Grade 9 Economics Unit 5: Introduction to Production and Cost

This unit, “Introduction to Production and Cost,” is divided into two major sections. The first introduces you to the mechanics of creating goods through production functions and the stages of production, while the second delves into the financial side, analyzing the difference between economic and accounting costs and how they relate to production efficiency.

---

Chapter 5.1 – Definition of Production, Inputs and Outputs

This chapter establishes the fundamental vocabulary of supply.

• Concepts of Production: Learn the basic definition of production and the production function.
• Inputs and Outputs: Explain the different types of resources (inputs) used to create finished goods (outputs).

---

Chapter 5.2 – Periods of Production

This section explores how time constraints affect a business’s ability to produce.

• Short Run vs. Long Run: Distinguish what makes a production period “short run” versus “long run”.
• Stages of Production: Analyze the essential features and specific stages of short run production.

---

Chapter 5.3 – Cost of Production

This chapter analyzes the expenses incurred during the production process.

• Types of Costs: Differentiate between accounting cost (financial expenses) and economic cost (opportunity cost).
• Fixed vs. Variable: Understand the different factors of production and discuss the variable and fixed costs incurred by businesses, such as a wheat flour factory.
• Cost Functions: Examine the characteristics of short run cost functions and their relationship to the production functions discussed earlier.

---

Learning Outcomes

By the end of this unit, you will be able to:

• Describe productivity.
• Explain the types of inputs and outputs.
• Analyze types of cost of production.