SCHEMES OF WORK FOR SECOND TERM SS 2 ECONOMICS

WEEKS
1. Production Possibility Curve
2. Concept of Cost and Revenue Concept
3. Labour market (Supply and demand for labour)
4. Unemployment
5. Market structure
6. Market Structure
7. Mid term break
8. Industries In Nigeria
9. Location Of Industry
10. Location Of Industry
11. REVISION
12. EXAMINATION

LESSON PLAN FOR THE FIRST WEEK ENDING 9/01/262025

Periods Sub-topics Duration

Topic: 1 Total, Average andmarginal products 40mins

Production Mobility of labour

 possibility curve 11
Period 1
School: Marvel International School, Ughelli, Delta state
Subject: Economics
Topic: production possibility curve
Class : SS2
Age: 15years +
Duration: 40minutes
Sex: Boys and girls
Date:
ENTRY BEHAVIOR: The students are ask some questions on their previous class on population
PREVIOUS KNOWLEDGE- The students had been given some basic knowledge on population
BEHAVIOURAL OBJECTIVES: At the end of class, the students should be able to
Define Production possibility curve
Draw and explain the production possibility curve
Explain the concept of average, total and Marginal products
Give two importance of variable proportion
INSTRUCTIONAL MATERIAL – Charts, maps and pictures
Instructional procedure
Step1 Introduction and set induction
Mode: Individual
Teacher's activity: revises the previous work on population
StepII: Concept definition
Mode: Individual
Teacher's activity: the teacher introduces the topic by writing it on the board " Labour Force" teacher
goes further to explain the meaning of labour force and mobility.
Students activity: Answer some questions on their previous class
Step 3: Factors affecting the labour force and mobility of labour
Teacher activity: List the factors
Students activity: PY attention
Step4: Teacher summaries the lesson by looking at the main points of the topic
Evaluation: The teacher asks the following questions to the students
1. Define Production possibility curve
2. Draw and explain the production possibility curve
3. Explain the concept of average, total and Marginal products
 4. Give two importance of variable proportion
Board summary
The production possibility
The production possibility curve is also known as the Production Possibility Boundary
(PPB). It is a graph or curve showing the possible combinations of different commodities
that can be produced in a given economy, if all the available productive resources are
efficiently utilized. It is also the graphical illustration of all the possible combinations of
two or more types of commodities which a society can produce, using a given quantity of
resources.
Example, the production possibility curves for the production of cattle and motor vehicles in
South Africa.
Production Possibility Table for The Production of Cattle and Motor vehicles by South Africa
Possible Head of no of
combination
motor
cattle vehicles

A 200 0

B 170 30

C 100 70

D 80 130

E 40 150

F 0 180

The table shows the alternative open to South Africa to substitute the production of cattle for
vehicle on a monthly basis, assuming a given state of technology and a given total of resources.
production possibility curve

NTERPRETATION OR POINTS TO NOT FROM THE GRAPH

Points A to E on the graph indicate efficient use of resources. At points F and G (outside the
curve), production is not feasible. Production of these points is not feasible due to the limited
resources and technology.
At point H and l (inside the curve), production is feasible. It represents where resources are not
efficiently utilized. The downward slope of the PPC indicate that there is an opportunity cost of
producing more of one type of commodity and less of the other due to limited resources and
technical know how. It also shows that the PPC has a downward slope from left to right,
indicating that there is an opportunity cost of production more of one type of commodity. The
cost is measured in terms of quantity forgone of the other types of commodities.
Conclusion: Teacher concludes the lesson by checking out the students notes and marking them
Assignment: Read up the concept of average, total and Marginal products for our
next class.
Period 2
Relationship between production possibility curve and opportunity cost
Opportunity cost is the wants that are left unsatisfied in order to satisfy another
more pressing need. The production possibility curve involves sacrifice in the
production of one commodity in order that another one can be produced. The
production possibility curve is directly connected with opportunity [Link]
downward slope of the PPC shows that there is an opportunity cost involved in the
production of more of a commodity. This cost is measured in terms of quantity of
another commodity forgone or sacrificed.
Concepts of total average and marginal productivity
Total product(TP) : this is the total quantity of commodities produced at a particular time as a
result of the combination of all the factors of production.
TP=AP×Labour

0
2) Average product(AP) : this is defined as the per unit of the variable factor(Labour or capital)
employed.

. AP= Total product(output) ÷ No. of Labour (or capital) employed.

3) Marginal product(MP) : This is the addition to total output brought about as a result of the
employment of an additional unit of a variable factor. MP= changes in TP ÷ Changes in
variable factor.

Table for Total, Average and Marginal Productivity

The productivity concept can be better explained with reference to the table of the

Law of Diminishing Returns below.

Unit of Land No of Men Total Product Average Product Marginal Product

 ( Fixed factor ) Employed
( Variable factor )

4 Hectares 1 15 15 15

4 Hectares 2 32 16 17

4 Hectares 3 54 18 22

4 Hectares 4 72 18 18

4 Hectares 5 85 17 13

4 Hectares 6 90 15 5

4 Hectares 7 84 12 -6

From the table above, the TP when four (4) men were employed was 72 units.
From the table above, the (A.P) at variable factor of six (6) workers is 90 / 6 = 15
From the table above, the MP at a variable factor of five (5) is calculated as
MP = (85-72) /(5 – 4) = 13/1 = 13

Period 3

Relationship between total product, Average product and marginal product

The relationship between Total Product (TP), Average Product (AP) and Marginal Product (MP)
can be demonstrated by a graph as follows
Graph for Total, Average and Marginal Products

90
 Outputs

85

TP
72
I II III

54
AP
32

15

0 1 2 3 4 5 6 7 8 9

Units of labour MP

TP, AP, and MP rise initially. TP rises sharply and curves at the maximum when MP is zero. TP
declines after MP =0 and MP assumes negative values.
Law of variable proportion

The law of variable proportion also known as Law of Diminishing marginal

productivity states that if increasing quantities of one factor are combined with a
fixed supply of others in production, a point is reached from which each extravariable
factor added yields less and less addition to the total output. That is more and more
of the variable factor is combined with a fixed quantity of other factors, its average
product and marginal product will begin to decrease.

