Organizing Productive Resources to Make a Profit – Grade Four
Ohio Standards
Connection:
Economics
Benchmark B
Explain why
entrepreneurship, capital
goods, technology,
specialization, and division
of labor are important in
the production of goods
and services.
Indicator 3
Explain how entrepreneurs
organize productive
resources to produce goods
and services and that they
seek to make profits by
taking risks.
Social Studies Skills and
Methods
Benchmark C
Communicate social
studies information using
graphs and tables.
Indicator 9
Communicate relevant
information in a written
report including the
acknowledgement of
sources.
Lesson Summary:
This lesson helps students understand ways an entrepreneur
organizes a business and takes risks to make a profit. The
lesson begins with a review of goods and services,
productive resources (resources used to make goods and
services i.e., natural resources, human resources, capital
goods) and expands to speculation about how businesses
make profits.
Estimated Duration: Four hours 30 minutes to six hours
Commentary:
Productive resources are resources used to make goods and
services (i.e., natural resources. human resources, capital
goods). This terminology is consistent with the Voluntary
National Content Standards for Economics. It is important
to understand the roles of entreprene urs, profit and loss.
Students need to realize that to gain a profit, entrepreneurs
will have to take risks and be able to organize the use of
resources effectively. This knowledge will be relevant to the
student as consumers today and as workers, consumers
and/or business owners in the future. The following is a
quote from a teacher who piloted the lesson, “I feel the
students have a real understanding of how a business
organizes resources to produce goods and services.”
Pre-Assessment:
Instructional Note:
Part one of the pre-assessment serves to determine whether
students have an understanding of productive resources and
part two helps to determine whether students have any
understanding of the concepts of profit and loss. It also serves
to introduce the lesson and provide definitions for students.
Part One
• Have students complete the Pre-Assessment, Attachment
A.
• Share the ideas of several students randomly. As students
are sharing, identify students that need additional practice
with this concept and those who already have a solid
understanding of the concepts (to do this, use a checklist
or anecdotal records).
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Organizing Productive Resources to Make a Profit – Grade Four
•
Optional: Provide students with small pictures to symbolize the steps in making a chair. Ask
them to arrange (organize) the pictures in order from the first resource to the final resource (See
Attachment B for the answer key). Have students glue their pictures onto a piece of construction
paper when they have the correct order displayed on their desks. This part of pre-assessment
serves to determine if students have any understanding of organizing productive resources to
make goods.
Part Two
• Ask students why someone starts a business. List their ideas on a chart or the overhead
projector.
Scoring Guidelines:
Use the student ideas generated, the information from the class discussion and teacher judgment to
determine the level of knowledge of your students and to differentiate and guide your instruction.
Some students will need activities to review the concepts of productive resources, others will be
reminded of the definitions through the pre-assessment activity and others will need activities to
enrich their understanding.
Post-Assessment:
The post-assessments serve to provide students with an opportunity to synthesize the information
gained from this lesson and to create a product that demonstrates the level of their understanding.
The purpose is to show how entrepreneurs use productive resources in their businesses, the reason
that they start businesses is to make a profit and that there are risks involved in this endeavor.
• Have the students write a feature story for Ohio Entrepreneur Magazine.
• Have students complete the Productive Resources Web, Attachment C and the Note-Taking
Chart, Attachment H, to gather and organize information for their news story. The productive
resource web will help students see how the business they selected must use resources in all
three productive resource categories (capital, human resources, natural resources). The notetaking chart will help students organize their research data.
• Tell students that their feature stories need to include:
1. Facts about the entrepreneur and his or her business (including what goods and/or services
are produced).
2. An explanation of the risks the entrepreneur took to become successful.
3. An explanation of what productive resources that business uses (capital, human resources,
natural resources).
4. An explanation of how that entrepreneur seeks to make a profit and what factors have an
effect on profit.
5. News story basics: who, what, where, when, why, and how.
6. A bibliography acknowledging your sources that must be in an accepted bibliographic
format.
Scoring Guidelines:
Use the post-assessment to determine your students’ understanding of productive resources and
opportunity costs. See Attachment D for a suggested rubric that mirrors the criteria for a feature
news story listed above.
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Organizing Productive Resources to Make a Profit – Grade Four
Instructional Procedures:
1. Have students complete section one of the chart How Different Businesses Use Productive
Resources in Different Ways, Attachment E. Have the students organize the resources needed to
produce a chair. In the chart, have the students write the word for each resource. See Attachment
F, Sample Answers.
2. Lead a class discussion about the ideas in the charts. Have students share rationales for each
choice.
