Production of Goods and Services · SHS2 Economics

Lesson notes

Learning Objectives

Indicator: 2.2.1.LI.2 - Apply the concept of production to calculate Total Product (TP), Marginal Product (MP) and Average Product (AP)

By the end of the lesson, learners can:

Define Total Product, Marginal Product and Average Product in their own words using real production examples.
Calculate Total Product from given labour and output data.
Calculate Marginal Product using the formula MP = change in TP / change in labour.
Calculate Average Product using the formula AP = TP / units of labour.
Explain the relationship between TP, MP and AP using a worked production schedule.

Sign in with your phone number to read the full note and download the GES plan - free.

Sign in with phone number

Curriculum details

Strand: Firms' Innovative Decision Making (Strand 2)
Sub-strand: Production of Goods and Services (2.1)
Content standard: 2.2.1.CS.1 - Apply knowledge and understanding of production to pricing of goods. 2.2.1.LO.1 Use information gathered from the environment to determine the time periods, TP, AP, MP, labour and capital-intensive methods and the cost of production. 2.2.1.LO.2 Establish the relationships among Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR).
Indicator: 2.2.1.LI.2 - Apply the concept of production to calculate Total Product (TP), Marginal Product (MP) and Average Product (AP)
Suggested placement: Semester 1, Week 10 (Week 10 of the year)
Our suggestion, laid out in curriculum order across three terms of twelve weeks. NaCCA does not fix the week, so follow your school's scheme of learning.
Source document note: The official curriculum document has a fault in this entry, so the curriculum text above is transcribed exactly as printed:

indicator text - p.68 the document prints the learning-indicator code as "2.2.1.LI 2", with a space where the separator before the final digit belongs
core competencies - p.66 the document sets part of this text in a Calibri subset with no ToUnicode map, so the text layer reads as Latin Extended letters; the wording stored here was read off a 150 dpi render of printed page 66 and cross-checked against a letter-for-letter decode
core competencies - p.67 the document sets part of this text in a Calibri subset with no ToUnicode map, so the text layer reads as Latin Extended letters; the wording stored here was read off a 150 dpi render of printed page 67 and cross-checked against a letter-for-letter decode
Curriculum reference: NaCCA curriculum document, p. 68

Exemplars (from the NaCCA curriculum)

Problem Based Learning: Learners form a mixed ability and gender groups to calculate Total Product (AP), Marginal Product (MP) and Average Product (AP)
Assessment (2.2.1.AS.2). The document marks these depth-of-knowledge levels for this indicator: Level 4 Extended critical thinking and reasoning.
Teaching and Learning Resources:
- Pen
- Exercise books
- Computer projectors markers
- White board
- ICT Lab
- Microsoft PowerPoint