. Types of returns

1) Increasing returns: At this stage, more variable factors and Labour are used, total
product begins to increase, the average product increases to its maximum, while the
marginal product strains a maximum and then decreases

2) Constant returns: at this stage, total product rise to its peak, the average product
begins to fall and the marginal product reduced towards zero.

3) Diminishing returns: this is when both total and average product fall towards zero,
while marginal product becomes negative, having fallen below the horizontal axis.

Importance of the law of variable proportions

1) It helps entrepreneur to determine the optimal combination of factors to achieve this
objectives

2) Its very useful in fixing work wages

3) It is important to understand short -run cost curves and short -run theory of the
firm.

Conclusion: Teacher concludes the class after marking the students notes
Assignment

1. Copy and complete the table below

Unit of land No of Men Employed Total Product Average product Marginal Product

1 1 1 1 -

1 2 6 3 5

1 3 20 6.7 E

1 4 35 C 15

1 5 40 8 5

1 6 A 7 2

1 7 42 6 F

1 8 40 5 -2

1 9 B D -4

1 10 27 2.7 G

a) Calculate the estimated missing letters A-G

b) How many men were employed when marginal output is at the maximum?
[Link] the graph of the completed table showing the TP, AP , and MP . ( The use of a graph
sheet is necessary )
LESSON PLAN FOR THE FIRST WEEK ENDING 9/01/262025

Periods Sub-topics Duration

Topic: 1 Labour force 40mins
Labour Force Mobility of labour

11

Period 1

School: Marvel International School, Ughelli, Delta state

Subject: Economics

Topic: Labour Force

Class : SS2

Age: 15years +

Duration: 40minutes

Sex: Boys and girls

Date:

ENTRY BEHAVIOR: The students are ask some questions on their previous class on population

PREVIOUS KNOWLEDGE- The students had been given some basic knowledge on population

BEHAVIOURAL OBJECTIVES: At the end of class, the students should be able to

1. Explain the meaning of labour force
2. Give factors that affect labour force
3. Explain mobility of labour
4. List the factors that affect the mobility of labour
INSTRUCTIONAL MATERIAL – Charts, maps and pictures

Instructional procedure
Step1 Introduction and set induction

Mode: Individual

Teacher's activity: revises the previous work on population

StepII: Concept definition

Mode: Individual

Teacher's activity: the teacher introduces the topic by writing it on the board " Labour Force"
teacher goes further to explain the meaning of labour force and mobility.

Students activity: Answer some questions on their previous class

Step 3: Factors affecting the labour force and mobility of labour

Teacher activity: List the factors

Students activity: PY attention

Step4: Teacher summaries the lesson by looking at the main points of the topic

Evaluation: The teacher asks the following questions to the students

1. Explain the meaning of labour force
2. Give factors that affect labour force
3. Explain mobility of labour
4. List the factors that affect the mobility of labour
Board summary
LABOUR MARKET
Labour market is defined as a market which workers and employers are brought into contact and
conditions of work are decided. It is made up of people who are looking for job, employers and
government.
THE CONCEPT OF LABOUR FORCE
Labour force can be defined as the total number of people of working age in a country who are
gainfully employed and those who fall within the age bracket, capable and willing to work by
law but have no work to do in a country at a particular period of time.
Labour force is the working population and it comprises all persons who have jobs and who
are seeking for jobs in the labour market. They are between the age of 18 years and 60 years.
Working population varies from one country to another.
 FACTORS AFFECTING THE SUPPLY OF LABOUR OR SIZE OF LABOUR FORCE
(WORKING POPULATION)
1. THE SIZE OF POPULATION: The higher the size of the population, the higher the
working population and vice versa.
2. OFFICIAL SCHOOL LEAVING AGE: If the school leaving age is low, the proportion
of labour force will be high and vice versa
3. OFFICIAL AGE OF RETIREMENT: If the age of retirement is raised the supply of
labour will tend to increase because more people will be available for work
4. LEVEL OF REMUNRATION OR THE WAGE RATE: The extent of salaries, wages
and other remunerations paid to the workers determines the number of people who may
be willing to work.
5. MIGRATION: Immigration will increase and emigration will decrease the supply of
labour.

MOBILITY OF LABOUR
The mobility of labour refers to the ease with which workers or labour can move from one
occupation to another or from one geographical area to another.

TYPES OF LABOUR MOBILITY

1. OCCUPATIONAL MOBILITY OF LABOUR: This refers to the ease with which
workers can move from one job to another. For instance, a messenger can easily change
to become a cleaner or a farmer.
2. GEOGRAPHICAL MOBILITY OF LABOUR: This refers to the ease with which
workers can move from one geographical location to another.e.g Port Harcourt to Jos.
3. INDUSTRIAL MOBILITY OF LABOUR: This refers to the ease with which workers
can move within the same industry or from one industry to another.
Industrial mobility of labour has two aspect; vertical industrial mobility of labour and
horizontal industrial mobility of labour.
Vertical mobility of labour usually takes the form of promotion with the same. For
example, the Vice-Principal of a school could be promoted Principal.
 Horizontal or lateral mobility of labour takes place when a worker move from one
industry to another but still performs the same task occupies the same rank. For example,
an Accountant can leave the Star Beer factory at Aba for the textile mills at Aba.
Conclusion : Teacher concludes the class after checking and marking the
students notes
Assignment: What are the likely causes of mobility of labour

Period 2
Date:
Behavioural objectives: By the end of the lesson, the students should be able to
1. List the causes of mobility of labour
2. Explain EFFICIENCY of labour
3. List the factors that affect the efficiency of labour

Board Summary

CAUSES OF MOBILITY OF LABOUR OR FACTORS INFLUENCING MOBILITY

OF LABOUR
1. Unfavorable working condition; Marriage:Irregular payment of salaries:Promotion; Bad
management;Climate; Lack of job security; Lack of social amenities; Accommodation
problem; Political instability; Personal reasons.
THE EFFICIENCY OF LABOUR
The efficiency of labour refers to the extent or degree to which labour can be combined with
other factors of production to yield maximum output.
In other words, efficiency of labour is the ability of labour to attain higher level of output without
a reduction in the quality of output.
FACTORS DETERMINING EFFICIENCY OF LABOUR
1. Education and training; General working conditions; Health of workers and availability
of improved health facilities; The amount of incentives or remuneration given to workers;
 Efficiency of other factors of production; Degree of specialization and division of labour;
Welfare services and state of mind of the worker; Weather conditions.
Conclusion. The teacher concludes the class after checking and marking the students notes
Assignment
1. What factors do you consider likely to affect the efficiency of labour in your country
2)Distinguish between occupation and geographical mobility of labour
LESSON PLAN FOR THE SECOND WEEK ENDING 2025

