smartphone, car, public park, open-source software), even if two (public parks and open-source software) are free at the point of use.
Use responses to establish the correct de nitions of a free good and an economic good on the whiteboard. Explain that although public parks and open-source software are free at the point of use, they are not considered free goods because they took resources to make.
Differentiation ideas:
•Support: Begin the activity with a brief discussion about the concept of free goods and economic goods. Provide a simple de nition and examples before presenting the list. Or encourage students to share their initial thoughts on what distinguishes a free good from an economic good before the activity starts.
•Challenge: Students consider some other goods (which are not completely obvious), such as public beaches, social media platforms and community gardens.
Assessment ideas: Students answer question 4 on Worksheet 1.1.
Plenary idea
1 Economics in context (15 minutes)
Learning outcome: To consider the key resource allocation decisions in a new context.
Resources: Coursebook Chapter 1 Economics in context (‘Stuck in traf c’).
Description and purpose: Use the Economics in context real-world study on traf c congestion in India to check for understanding of the key learning intentions of this chapter. In pairs, students read the text and discuss the questions. Then, pose the following three questions as a summary for the chapter:
•How does a three-hour traf c jam in Panathur re ect the concept of scarcity?
•What resource allocation decisions might governments or communities face when dealing with traf c congestion?
•Should roads be considered free goods?
Assessment ideas: Use the questions as an exit ticket. Students write down their answers on a sheet of paper as they leave the lesson. Either mark them or read them before the start of the next lesson to check that understanding is satisfactory.
Homework ideas
•Students start their economics dictionary (see Language support).
• Students start their notebook for the year and show you the notes that they have taken from the rst chapter of learning.
SAMPLE
Worksheet 1.1
The basic economic problem
1 Read the following news article about the fictional country of Bestland. Then answer the questions below.
At first glance, the country of Bestland is a land of plenty, bustling with markets and skyscrapers. However, a closer look reveals some serious issues. Rural families often struggle to meet their basic needs. People living in the city face high living costs and need to make tough choices about their spending. The government is working to share money more fairly, but the demand for goods and services is frequently greater than what is available.
a Explain in your own words what the economic problem is.
b How does the economic problem impact rural workers in Bestland?
c How could the shortage of goods and services affect producers?
d What efforts has the government made to address the economic problem in Bestland?
2 Give an example from your own experience, or from the ‘Economic decision-making game’, where you had to make a trade-off. How did scarcity influence this decision?
3 Which one of the following is not one of the three key resource allocation questions? Tick one box.
A What to produce
B When to produce it
C How to produce it
D Who is to receive the products produced
4 a Define the following terms: Free good ....................................................................................................................................................... ....................................................................................................................................................... Economic good
b Complete the following sentences: A carpet is an economic good because Sunlight is a free good because
2 Factors of production
Teaching plan
Topic Approximate number of learning hours
2.1 The factors of production 1
Learning content
•Name the factors of production and give examples of each.
2.2 Rewards for the factors of production 0.5
2.3 Causes of changes in the quantity and quality of the factors of production 1
LANGUAGE SUPPORT
•List the rewards to the factors of production.
•Discuss the various changes.
Resources
Coursebook:
Chapter 2 Activity 2.1; Practice questions 1, 2 and 6a
Workbook:
Chapter 2 Activities 1, 2, 3 and 4; Practice questions 1–5
Coursebook:
Chapter 2 Activity 2.2; Practice question 4
Coursebook:
Chapter 2 Activities 2.3, 2.4 and 2.5; Practice questions 3, 5 and 6b–c
Teacher’s Resource: Worksheet 2.1
Workbook: Chapter 2 Activity 5
• It is important to emphasise at this early stage that students must learn to speak like economists. This means using technical ter minology and referring to speci c models. Encourage students to take time to clearly de ne and understand key terms such as land, labour, capital and entrepreneurship. Capital may have colloquial meanings as well as a technical economic one.
• Encourage students to produce their own ashcards. For this chapter, they should write each factor of production on one side and a brief description or example on the other. They can then use their ashcards for self-quizzing to reinforce learning.
2.1 The factors of production and 2.2 Rewards for the factors of production and 2.3 Causes of changes in the quantity and quality of the factors of production
LEARNING PLAN
SAMPLE
•factors of production and their rewards
•quantity and quality of factors of production
In these topics, students will:
•de ne the factors of production: land, labour, capital and enterprise
•identify the rewards to the factors of production: rent, wages, interest and pro t
•analyse the causes of changes in the quantity and quality of the factors of production.
Common misconceptions
Students often believe that the term ‘land’ just refers to elds and soil, whereas it refers to all naturally occurring resources.
Students often believe that money is a factor of production.
Students may not understand why interest is the reward for capital.
Ask students to give examples of land.
Ask students to explain the role of money in the economy.