3. Discuss: “We organize productive resources to accomplish goals.” Ask students, “What is the
main goal for businesses?” (to make a profit). Have the students complete numbers two and
three on their worksheet How Different Businesses Use Productive Resources in Different Ways,
Attachment E. Discuss and share student responses (see Attachment F, Sample Answers). Help
students understand that different businesses use productive resources in different ways based
upon their business goals.
4. Discuss: “What risks might be faced when you start and run a business?” Have students think of
risks that might be associated with starting a business. Then, have students read each statement
card provided in Attachment G, Risk Statement Cards. Sort these cards into two categories –
risk and not a risk. Discuss sorting choices.
5. Discuss what can happen if the business doesn’t function as planned. What happens if a
business doesn’t make a profit? Does a business make a profit in the first year? (Typical
businesses take several years to start making a profit.)
6. Ask students to explain how each risk you identified will help increase profits (making money).
7. Define and discuss:
a. Entrepreneur - an individual who organizes the use of productive resources to produce goods
or services.
b. Profit - income less all costs equals profit.
c. Risk - a chance of encountering loss.
d. Productive resources - the resources used to make goods and services (i.e., natural resources,
human resources, capital goods).
Instructional Tip:
Some ideas to include in your class discussion include competition, new product development, the
opportunity cost of producing a particular product and not a different one, availability of productive
resources and business statistics such as one out of 10 restaurants fail.
8. For the post-assessment, have the class generate a list of entrepreneurs and businesses. Provide
students with a list you have created based upon a keyword Web search. Post this list in the
classroom.
9. Divide the class into small groups (three to four students), have groups select a business from
the class list to research. Have students create a Productive Resources Web (see Attachment C)
that includes business, human resources, natural resources, and capital. Have students organize
the productive resources associated with the selected business into these three categories. This
web will be used to complete the post-assessment. Inform students that some businesses don’t
have one owner (entrepreneur), but are owned by stockholders who have shares in the company.
10. Give each group a copy of the Note-Taking Chart, Attachment H, for the post-assessment.
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Organizing Productive Resources to Make a Profit – Grade Four
11. Have students use these two worksheets, Attachments C and H, to help them organize the
information they gather for their feature news article. Model how to complete these two
worksheets.
12. Periodically check the progress of all students. Arrange ind ividual or group conferences to
discuss progress and provide feedback. If needed, adjust assignments accordingly after these
progress checks.
Differentiated Instructional Support:
Instruction is differentiated according to learner needs, to help all learners either meet the intent of
the specified indicator(s) or, if the indicator is already met, to advance beyond the specified
indicator(s).
• Students could work independently on their post-assessment project if they prefer, especially
those students who want more challenging assignments.
• Students who have a more difficult time researching and gathering information could be given a
business that has information readily available (nationally known businesses, typically).
• Some students may create a better post-assessment project if permitted to use a slide-show
format. Use the slide show computer program available in your school district.
• Students with reading difficulties may need partners to read aloud information. Be sure the
partner is able to assist without enabling. Partners can also check each other’s work.
• Parts of this lesson may require note-taking skills. Students who have difficulty with this skill
may need the assistance of a peer note-taker. You may also choose to provide some students
with a copy of your notes or overhead charts.
• Additional time may be required for some students in order to properly complete the postassessment.
• To move students beyond the indicator, arrange for a business mentor. Perhaps some students
can shadow their mentors to learn first hand about a particular business. This experience will
provide students with an opportunity for real-world investigations and learning.
Extensions :
• Choose a picture book story that is related to business and identifies productive resources. Have
students identify the productive resources as you read aloud the story.
• One way to share the reports or feature news stories would be to have a wax museum. Have
students create a display that shares the key points of their news story. Invite the students to
dress up as entrepreneurs or dress in a way that represents the businesses they researched. Share
these displays with other classes in your school. Tape record various portions of the students’
reports. Have students share this information orally when visitors arrive at their stations. Have
students visit each other’s exhibits to obtain additional information about organizing businesses,
entrepreneurship and taking risks to make a profit.
• Ask local businesses about product development and how new produc ts are created.
• Visit local retail facilities and/or factories to garner first- hand information or bring in local
business people to share their personal experiences.
Homework Options and Home Connections :
Have students find news articles about businesses to share with the class.
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Organizing Productive Resources to Make a Profit – Grade Four
Interdisciplinary Connections :
English Language Arts
• Reading Applications
Benchmark C: Explain how main ideas connect to each other in a variety of sources.
Indicator 3: Locate important details about a topic using different sources of information
including books, magazines, newspapers and online resources.
