Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Examples of opportunity cost in different contexts
Learning Objective/s:
  • Identify opportunity cost examples across personal, business, government, and international trade contexts.
  • Explain how opportunity cost influences decision‑making for individuals, firms, and governments.
  • Apply the concept to evaluate real‑world choices using a comparative table or PPF diagram.
  • Analyse the trade‑offs shown in a production possibilities frontier.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handouts with the comparative table
  • Worksheet for scenario analysis
  • Laptop for teacher demonstration
  • Sticky notes for quick student responses
 Introduction:
Begin with a quick poll: “If you had $200, would you buy a new phone or a weekend getaway?” This connects to students’ recent choices and activates prior knowledge of trade‑offs. Explain that today they will uncover the hidden cost behind every decision and learn how to articulate it as the next best alternative.
Lesson Structure:
  1. Do‑Now (5’) – Students write down a personal decision they made this week and the alternative they gave up; share a few examples.
  2. Mini‑lecture (10’) – Define opportunity cost, present the formula, and illustrate with a PPF diagram.
  3. Guided exploration (15’) – In pairs, examine the comparative table; each pair explains one context (personal, business, government, international) and records the opportunity cost on a sticky note.
  4. Class discussion (10’) – Groups post their notes; teacher facilitates a discussion linking the examples and highlighting common patterns.
  5. Application activity (15’) – Individual worksheet: evaluate a new scenario (e.g., government choosing renewable‑energy funding) and calculate the opportunity cost; submit an exit ticket.
Conclusion:
Summarise that opportunity cost is the value of the next best alternative and that recognising it improves resource allocation. For the exit ticket, students write one real‑life example they observed today. Homework: complete a short reflection on how opportunity cost influences a personal budgeting decision.