Lesson Plan

Resources → Subject Notes → Economics → Notes
Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Definition of the basic economic problem
Learning Objective/s:
  • Describe the basic economic problem and its three components: scarcity, choice, and opportunity cost.
  • Explain why scarcity creates trade‑offs in an economy.
  • Apply the concept of opportunity cost to a simple production possibilities frontier.
  • Analyze a PPF diagram to identify the trade‑off between two goods.
  • Evaluate how the basic economic problem influences decisions of households, firms, and governments.
Materials Needed:
  • Interactive whiteboard or projector
  • Printed handout of a PPF diagram (Food vs. Clothing)
  • Worksheet with scarcity, choice, and opportunity‑cost questions
  • Markers and sticky notes
  • Laptop for teacher presentation
  • Exit‑ticket slips
 Introduction:

Start with a quick poll: ask students to list three things they wish they could have instantly. Highlight that while wants are endless, resources such as time and money are limited, introducing the basic economic problem. Remind them of prior knowledge about supply and demand, and state that by the end of the lesson they will be able to define the problem, explain its key concepts, and identify opportunity costs.
Lesson Structure:
  1. Do‑now (5'): Students write down unlimited wants vs limited resources; teacher collects responses.
  2. Mini‑lecture (10'): Define scarcity, choice, opportunity cost and present the formal definition of the basic economic problem.
  3. PPF demonstration (12'): Show the Food‑Clothing PPF, discuss trade‑offs, calculate the opportunity cost of moving along the curve.
  4. Group activity (15'): Teams complete a worksheet analysing a simple PPF and answer questions on choice and opportunity cost.
  5. Class discussion (8'): Groups share findings; teacher clarifies misconceptions.
  6. Quick check (5'): Exit ticket – one‑sentence definition of the basic economic problem plus a personal example of opportunity cost.
Conclusion:

Recap that limited resources force societies to make choices, each with an opportunity cost, illustrated by the PPF. Collect the exit tickets to assess understanding, and assign a short case‑study reading on resource allocation for homework, to be discussed in the next lesson.