• Writing Process
Benchmark A: Generate ideas and determine a topic suitable for writing.
Indicator 1: Generate writing ideas through discussions with others and from printed material.
Benchmark E: Use revision strategies to improve the coherence of ideas, clarity of sentence
structure and effectiveness of word choices.
Indicator 5: Organize writing, beginning with an introduction, body and a resolution of plot,
followed by a closing statement or a summary of important ideas and details.
Materials and Resources:
The inclusion of a specific resource in any lesson formulated by the Ohio Department of Education
should not be interpreted as an endorsement of that particular resource, or any of its contents, by
the Ohio Department of Education. The Ohio Department of Education does not endorse any
particular resource. The Web addresses listed are for a given site’s main page, therefore, it may be
necessary to search within that site to find the specific information required for a given lesson.
Please note that information published on the Internet changes over time, therefore the links
provided may no longer contain the specific information related to a given lesson. Teachers are
advised to preview all sites before using them with students.
For the teacher: Overheads of charts and attachments, construction paper (9” X 12”) for preassessment A, a T-chart if the teacher desires, a list of entrepreneurs and
businesses.
For the student: Notebook paper, index cards, and other materials students need to take notes,
various books and reference materials related to businesses and entrepreneurs.
Vocabulary:
• productive resources
• entrepreneur
• profit
• risk
• human resources
• natural resour ces
• capital or capital goods
• cost
• benefit
Technology Connections :
• Helpful Web sites include theU.S. Small Business Association: sample business plans are
available at: http://www.sba.gov
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Organizing Productive Resources to Make a Profit – Grade Four
•
Have students use computers to do research for their articles and word processing software to
produce their articles.
Research Connections :
Daniels, H., and M. Bizar. Methods that Matter: Six Structures for Best Practice Classrooms. ME:
Stenhouse Publishers, 1998.
Authentic experie nces help students develop real-world knowledge and skills and give them the
ability to apply their learning in ways that prepare them for their careers and lives beyond
school.
Marzano, R. et al. Classroom Instruction that Works: Research-Based Strategies for Increasing
Student Achievement. Alexandria, VA: Association for Supervision and Curriculum Development,
2001.
Nonlinguistic representations or imagery mode help students think about and recall knowledge.
This includes creating graphic representatio ns (organizers).
General Tips :
• Note for pre-assessment: Identifying goods and services is a kindergarten indicator.
Categorizing economic activities as production or consumption is a third- grade indicator.
• You may wish to look at advertisements, Web sites (use a keyword search) and books to gather
your information about businesses.
• Choose businesses for which students can readily and easily find information so that the
research part of this lesson does not become unwieldy.
Attachments:
Attachment A, Pre-Assessment
Attachment B, Answer Key to Pre-Assessment
Attachment C, Productive Resources Web
Attachment D, Post-Assessment Rubric
Attachment E, How Different Businesses Use Productive Resources in Different Ways
Attachment F, Sample Answers
Attachment G, Risk Statement Cards
Attachment H, Note-Taking Chart
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment A
Pre-Assessment
Making a Chair
Name:
1. You are a furniture manufacturer. Describe the steps in making a wooden chair .
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
2.
What is a productive resource?
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment B
Answer Key to Pre -Assessment
Making a Chair
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment C
Productive Resources Web
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment D
Post-Assessment Rubric
Post-assessment rubric: Using this rubric a student could earn a total 18 points. 12 points or higher would indicate an understanding of the concepts covered
in this lesson. Note: Use your district’s guidelines for a proper paragraph. Another rubric may be used to grade the writing skills.
Exceeds expectations (3)
Acceptable (2)
Target for improvement (1)
Facts about the
The feature story contains eight to 10 facts about
The feature story contains some factual
The feature story is incomplete. It
entrepreneur and
the entrepreneur and business. Supporting details
information about the entrepreneur and business
contains few facts about the
business
are clearly stated.
(five to seven facts), but could include more
entrepreneur and business (less than
supporting details.
five facts).
An explanation of
The feature story explains at least three risks taken The feature story explained two risks taken by the
The feature story explains zero to one
risks
by the entrepreneur. These risks are supported
entrepreneur. These risks were partially supported risks and did not support these risks
fully by factual information.
by factual information.
with factual information.
How the business is
The feature story demonstrates strong
The feature story demonstrates some
The feature story demonstrates little
organized and uses of
understanding and provides evidence of how the
understanding and provides some evidence of how understanding and provides little or
productive resources
business is organized and how its productive
the business is organized and how its productive
no evidence of how the business is
resources are used. It provides three or more
resources are used. The feature story provides two organized and how its productive
examples.
examples.
resources are used. The feature story
provides less than two examples.