Periods Sub-topics Duration

Topic: 1 Labour force 40mins
Demand supply for Mobility of labour
Labour
11

Period 1

School: Marvel International School, Ughelli, Delta state

Subject: Economics

Topic: Demand for labour

Class : SS2

Age: 15years +

Duration: 40minutes

Sex: Boys and girls

Date:

ENTRY BEHAVIOR: The students are ask some questions on their previous class on population

PREVIOUS KNOWLEDGE- The students had been given some basic knowledge on population

BEHAVIOURAL OBJECTIVES: At the end of class, the students should be able to

1. Define labour market.
2. Define labour force
3. List factors that affects the demand for labour.
4. List factor that affects the supply of labour.
5. Examine factor that determine wages.
INSTRUCTIONAL MATERIAL – Charts, maps and pictures

Instructional procedure

Step1 Introduction and set induction

Mode: Individual

Teacher's activity: revises the previous work on population

StepII: Concept definition

Mode: Individual
Teacher's activity: the teacher introduces the topic by writing it on the board " demand and
supply for Labour" teacher goes further to explain the meaning of labour force and mobility.

Students activity: Answer some questions on their previous class

Step 3: Factors affecting the labour force and mobility of labour

Teacher activity: List the factors

Students activity: Pay attention

Step4: Teacher summaries the lesson by looking at the main points of the topic

Evaluation: The teacher asks the following questions to the students

1. Define labour market.
2. Define labour force
3. List factors that affects the demand for labour.
4. List factor that affects the supply of labour.
5. Examine factor that determine wages.

Board summary

SUPPLY OF LABOUR
Supply of labour may be defined as the total number of people of working age offered for
employment at a particular time and at a given wage rate.
This supply of labour also relates to the quantity of labour.
FACTOS AFFECTING SUPPLY OF LABOUR
1. The size of population and population growth
2. The age structure of the population
3. The official school leaving age
4. Official age of entry and retirement
5. The number of people the pursue full time education beyond the normal school leaving
age
6. The number of married women who take up paid employment
7. The number of people of working ages in the country who are disable or incapacitated
8. The number of able bodied person in the country who are not willing to work
9. The number of working hours per week
10. The rate of remuneration or the wage rate
 DEMAND FOR LABOUR
Demand for labour may be defined as the total number of workers employer are willing and
ready to employ or hire at a particular time and at a given wage rate
The demand for labour relates to the quantity of human effort required by entrepreneur for
carrying out production.
The demand for labour is a derived demand
FACTORS INFLUENCING DEMAND FOR LABOUR
1. The number of industries in a country
2. The nature of industries
3. The quantity of other factors of production available
4. The price of labour or the wage rate
5. The state of employment in the economy
6. The demand for labour output and the price level within the economy.

Conclusion : Teacher concludes the class after checking and marking the
students notes

Assignment: List and explain reasons why people earn different wages

Period 2
Date:
Behavioural objectives: By the end of the lesson, the students should be able to
Examine factor that determine wages.

Board Summary

WAGES
Wages refers to payment to labour on a daily or weekly basis
Salaries refer to the payment made to labour on a monthly basis.
TYPES OF WAGES
 1. Nominal Wages: It is the actual money paid for labour in a particular period of time
2. Real Wages: This is the purchasing power of labour. Real wages refer to wages in term
of goods and services the wages can buy.

DETERMINATION OF WAGERS
a) The forces of demand and supply in a market economy. The wages of labour in a market
economy can be determined through the forces of demand and supply.
Wage rate in a competitive labour market can be determined in the following manner
i. When the supply of labour exceeds the demand, wage rate will fall
ii. When the demand for labour exceeds the supply, wage rate will rise
iii. When the demand for labour equals the supply wage rate will be favourable to
both the employer and the employee.

S
D
Wage rate (per week)
N100

0 15 30 45 60
Quantity of labour demand and supplied

b) Government activities and policies: Government institution and wages commissions set
up by the government help in determining wages, especially in the public services.
In fixing wages, the government agency or wage commission takes the following factors
into consideration.
i. Cost of living: The higher the cost of living, the higher wages are likely to be
ii. Level of productivity: The greater the level of production in the country, the
higher the wage rate.
iii. Type of occupation: The wage structure varies from one occupation to another.
FACTORS RESPONSIBLE FOR VARIATION IN WAGES
1. Differences in cost of training
2. Differences in period of training
3. Skill needed at work
4. The bargaining power of the trade union
5. Degree of risk involved in an occupation
6. The prestige attached to an occupation.

Conclusion; The teacher concludes the class after checking and marking the students
notes
Assignment

LESSON PLAN FOR THE THIRD WEEK ENDING 2025

Periods Sub-topics Duration

Topic: 1 Definition 40mins
Unemployment Types Effects and causes

11

Period 1

School: Marvel International School, Ughelli, Delta state

Subject: Economics

Topic: Unemploymen

Class : SS2
Age: 15years +

Duration: 40minutes

Sex: Boys and girls

Date:

ENTRY BEHAVIOR: The students are ask some questions on their previous class on population

PREVIOUS KNOWLEDGE- The students had been given some basic knowledge on population

BEHAVIOURAL OBJECTIVES: At the end of class, the students should be able to

1. Define unemployment.
2. dentify the types of unemployment.
3. List 4 causes of unemployment.
4. Examine the affects of unemployment.
INSTRUCTIONAL MATERIAL – Charts, maps and pictures

Instructional procedure

Step1 Introduction and set induction

Mode: Individual

Teacher's activity: revises the previous work on population

StepII: Concept definition

Mode: Individual

Teacher's activity: the teacher introduces the topic by writing it on the board "Unemploymen"
teacher goes further to explain the meaning of labour force and mobility.

