Materials

  • CCB Mathematics pages 214 -217

Standards

Objectives

  • Understand the factors influencing profit

  • Explain the role of incentive in profit

Key Concept

  • The possibility of increased profits encourages business owners to take risks, to expand, and to try various strategies that will increase productivity.

Vocabulary

Tier 2 Incentive
Interpret
Morals
Productivity
Profit
Tier 3 Capital
Test Words Text Structure

Evidence-Based Reading

  • Making Connections: Encourage students to think about any experiences they have had in their own lives that relate to the lesson. Ask: Have you ever worked at a business that made you feel glad about coming to work? If so, what was it about the company or the job that you enjoyed? Did you find that your attitude (how the working environment made you feel) had an effect on how you performed your job? Invite volunteers to share their experiences with the class.

Writing Practice

  • Remind students that prewriting is a useful part of the writing process, even when writing a short piece like a paragraph. Before they draft their paragraphs, encourage students to list the two benefits, jot down why they are important, and make a note of why they might help increase company profits.

Before Lesson

Ask students if they know what a profit is (the income that remains after expenses are subtracted). Tell students that the profit motive (the desire to make a profit) is what inspires business people to manage their capital, labor, and other aspects of production. Explain that in this lesson students will learn more about profit.

Background

Ask students why people work. Explain how a worker’s desire to get paid parallels the desire of business owners to make a profit. Make sure students understand what motive means, and encourage them to memorize the phrase profit motive. They should understand profit motive as the fundamental or most basic reason for economic activity in countries with capitalist economies like the United States. Ask students to share ideas about how businesses can make a profit. (Sample answers: produce a product that people want to buy, keep costs down) Write students’ responses on the board and add to the list as the lesson progresses.

Guided Practice

  • Making a Profit
  • The Role of Incentive in Making a Profit

Core Skill

Determine the Central Idea: When students have completed the activity, divide the class into small groups. Tell students to discuss a topic of their choosing, and as a group, write a paragraph that includes the central idea of the discussion in the first sentence and restates that idea near the end of the piece. If students have difficulty coming up with topics, suggest reality TV programs, the Harry Potter or Twilight series of books, finding a part-time job. Invite volunteers to share the groups’ paragraphs with the class and have other students offer suggestions for revision.

Interpret Meaning: After students complete the activity, invite volunteers to read their sentences to the class. Then ask students to write at least three sentences that display a cause-and-effect structure. Tell students they may choose to write about an event that happened to them recently. (Sample answer: Because I was late for class, I decided not to go to the gas station. Half a mile from school, the car ran out of gas, so I had to walk back to the station to buy gas. This made me even later for class.)

Extension

Restate the Key Concept: Focus students on the Key Concept for this lesson: The possibility of increased profits encourages business owners to take risks, to expand, and to try various strategies to increase productivity. Direct students to restate the sentence in their own words. Ask them to also rewrite the concept in their own words. Then have student’s trade papers with a partner and have the partners discuss the papers with each other.

Categorize Factors of Production: Have students choose a type of business and go online to investigate the factors of production that must be controlled in order for the business owners to make a profit. If students have difficulty choosing a business or interpreting factors of production, suggest they categorize the following factors required for the operation of a doughnut shop: shop rental; wages for bakers and cashiers; purchase of mixers, ovens, deep fryers, refrigerators, display cases, flour, sugar, eggs, and other ingredients; payment for utilities; premium payments for fire and other insurance. When students have categorized the factors of production for the doughnut shop or other business of their choice, discuss as a class the factors of production used and how each business makes a profit.

Lesson Review