•Students can de ne the factors of production: land, labour, capital and enterprise.
•Students can give examples of the factors of production.
•Students can identify the rewards to the factors of production: rent, wages, interest and pro t.
•Students can analyse the causes of changes in the quantity and quality of the factors of production.
Ask students what they think interest refers to in this context (the cost of borrowing and reward for saving). You might get de nitions such as ‘the amount added on to a loan’.
Write a list of things on the whiteboard that would come under the heading of land, such as oil, sunlight, metal ores, livestock.
Provide students with a de nition of money as a medium of exchange or a store of value. It is neither a factor of production nor a good/service, so it has no role in the basic economic problem.
Explain that money is often borrowed, usually from banks. This is referred to as ‘ nancial capital’ and is used to purchase physical capital. Therefore, we state that interest is the reward for capital. The money people put into savings accounts is lent out, and for this they receive interest.
Starter ideas
1 ‘How is it made?’ (10 minutes)
Learning outcome: To identify the factors of production.
Resources: Screen to play videos from, e.g., interactive whiteboard, projector; video clips of products and how they are made (e.g., search YouTube for videos about how to make frozen pizzas, smartphones, honey) or print images of well-known products and display them on the whiteboard.
Description and purpose: Begin by explaining the four factors of production. Then either show video clips of things being made or images of well-known products. Ask students to describe the production process and list all the things that went into the production of the good.
SAMPLE
What to do next: Students categorise each of the inputs under the four headings: land, labour, capital and enterprise. Conclude with a class re ection. Ask: ‘Why is it important to understand the factors of production in these scenarios? How do these factors contribute to the creation of goods and services?’
2 Entrepreneurship (15 minutes)
Learning outcome: To understand what is meant by the ‘enterprise’ factor of production.
Resources: Coursebook Chapter 2 Economics in context (‘Taking a risk’), whiteboard or ip chart.
Description and purpose: The purpose is to introduce the idea of entrepreneurs and the factor of production known as ‘enterprise’ or ’entrepreneurship’. Read together the Economics in context realworld study about the entrepreneur Nguyen Thi Phuong Thao. Facilitate a group discussion based on the questions posed.
What to do next: Students read Economics in context again, this time on their own. Ask them to re ect individually on the entrepreneurial traits exhibited by Nguyen Thi Phuong Thao. Students then identify at least three key traits (qualities) and provide examples from Economics in context to support their observations. Conduct a class brainstorming session where students share their re ections on the traits of an entrepreneur. Create a list on the board or a ip chart, highlighting common traits mentioned by students.
Main teaching ideas
1 Photograph challenge (30 minutes)
Learning outcome: To understand the concept of scarcity, and to explain the basic economic problem. Resources: Coursebook Activity 2.2.
Description and purpose: Use Coursebook Activity 2.2 towards the end of the lesson. The purpose is to reinforce the correct de nitions and examples for each factor of production. Students work in pairs complete the table in Activity 2.2. They should include a photograph for each of the factors of production. When they have completed the activity, facilitate a summary discussion: ‘What have you learned from the activity about the key features of the four factors of production?’
Differentiation ideas:
•Support: To facilitate collaborative decision-making, students work in pairs or small groups to discuss individual factors of production.
•Challenge: Students add a column to the table titled ‘Non-examples’. This should help them to understand the concept of scarcity by contrasting it with something that does not t the de nition. For example, money is not an example of capital. Students should justify their selection.
Assessment ideas: The photographs are the main form of assessment. Students should aim to capture images that best illustrate each factor of production, and in so doing demonstrate that they understand the key concept. You could offer a small prize for the photograph that best re ects each factor of production.
2 Entrepreneurs (60 minutes)
Learning outcome: To explain the role of the entrepreneur in the organisation of the factors of production.
Resources: Devices with internet access.
Description and purpose: Students research an entrepreneur of their choice, for example:
•Kiran Mazumdar-Shaw (Biocon)
•Tony Fernandes (AirAsia)
•Naseema Kapadia (3i Logic)
•Shahnaz Husain (Shahnaz Herbals)
•Aisha Pandor (SweepSouth)
Follow with a class discussion on the role that entrepreneurs play in the organisation of the factors of production in the 21st century. Students could also be asked to identify the possible risks and rewards each individual faces as an entrepreneur.
Differentiation ideas:
•Support: Give your own short presentation on an entrepreneur. This will show students what you would like to see them produce.
•Challenge: Ask students to turn their presentation into a short video or podcast.
Assessment ideas: Assess students on the quality of their presentations based on the quality of the research and information in the presentation as well as clarity of delivery and engagement with audience.
3 Research (30 minutes)
Learning outcome: To understand the rewards to factors of production, including wages, rent and interest, and to develop research skills to gather and analyse economic data for a speci c country.