Students activity: Answer some questions on their previous class

Step 3: Factors affecting the labour force and mobility of labour

Teacher activity: List the factors

Students activity: Pay attention

Step4: Teacher summaries the lesson by looking at the main points of the topic

Evaluation: The teacher asks the following questions to the students

Define unemployment.
dentify the types of unemployment.
List 4 causes of unemployment.
 Examine the affects of unemployment.

Board summary

UNEMPLOYMENT

Unemployment is defined as a situation in which persons of working age, able and willing to
work are unable to find paid employment.

Unemployment of labour occurs in the economy if there are people who are capable of working
and who are qualified by age, law, custom, and other factors to work, but who cannot find jobs.

TYPES OF UNEMPLOYMENT

1. Structural Unemployment: This is the type of unemployment which arises as a result of

changes in the pattern of demand of certain commodity. If the demand is low, it could
lead to industries reducing their workforce and this eventually results in structure
unemployment.
2. Seasonal Unemployment: This type of unemployment occurs in industries whose
production is subject to seasonal variations.
3. Voluntary Unemployment: Voluntary unemployment arises from the deliberate refusal
of labour to work, even though employment opportunities exist (and such people are fit to
work).
4. Technological Unemployment: This is a type of unemployment which results when
industries introduce capital intensive technique of production.
5. Frictional Unemployment: It is associated with switching from one job to another.
Frictional unemployment occurs in the process of search for new jobs. The time it takes
to find new jobs will cause frictional unemployment.
6. Casual Unemployment: It usually occurs with jobs of an unsettled nature or jobs which
are not permanent
7. Residual Unemployment: This type of unemployment includes all these who cannot
work due to physical or mental disabilities.
8. Cyclical Unemployment: This type of unemployment occurs during the depression or
recession stage of the business or trade cycle.
9. Disguised Unemployment: Disguised unemployment occurs if workers are not
efficiently utilized in production or if they are underemployed.
Conclusion : Teacher concludes the class after checking and marking the
students notes

Assignment: List and explain reasons why people earn different wages
 Period 2
Date:
Behavioural objectives: By the end of the lesson, the students should be able to
Examine the consequences and solutions to unemployment
Board Summary
CAUSES OF UNEMPLOYMENT
1. Economic recession
2. Changes in the pattern of demand
3. Seasonal changes in agricultural and other forms of production
4. Economic reform policies
5. Inadequate educational curricular and poor educational planning
6. Use of capital intensive methods of production
7. Rapid population growth and slow rate of economic growth
8. Physical and mental disability.

CONSEQUENCES OF UNEMPLOYMENT
1. Increase in crime rate
2. Threat to peace and stability
3. Waste of human resources
4. High rate of dependency
5. Migration

SOLUTIONS TO PROBLEMS OF UNEMPLOYMENT

1. Industrialization
2. Population control
3. Redesigning educational system
4. Proper development plans
5. Provision of social amenities

Conclusion; The teacher concludes the class after checking and marking the students notes
Assignment
LESSON PLAN FOR THE FOURTH WEEK ENDING 2025

Periods Sub-topics Duration

Topic: 1 Trade union 40mins
Unemployment Objectives and weapons

11

Period 1

School: Marvel International School, Ughelli, Delta state

Subject: Economics

Topic: Unemploymen

Class : SS2

Age: 15years +

Duration: 40minutes

Sex: Boys and girls

Date:

ENTRY BEHAVIOR: The students are ask some questions on their previous class on population

PREVIOUS KNOWLEDGE- The students had been given some basic knowledge on population

BEHAVIOURAL OBJECTIVES: At the end of class, the students should be able to

 1. Explain the trade union
2. Give the objectives of trade union
3. Give and explain the weapons used by the trade union
INSTRUCTIONAL MATERIAL – Charts, maps and pictures

Instructional procedure

Step1 Introduction and set induction

Mode: Individual

Teacher's activity: revises the previous work on population

StepII: Concept definition

Mode: Individual

Teacher's activity: the teacher introduces the topic by writing it on the board "Unemploymen"
teacher goes further to explain the meaning of labour force and mobility.

Students activity: Answer some questions on their previous class

Step 3: Factors affecting the labour force and mobility of labour

Mode: Individual

Teacher activity: List the factors

Students activity: Pay attention

Step4: Teacher summaries the lesson by looking at the main points of the topic

Mode: Individual

Evaluation: The teacher asks the following questions to the students

1. Explain the trade union
2. Give the objectives of trade union
3. Give and explain the weapons used by the trade union
Board summary

TRADE UNION

A trade union is an association of workers formed to enable the members to take collective,
rather than individual, action against their employers in matters relating to their welfare and
conditions of work. E.g. Academic staff union of universities (ASUU), National union of
petroleum and Natural Gas Workers (NUPENG) etc.
 OBJECTIVES OF TRADE UNION

1. To secure good wages for members

2. To safeguard interest of members
3. Helps in policy formulated
4. They also regulate the entry qualifications into the various professions
5. Job security
6. To secure better working conditions
efficiently utilized in production or if they are underemployed.
Conclusion : Teacher concludes the class after checking and marking the
students notes

Assignment: List and explain reasons why people earn different wages

Period 2
Date:
Behavioural objectives: By the end of the lesson, the students should be able to
Examine the weapons used by the trade union
Board Summary

WEAPONS OR INSTRUMENTS OF TRADE UNION

1. Negotiation or Collective bargaining with Employers: Collective bargaining is a process
by which a trade union and the management try to resolve their differences through joint
negotiations.
2. Threat to Strike: The trade union my give an ultimatum to the employer or to the
management informing them of an impending strike by the union if their demands are not
met within a given period of time.
3. Work to Rule: This involves the workers deliberately showing down operations in order
to press down their demands for improved conditions of services
4. Picket lines: This involves the workers refusing to work, parading and sometimes
blocking the entrance to the plant or factory
5. Strike: A strike involves workers refusing to work and staying away completely from
their place of work until their demands are met
Conclusion
Assignment
1. Explain the factors which influence the level of employment in your country
2. Distinguish between labour and labour force
3. State four reasons for difference in earning among workers.