How the entrepreneur The feature story demonstrates strong
The feature story demonstrates some
The feature story demonstrates little
seeks profits and
understanding and provides evidence of how the
understanding and provides evidence of how the
understanding of and provides little
factors that affect
entrepreneur seeks profits. It provides three or
entrepreneur seeks profits. The feature story
or no evidence of how the
profit
more examples of factors that affect profit.
provides two examples of factors that affect profit. entrepreneur seeks profits. The
feature story provides less than two
examples of factors that affect profit.
News story basics:
The feature story contains a well-written summary The feature story contains a summary about the
The feature story contains a brief
who, what, where,
about the entrepreneur and business selected. It
entrepreneur and business selected. It includes
summary about the entrepreneur and
when, why, and how
includes five to six news story basics.
three to four news story basics.
business selected. It includes one to
two news story basics.
Bibliography
At least three sources are correctly cited. An
One to two sources are correctly cited. An
1. No sources are cited.
accepted bibliographic format is used.
accepted bibliographic format is used.
2. A source is listed, but not
cited using an accepted
bibliographic format.
Name:
Comments:
Grade:
/18
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment E
How Different Businesses Use Productive Resources in Different Ways
1. Using the words and phrases provided and the chart below, organize the resources needed to
produce a chair. In the chart, you will write the word for each resource. Put only one resource
in a box.
Natural
resources
Human
resources
Capital
resources
(goods)
2. Look at the list of resources below. How would you organize these resources to make a profit
if you were a furniture maker?
trees
coffee beans
coffee pot
coffee grinder
saw
glue
nails
coffee cups
workers
salespeople
sander and sandpaper
lumber jack
coffee roaster (to roast the beans)
coffee growers
advertisers (who create advertisements)
I need a lot of this
resource.
I need some of this
resource.
I don’t need this
resource.
3. Look at the same resources listed above. How would you organize these resources to make a
profit if you were a coffee manufacturer?
I need a lot of this
I need some of this
I don’t need this
resource.
resource.
resource.
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment F
Sample Answers
1.
Using the words and phrases provided and the chart below, organize the resources needed to produce a chair. In
the chart, you will write the word for each resource. Put only one resource in a box.
Sample answers
for Question
Trees
Glue
#1Natural
resources
Human
resources
Lumberjack to cut Worker to saw the Worker/craftsman
Worker to sand the
down trees
wood
to build the chair
chair
Capital
resources
(goods)
2.
Saw
Nails
Hammer
Sander and
sandpaper
Look at the list of resources below. How would you organize these resources to make a profit if you were a
furniture maker?
trees
coffee beans
coffee pot
coffee grinder
saw
glue
nails
coffee cups
workers
salespeople
sander and sandpaper
lumberjack
coffee roaster (to roast the beans)
coffee growers
advertisers (who create advertisements)
I need a lot of this resource.
trees
workers
sander and sandpaper
nails
3.
I need some of this resource.
saw
glue
salespeople
coffee beans, coffee grinder, coffee pot, and coffee
cups (for the employees)
advertisers
lumber jacks
I don’t need this resource.
coffee roaster
coffee growers
Look at the same resources listed above. How would you organize these resources to make a profit if you were a
coffee manufacturer?
I need a lot of this resource.
I need some of this resource.
I don’t need this resource.
coffee roaster
coffee pot, and coffee cups (for
Trees
the employees)
coffee growers
coffee grinder
Workers
coffee beans
advertisers
sander and sandpaper
salespeople
nails, saw, glue
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment G
Risk Statement Cards
I need money
to pay for
resources, so I
get a loan from
a bank.
I need new
clothes.
I need to paint
my house.
I have an idea
for a new toy.
I made one in
my garage.
I designed a
new tortilla
burger for my
hamburger
restaurant. I’m
asking
customers to
sample a
burger.
I got married.
I went to
school to learn
about taxes.
I went to
school to learn
scuba diving.
I hired a young
man who
doesn’t have a
college degree.
I hired 20 new
employees.
I played
basketball at
lunch.
I changed
advertising
companies.
I bought a
large
warehouse.
I paid all my
bills.
I added a new
chewing gum
flavor to my
product
choices.
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Organizing Productive Resources to Make a Profit – Grade Four
Attachment H
Note-Taking Chart
Name:
Business owner
Business
Goods and/or
services provided
Productive
resources used in
making the goods
or providing the
service (include
natural resources,
human resources
and capital goods)
How do you think
this business
makes a profit?
Additional Information:
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