Resources: Devices with internet access.
Description and purpose: This activity should deepen students’ understanding of the rewards to factors of production in different countries. Students choose a speci c country (or a selection of countries) and research key economic indicators, including average wages, rent and interest rates. This should enable them to understand how abstract concepts apply in the real world by seeing how factors vary globally.
Differentiation ideas:
•Support: Provide students with a list of reputable sources or websites where they can nd reliable economic data, and allow them to work in pairs or small groups, which leads to collaborative learning and peer support.
•Challenge: Encourage students to analyse historical trends and their potential impact on factors of production. Students may also compare their chosen country’s economic indicators with those of another country, and explore the reasons for any signi cant differences.
Assessment ideas: Students create a presentation summarising their research ndings. The presentation should include key data points such as average wages, rent and interest rates for the chosen country.
Plenary idea
1 Scenario cards (15 minutes)
Learning outcome: To consider the causes of changes in the quantity and quality of the factors of production in a new context.
Resources: Pre-prepared scenario cards, each describing a change in the quantity or quality of factors of production (one set per group):
A new robotic system is introduced in the agriculture sector, greatly reducing the need for manual labour.
A major natural disaster damages several manufacturing factories in a key industrial region.
Changes to tax laws mean that several innovative startups emerge
SAMPLE
The government increases its spending to improve education and skills development programmes.
There is a surge in demand for renewable energy sources, leading to increased investment in the production of solar panels and wind turbines.
Description and purpose: This activity will help to reinforce students’ understanding of the causes of changes in the quantity and quality of the factors of production through a short and engaging game. Organise students into groups of ve (or fewer if necessary). Students number themselves 1 to 5. Give each group a set of shuf ed scenario cards that describe changes in the quantity or quality of factors of production (see Resources). Place the cards face down. Student 1 picks up the top card and reads it aloud. Student 1 starts the discussion by stating how the scenario affects the factors of production in that industry. They must speak in full sentences and use speci c terms, such as ‘capital goods’. Others in the group can add further comments to the discussion (remind everyone to be respectful). Repeat the process for students 2 to 5. The activity has ve cards and the total time is 15 minutes, so it is anticipated there will be 3 minutes per discussion.
Assessment ideas: This is a great opportunity for formative assessment. Check in with each group and listen to the discussions. Ensure that students are using technical language, and correct where necessary.
Homework idea
•Students complete Worksheet 2.1: Factors of production, which aims to assess comprehension of the learning intentions by evaluating students’ understanding of how the factors of production apply to real-world scenarios. It includes basic tasks that help to check understanding, but there is also an interesting real-world study on solar power in Germany that could be used for debate in the next lesson.
1 Complete the word grid using the clues below.
Across
1 Physical resources such as machinery and tools. (7)
5 Land – an example of natural resources. (7, 4)
7 The skill of an entrepreneur. (10) Down
2 Another term for human resources. (6)
3 The reward for being an entrepreneur. (6)
4 The reward for providing labour. (4)
6 The reward for owning land. (4)
2 Link each government policy with its intended aim to increase the quantity or quality of the factor of production. One has been done for you.
Policy Aim
Reduce taxes on profits
Reduce interest rates
Education and training schemes
Increase use of fertilisers
Improve attitude towards women in the workforce
Land reclamation
Advances in technology
Improved healthcare
Quantity of capital
Quality of capital
Quantity of labour
SAMPLE
Quality of labour
Quantity of land
Quality of land
Quantity of entrepreneurship
Quality of entrepreneurship
3 Read the following sentences about capital and circle the correct phrase in each case
a Capital is any manufactured / natural good used to produce other goods and services.
b Capital includes offices, factories, machinery, railways and money / tools, for example.
c Capital is also referred to as capital goods and consumer / producer goods.
d Capital goods are not wanted for their own sake but for what they can consume / produce.
e In contrast, consumer goods, such as food, clothing and entertainment / artificial intelligence are wanted for the satisfaction they provide to their owners / makers.
4 Read the real-world study below. Then answer the questions that follow. Germany stands out globally in solar energy. The country is making major progress towards an energy future that is more sustainable and better for the environment. As of 2023, Germany has installed enough solar infrastructure to generate 50 gigawatts (GW) of electricity. That is around 200 million solar panels. The solar energy industry has benefited from government policies such as guaranteed prices for sellers of solar energy and subsidies. Subsidies are payments made by the government to companies that reduce their costs of production. With this money, the solar industry has created numerous jobs that will contribute to the country’s economic well-being. Recent statistics show that nearly 80 000 people are employed in the solar energy sector in Germany.
a Identify one example of land, labour and capital.
Land: ............................................................................................................................................
Labour: ........................................................................................................................................
Capital: .........................................................................................................................................
b Identify one policy measure that the German government has used to increase the quantity of those factors of production.