LESSON PLAN FOR THE FIFTH WEEK ENDING

Periods Sub-topics Duration

Topic: 1 Trade union 40mins
Market structure Objectives and weapons

11

Period 1

School: Marvel International School, Ughelli, Delta state

Subject: Economics

Topic: Market Structure

Class : SS2

Age: 15years +

Duration: 40minutes

Sex: Boys and girls

Date:

ENTRY BEHAVIOR: The students are ask some questions on their previous class on population

PREVIOUS KNOWLEDGE- The students had been given some basic knowledge on population

BEHAVIOURAL OBJECTIVES: At the end of class, the students should be able to

1. Explain the concept of market and distinguish it from the market place.
2. Distinguish between perfect and imperfect market by being able to
identify their features

INSTRUCTIONAL MATERIAL – Charts, maps and pictures

Instructional procedure

Step1 Introduction and set induction

Mode: Individual

Teacher's activity: revises the previous work on unemployment

StepII: Concept definition

Mode: Individual

Teacher's activity: the teacher introduces the topic by writing it on the board "Market " teacher
goes further to Emphasizes the distinction between market and a market place.

Students activity: Answer some questions on their previous class

Step 3: Feturues of a market

Mode: Individual

Teacher activity: List the features of the market

Students activity: Pay attention

Step4: Teacher summaries the lesson by looking at the main points of the topic

Mode: Individual

Evaluation: The teacher asks the following questions to the students

Explain the concept of market and distinguish it from the market place.
Distinguish between perfect and imperfect market by being able to identify their
features

Board summary

MARKET STRUCTURE

In a physical sense, a market means a fixed place where people meet to buy and sell goods; that
is, a market place. In economics, a market can be defined as any arrangement, system or
organization whereby buyers and sellers of goods are services are brought into contact with one
another for the purpose of transacting business or for the purpose of buying and selling.

TYPES OF MARKET

Market based on types of commodities

1. Consumer goods market: It is made up of buyer and sellers of consumer goods

2. Labour market: It is made up of workers and employers and deals with the recruitment
of unskilled, semi-skilled, skilled and professional workers.
3. Capital Market and Money Market: The capital market is a financial market which deals
in long-term loans. The money market deals in short-term loans.
 4. Stock-Exchange Market: It consists of buyers and sellers of second-hand securities.
5. Foreign Exchange Market: This is a market that deals with foreign exchange transaction.

Market Based on the Channel of Distribution

1. Wholesale market and Retail market

Types of market according to Price

Perfect market and Imperfect market

PERFECT MARKET

A perfect market is a market structure in which prices are determined by the forces of demand
and supply.

CONDITIONS NECESSARY FOR A PERFECT MARKET

1. Homogeneous commodity and existence of close substitutes: The commodities bought

and sold must be homogeneous; that is identical. They must be of the same size, shape,
colour, etc.
2. Large buyer and sellers: There is a large number of buyers and sellers, each of whom
has no control over the prevailing prices
3. Free entry and exit: In this type of market, there is no barrier to entry and exit from the
industry. There is no form of restriction.
4. No preferential treatment: All buyers must be treated equally.
5. Perfect knowledge: There must be a perfect information or knowledge about the price
of the good or services.
6. Uniformity of prices: Each perfect competitor is a price taker
7. In a perfect market there are no transport costs.
8. Portable goods: The goods to be sold must be easy to carry from the place to place
9. Easy transfer of factors of production
10. At equilibrium price the marginal cost (MC) equal marginal revenue (MR).

Conclusion : Teacher concludes the class after checking and marking the
students notes

Assignment: List and explain reasons why people earn different wages

Period 2
 Date:
MClesson, the students should be able to
Behavioural objectives: By the end of the
Examine the pic determination under a perfect market AC
Price
Board Summary
S
P P=D=MR=AR
PRICE AND QUALITY DETERMINATION UNDER PERFECT COMPETITION
O R
Price and quality are determined by the interaction of the forces of supply and demand. All the
firms marekhe market are PRICE TAKERS.

SHORT-RUN AND LONG RUN POSITIONS OF A PERFECT COMPETITOR

0 EQUILIBIRIUM IN THE SHORT-RUN Quantity
The short run is the period Abnormal
in which aProfits
firm canin vary its output by changing the variable factors of
the Short-Run
production. In the short-run, a firm can make abnormal profit. Since the market determines the
prices at which goods should be sold, a firm can choose the quantity that will maximize its
profits.

Equilibrium occurs when the following conditions are satisfied,

1. Marginal cost is equal to marginal revenue (MC=MR)
2. Marginal cost should cut the marginal revenue from below at the point of equality.
In the figure below, at point b price is greater than marginal cost; therefore it is better to
increase output. The firm is at equilibrium at point S where MC=MR=P=AR. At this
point, the firm is making abnormal profit. This is
represented by rectangle PORS.

MC
EQUILIBRUM IN THE LONG- RUN
The long run is a period inPrice
which all cost varies with the level of output. During the period, firms
can adjust their scale of operation. In order to enjoy the abnormal profit, new AC
firm are likely to
enter the market with the entrance of new firms, supply will increase and price may fall if
demand remains constant, therefore both the new and old firms
b will adjust their output to the
a
new price. In the long run, the firms will make normal profit because
c all the firms will just be
P AR
covering average cost. Equilibrium will be reached when marginal cost equal to marginal
revenue and price (MC=MR=AC=AR=P=D+).
MC

Price AC Output

b
P P =D= MR= AR
AR AR -P

The firm produces Oqi and sell at OP. The producer will be making normal profit because the
average cost is tangential to average revenue.

0 q Quantity
LOSS OF A COMPETITIVE FIRM
Long-Run
A perfect firm will Equilibrium
be making loss if the Position of a Perfect
price is below the average cost.
 q1

In the figure above, at price P, the firm suffers losses since price is below the average cost. Loss
is therefore represented by apbc. If the firm cannot cover its average cost it may close down.
This may be the point of exit from the market.
Conclusion : Teacher concludes the class after checking and marking the students notes.

