How do you make money?

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Program for this lesson

• Review of the previous lesson
• Primary income and transfer income
• Assignments 2.1 & 2.2 (homework)
• Assignment 2.3

Lesson objectives

1. You can name the four factors of production and give an example of each one of them. 

2. You can link the four factors of production to the five primary incomes. 

3. You can name the main difference between a primary income and a transfer income. 

LessonUp

Participate by:

1. Going to lessonup.nl
2.  Logging in with the pin at the bottom of this screen. 
3. Fill in your own name. 

Factors of production

• Capital
• Labour
• Nature
• Entrepreneurship

Productiefactoren

1. Kapitaal
2. Arbeid
3. Natuur
4. Ondernemerschap

Factors of production

• Capital
• Machinery, buildings, materials
• Labour
• The work that people do
• Nature
• Land, sunlight, natural resources
• Entrepreneurship
• The entrepeneur coordinating the production process

Five primary incomes

1. Salary or wage
2. Interest
3.  Rent
4. Lease (pacht)
5. Profit

Drag the right primary incomes to the factors of production. 

Lease

Profit

Capital

Labour

Nature

Entrepeneurship

Salary

Interest or rent

Transfer income

Transfer income = an income which you get without having to do anything in return.

• Old Age Pensions Act
• Housing allowances

From Dad...

...To Son/Daughter

Is maintainance (alimentatie) an example of a primary income or transfer income?

1. Primary income
2. Transfer income

What is the main difference between a primary income (wage) and a transfer income (pocket money)?

Assignment 2.1 

• a. The minimum age to work in a supermarket is 13 years old. 
• b. Wage or salary

 

01:03

Imagine: you are 13 years old and you work at a supermarket. You have 7 hours of school on Friday. How many hours are you allowed to work in the supermarket on Friday?

1. Not more than 2 hours
2. Not more than 1 hour
3. Not more than 3 hours
4. Not more than 30 minutes

Assignment 2.2 

• a.  The people who take part in the production process have to pay taxes and contributions. These taxes and contributions end up in a kitty from which the transfer incomes are financed. 

Assignment 2.3

Fill in the table on page 23.