Lesson Plan

• Describe scarcity, choice, and opportunity cost for individuals, firms, and governments.
• Explain how to calculate opportunity cost using the formula and apply it to real‑world examples.
• Analyze decision‑making at different economic levels using a production possibility frontier and cost‑benefit reasoning.
• Identify common pitfalls in interpreting opportunity cost and avoid them.

• Projector and screen
• Whiteboard and markers
• Printed worksheet with examples and practice questions
• Calculators
• PPF diagram handout
• Sticky notes for group activity

Begin with a quick prompt: “What is something you wanted but couldn’t have because you chose something else?” Connect this to the previous lesson on scarcity. State the success criteria: students will be able to calculate and explain opportunity cost for individuals, firms, and governments by the end of the lesson.

1. Do‑Now (5') – Students write a personal choice and the trade‑off they gave up.
2. Mini‑lecture (10') – Define scarcity, choice, opportunity cost; present the formula.
3. Guided example (8') – Work through Emma’s concert vs. textbook decision together.
4. Group activity (12') – Teams calculate opportunity cost for the bakery and council scenarios and share results.
5. PPF demonstration (10') – Teacher draws a PPF, explains marginal opportunity cost.
6. Individual practice (10') – Students answer three practice questions on the worksheet while teacher circulates.
7. Check for understanding (5') – Exit ticket: define opportunity cost in one sentence and give a new example.

Summarise how scarcity forces choices and how opportunity cost helps evaluate those choices across all economic agents. Collect exit tickets to gauge understanding, and assign homework: complete additional practice problems and bring a real‑life decision to discuss in the next class.