Assignment

1. In what two ways do consumers benefit from perfect competition?

2. Outline any two differences between monopoly and perfect competition.

LESSON PLAN FOR THE SIXTH WEEK ENDING

Periods Sub-topics Duration

Topic: 1 impefect Market 40mins
Market structure price Determination

11

Period 1

School: Marvel International School, Ughelli, Delta state

Subject: Economics

Topic: Market Structure

Class : SS2

Age: 15years +

Duration: 40minutes

Sex: Boys and girls

Date:

ENTRY BEHAVIOR: The students are ask some questions on their previous class on population

PREVIOUS KNOWLEDGE- The students had been given some basic knowledge on population

BEHAVIOURAL OBJECTIVES: At the end of class, the students should be able to

1. Draw graph to illustrate price and quantity determination under
(a) Imperfect competition
(b) monopoly market
(c) oligopoly marke
INSTRUCTIONAL MATERIAL – Charts, maps and pictures

Instructional procedure

Step1 Introduction and set induction

Mode: Individual

Teacher's activity: revises the previous work on unemployment

StepII: Concept definition

Mode: Individual

Teacher's activity: the teacher introduces the topic by writing it on the board "Market " teacher
goes further to Emphasizes the distinction between market and a market place.

Students activity: Answer some questions on their previous class

Step 3: Feturues of a market

Mode: Individual

Teacher activity: List the features of the market

Students activity: Pay attention

Step4: Teacher summaries the lesson by looking at the main points of the topic
Mode: Individual

Evaluation: The teacher asks the following questions to the students

Draw graph to illustrate price and quantity determination under
(a) Imperfect competition
(b) monopoly market
(c) oligopoly marke

Board summary

IMPERFECT MARKET

An imperfect market may be defined as the market in which prices of goods or services can
easily be influenced by the sellers or buyers.

In other words, an imperfect market is a market situation in which the force of demand and
supply do not operate freely.

TYPES OF IMPERFECT MARKET

1. Monopolistic Competition: This is a market situation in which there are many producers
or sellers producing or selling identical but non-homogenous commodities. Good are
not homogenous due to branding or use of trade- marks or the services offered may
differ in quality.
2. Oligopoly: This is an imperfect market in which there are few producers or sellers of the
same commodity. Also known as colluding oligopoly.
3. Duopoly: This is a market situation in which there are only two sellers or producers of
commodity but there are many buyers.
4. Monopsony: This is an imperfect market in which there is a single seller of a particular
good or service.

CONDITIONS FOR IMPERFECT MARKET

1. Heterogeneous commodity
2. There is only one or very few buyers and or sellers
3. There is an imperfect knowledge of market transactions
4. There is no free entry into or exit from the market
 5. Preferential treatment exists
6. No uniform prices
7. There are transport costs involved in moving goods and factors of production
8. Goods are not portable

MONOPOLY

Monopoly is a market situation in which an individual or firm controls the total output or supply
of a good or service which has no close substitutes.

FEATURES OF MONOPOLISTIC MARKET

1. There is only one seller or a combination of firms under one management. The single
seller has no rivals
2. The monopolist has the ability to control either price or output, but not both at the
same time
3. Entry is restricted or barred in monopolistic markets
4. There is no prefect substitute for the products of the monopolist
5. There is an imperfect knowledge of market transactions

Conclusion : Teacher concludes the class after checking and marking the
students notes

Assignment: List and explain reasons why people earn different wages

Period 2
Date:
Behavioural objectives: By the end of the lesson, the students should be able to
1. Explain the causes of monopoly
2. Advantages and disadvantages of monopoly
3. How to control monopoly
Board Summary

TYPES OR CAUSES OF MONOPOLY

1. Natural monopoly: Nature does not distribute its resources evenly over the earth
2. Social or government monopoly
3. Legal monopoly: Monopoly may be created by law
4. Voluntary monopoly: This type of monopoly is formed when firms willingly merge or
combine
5. Technological monopoly: This is a monopoly which arises as a result of technological
development
6. Patent law: This law confers on a firm special privilege to protect its new invention and it
tends to scare away other competitors.
ADVANTAGES OF MONOPOLY
1. Economies of scale due to greater efficient and full utilization of productive resources
2. Reduced risk of over-production
3. Avoids duplication or wastage
4. Greater efficiency in organisation
5. Centralized management
6. Product standardization
DISADVANTAGES OF MONOPOLY
1. Profiteering and exploitation of consumers
2. Restriction of output, and scarcity of product
3. Restriction of consumers” choice
4. A lack of enterprise and insufficiency
5. Resource misallocation
CONTROL OF MONOPOLY
1. Provision of substitute products
2. Privitisation
3. Stoppage of issuance of patent law
4. Discouraging merging of firms
5. Reduction of tariff
Equilibrium of the Monopolist
Price and output determination: A monopolist cannot fix price and output at the same time. He
has two options;
i. To fix price and leave the output to be determined by the demand
ii. To fix output to be produced and allow the price to be determined by the demand
 The demand MC sloping because the firm is also the
Totalcurve facing
Revenue the monopolist is downward
= OPaQ
AC
industry. Total
The Cost
most =profitable
OPaQ output is where MC=MR. The monopolist can earn abnormal
profit, both in the short run and long run. In the short run, a monopolist will be at equilibrium if
P C
thePrice
following conditions are fulfilled.
D
1. and The marginal
B cost is equal to marginal (MC=MR). D=AR
2. cost Marginal cost cuts marginal revenue S from below. The slope of MC is greater than the
slope of MR at the point of intersection. In figure below, the monopolist is at equilibrium
at point S where MC=MR and MC cut MR from below. At the point of equilibrium
MR
quantity
0 produced is OQ1 which the price is OP. He is able to cover both the average cost
Quantity
Q1
and marginal cost. The monopolist realizes excess profit which is equal to the shaded
portion PBCD.
Total Revenue = OPC Q1
Total Cost=BDOQ1
Profit=PBCD (Abnormal profit

Price and cost MC

AC

MONOPOLIST EARNING NORMAL PROFIT AR

A monopolist can also make normal profit. The equality of MR marginal cost and marginal revenue
at point b determines the quality Q1 which is sold at price A. The monopolist earns normal profit
0 Q1 Quantity
when average cost curve is tangential to the average revenue at this level of output.
 MONOPOLIST EARNING LOSS
In a monopoly market, loss can be made if the variable cost is outside the revenue area. The
equilibrium position is that MC=MR. The price of the monopolist as fixed by the demand does
not cover the average cost. Therefore, there can be loss. This will be illustrated below.

MC

Price
and a
cost e
d
b

MR
0 Q1 Quantity

Total Revenue = bdoQ1

Total Cost = aocQ1
Loss = abcd
The loss is represented by rectangle abcd. The average cost is above the average revenue. It
simply means that the monopolist cannot cover its lost
Conclusion : Teacher concludes the class after checking and marking the students
notes

Assignment:
1. Output any two differences between monopoly and perfect competition
2. Explain the following,
i. Monopolistic competitive market
ii. Oligopoly
iii. Oligosony.

WEEK 7: INDUSTRIES IN NIGERIA

Meaning Industry

An industry consists of a group of firms producing broadly similar commodities. Examples are
the shoe industry, the transport industry, the cement industry, etc.

The production side of business activity is referred as industry. It is a business activity, which is
related to the raising, producing, processing or manufacturing of products.

The products are consumer's goods as well as producer's goods. Consumer goods are goods,
which are used finally by consumers. E.g. Food grains, textiles, cosmetics, VCR, etc. Producer's
goods are the goods used by manufacturers for producing some other goods. E.g. Machinery,
tools, equipment’s, etc.

Expansion of trade and commerce depends on industrial growth. It represents the supply side of
market.

Firm

The firm is an independently administered business unit carrying out production, construction,
or distribution activities. Examples of firm in Nigeria are Dangote cement, Cadbury Nigeria Plc.

PLANT

This is the same as the factory. It consists of the tools, equipment, machines and buildings of a
business concern. It is a business establishment or the actual place where production is
organized. E.g Aladja steel plant, etc.
 Types of Industries

1. Primary Industry

Primary industry is concerned with production of goods with the help of nature. It is a nature-
oriented industry, which requires very little human effort. E.g. Agriculture, farming, forestry,
fishing, horticulture, etc.

2. Genetic Industry

Genetic industries are engaged in re-production and multiplication of certain spices of plants and
animals with the object of sale. The main aim is to earn profit from such sale. E.g. plant
nurseries, cattle rearing, poultry, cattle breeding, etc.

3. Extractive Industry

Extractive industry is concerned with extraction or drawing out goods from the soil, air or water.
Generally products of extractive industries come in raw form and they are used by manufacturing
and construction industries for producing finished products. E.g. mining industry, coal mineral,
oil industry, iron ore, extraction of timber and rubber from forests, etc.

4. Manufacturing Industry

Manufacturing industries are engaged in transforming raw material into finished product with the
help of machines and manpower. The finished goods can be either consumer goods or producer
goods. E.g. textiles, chemicals, sugar industry, paper industry, etc.

5. Construction Industry

Construction industries take up the work of construction of buildings, bridges, roads, dams,
canals, etc. This industry is different from all other types of industry because in case of other
industries goods can be produced at one place and sold at another place. But goods produced and
sold by constructive industry are erected at one place.

6. Service Industry

In modern times service sector plays an important role in the development of the nation and
therefore it is named as service industry. The main industries, which fall under this category,
include hotel industry, tourism industry, entertainment industry, etc.
 WEEK10: LOCATION OF INDUSTRY

Location of industry refers to the siting of an industry in a particular place.

Factors Influencing Industrial Location

Generally, location of industries is influenced by economic considerations though

certain non-economic considerations also might influence the location of some
industries. Maximisation of profit which also implies cost minimization is the most
important goal in their choice of particular places for the location of industries. There are
several factors which pull the industry to a particular place. Some of the major factors
influencing location are discussed below:

1. Availability of raw materials: In determining the location of an industry, nearness to

sources of raw material is of vital importance. Nearness to the sources of raw materials
would reduce the cost of production of the industry. For most of the major industries, the
cost of raw materials form the bulk of the total cost. Therefore, most of the agro-based
and forest-based industries are located in the vicinity of the sources of raw material
supply.

2. Availability of Labour: Adequate supply of cheap and skilled labour is necessary for
and industry. The attraction of an industry towards labour centres depends on the ratio
of labour cost to the total cost of production which Weber calls ‘Labour cost of Index’.
The availability of skilled workers in the interior parts of Bombay region was one of the
factors responsible for the initial concentration of cotton textile industry in the region.

3. Proximity to Markets: Access to markets is an important factor which the

entrepreneur must take into consideration. Industries producing perishable or bulky
commodities which cannot be transported over long distance are generally located in
close proximity to markets. Industries located near the markets could be able to reduce
the costs of transport in distributing the finished product as in the case of bread and
bakery, ice, tins, cans manufacturing, etc. Accessibility of markets is more important in
the case of industries manufacturing consumer goods rather than producer goods.

4. Transport Facilities: Transport facilities, generally, influence the location of industry.

The transportation with its three modes, i.e., water, road, and rail collectively plays an
important role. So the junction points of water-ways, roadways and railways become
humming centres of industrial activity. Further, the modes and rates of transport and
transport policy of Government considerably affect the location of industrial units. The
heavy concentration of cotton textile industry in Bombay has been due to the cheap and
excellent transportation network both in regard to raw materials and markets.

5. Power: Another factor influencing the location of an industry is the availability of

cheap power. Water, wind, coal, gas, oil and electricity are the chief sources of power.
Both water and wind power were widely sought at sources of power supply before the
invention of steam engine. During the nineteenth century, nearness to coal-fields
became the principal locating influence on the setting up of new industries, particularly,
for heavy industries. With the introduction of other sources of power like electricity, gas,
oil, etc. the power factor became more flexible leading to dispersal and decentralization
of industries.

6. Site and Services: Existence of public utility services, cheapness of the value of the
site, amenities attached to a particular site like level of ground, the nature of vegetation
and location of allied activities influence the location of an industry to a certain extent.
The government has classified some areas as backward areas where the entrepreneurs
would be granted various incentives like subsidies, or provision of finance at
concessional rate, or supply of power a cheaper rates and provision of education and
training facilities. Some entrepreneurs induced by such incentives may come forward to
locate their units in such areas.

7. Finance: Finance is required for the setting up of an industry, for its running, and also
at the time of its expansion. The availability of capital at cheap rates of interests and in
adequate amount is a dominating factor influencing industrial location. For instance, a
review of locational history of Indian cotton textile industry indicates that concentration
of the industry in and around Bombay in the early days was mainly due to the presence
of rich and enterprising Parsi and Bhatia merchants, who supplied vast financial
resources.

8. Natural and Climatic Considerations: Natural and climatic considerations include

the level of ground, topography of a region, water facilities, drainage facilities, disposal
of waste products, etc. These factors sometimes influence the location of industries. For
instance, in the case of cotton textile industry, humid climate provides an added
advantage since the frequency of yarn breakage is low. The humid climate of Bombay
in India and Manchester in Britain offered great scope for the development of cotton
textile industry in those centres.

9. Personal Factors: In deciding location of industrial units, sometimes an entrepreneur

may have personal preferences and prejudices against certain localities. For instance,
Mr. Ford started to manufacture motor cars in Detroit simply because it was his home-
town. In such cases, personal factor dominates other considerations. However, this kind
of domination is rare.
10. Strategic Considerations: In modern times, strategic considerations are playing a
vital role in determining industrial location. During war-time a safe location is assuming
special significance. This is because in times of war the main targets of air attacks
would be armament and ammunition factories and industries supplying other
commodities which are required for war. The Russian experience during the Second
World War provides and interesting example.

11. External Economies: External economies also exert considerable influence on the
location of industries. External economies arise due to the growth of specialized
subsidiary activities when a particular industry is mainly localized at a particular centre
with port and shipping facilities. External economies could also be enjoyed when a large
number of industrial units in the same industry were located in close proximity to one
another.

12. Miscellaneous Factors: Historical incidents also play a dominating role in

determining the location of industries in certain cases. The development of cotton-textile
industry in Lancashire provides an interesting example for this. Further, the size of and
industrial unit would also have much influence in choosing location. This is because the
size of industrial units depends upon the radius of the circle within which they can
profitably distribute their goods and upon the density of population living within the
circle.

LOCALISATION OF INDUSTRIES
Localisation of industries refers to the concentration of many firms of an industry in a particular
area.

Advantages And Disadvantages Of

Localisation
Localisation has both merits and limits. They are enumerated below.

Advantages

1. Reputation – The place where an industry is localised gains reputation and so do the
products produced there. As a consequent, articles bearing the name of that location
find wide markets such as Sheffield cutlery, Swiss watches Ludhiana Hosiery etc.

2. Skilled Labour – Localisation escorts to specialisation in particular trades. As a

consequence, labourers skilled in those trades are fascinated to that place. The localised
industry is continuously fed by a regular supply of skilled labour that also attracts new
firms into the industry. Further, there is local supply of skilled labour that children of the
 labourers accede from them. The enhancements of the watch industry in Switzerland, of
the shawl industry in Kashmir etc are primarily due to this factor.

3. Growth of Facilities – Focus of an industry in specified region leads to the development

of specific facilities there. To cater to the needs of the industry, banks and financial
institutions, open their branches whereby the firms are able to get timely credit
facilities. Railways and transport concerns allow exceptional transport facilities which
the firms make use of bringing materials and transporting goods. Likewise, insurance
companies give insurance facilities and thus indemnify risk of fire, accidents, thefts etc.

4. Subsidiary industries – Where industries are localised, subsidiary industries grow up to

supply machines, tools, implements and other materials and to utilise their by-products.
For instance, where the sugar industry is localised, plants to produce sugar machinery
tools from molasses and for rearing poultry which utilise molasses in nosh.

5. Employment Opportunities – As an effect from the above, with the localisation of an

industry in a particular locality and the establishment of subsidiary industries,
employment opportunities considerably increase in that region.

6. Common Problems – All concerns form an association to solve their common difficulties.
This connection secures various types of facilities from the government and the other
agencies for expanding business establish research labs, publishes technical and trade
journals and opens training centres for technical personnel. As a consequence all firms
benefits.

7. Economy Gains – Localisation leads to the lowering of production costs and

improvement in the quality of the products when the firms benefits from the availability
of skilled labour, timely credit, quality materials, research facilities, market and
transport facilities etc. Also the trade gains through the standing of the place, the
people gain through larger employment opportunities, the government gains through
larger tax revenue and thus the economy gains on the whole.

Disadvantages

Also localisation is not an unmixed go-ahead. It has its limitations.

1. Dependence – When an industry is localised in a particular locality, it makes the

economy dependant for its requirements of the products manufactured there. Such
dependence is dangerous in the event of war, a misery, or a natural disaster since the
supplies of the articles will be disturbed and the whole financial system will endure.

2. Social Problems – Localisation of industries in a particular locality creates many social

problems such as congestion, emergence of slums, accidents, strikes etc. These
adversely affect the efficiency of labour and the productive ability of the industry.
 3. Limited Employment – Where an industry is localised, employment opportunities are
limited to a particular type of labour. In the event of a slump in that industry, specialised
labour fails to get surrogate employment in some other place. Once again, if such
specialised labour organises itself into a powerful trade union, it can force the
employers to pay higher wages which may raise the outlay of manufacture and
unfavourably influence the industry.

4. Diseconomies – With the way of time, the focus of industries in a meticulous place,
economies of scale may give path to diseconomies. Transport restricted access emerge.
There are recurrent power break downs. Financial organizations are powerless to meet
the credit needs of the entire industry due to fiscal severity. As noted prior, labour asks
for higher wages and better and better living conditions. All these are inclined to raise
costs of production and reduce production.

5. Regional Imbalance – Focus of industries in one region or locality leads to the top-sided
development of the fiscal. When one industry is localised in a region it attracts more
business men who establish other industries there since the accessibility of infrastructure
facilities like power, transport, finance, labour etc. Thus such regions improve more whilst
the other areas linger backward. Employment opportunities, the level of earnings and the
standard of living amplifies at a much greater velocity in these areas relatively with other
areas of the nation.

QUESTION:

1. What are the likely reasons for government participation in the location of industries in
Nigeria?.
2. Give reasons for the siting of industries in rural areas of Nigeria.