Lesson Plan

• Describe the concepts of scarcity, choice and opportunity cost.
• Explain how opportunity cost is calculated and why it matters for decision‑making.
• Apply opportunity‑cost analysis to personal and production scenarios.
• Distinguish opportunity cost from accounting cost and identify common misconceptions.
• Evaluate choices using a simple Production Possibility Frontier diagram.

• Whiteboard and markers
• Projector or interactive display
• Slide deck with PPF diagram and examples
• Handout worksheet containing opportunity‑cost tables
• Calculators (optional)
• Sticky notes for group activity

Begin with a quick poll: “If you had four free hours after school, would you study or work?” This connects the lesson to students’ own choices and highlights scarcity. Review the previous lesson on scarcity, then present today’s success criteria – students will be able to define opportunity cost, calculate it, and apply it to real‑world situations.

1. Do‑now (5 min): Students write their poll answer on sticky notes and share brief reasons.
2. Mini‑lecture (10 min): Define scarcity, choice and opportunity cost; introduce the formula and show a simple diagram.
3. Guided example (10 min): Work through the study‑vs‑work scenario, calculate the opportunity cost for each option.
4. PPF activity (15 min): In pairs, plot a two‑good PPF on graph paper, identify marginal opportunity cost at different points.
5. Decision‑making practice (10 min): Complete worksheet items that require calculating opportunity cost for production choices.
6. Check for understanding (5 min): Quick exit‑ticket question – “State one personal decision you could make and its opportunity cost.”

Recap that opportunity cost measures the value of the next best alternative and guides efficient allocation of scarce resources. Students submit their exit tickets and, for homework, read the textbook section on cost‑benefit analysis and bring a real‑life example of an opportunity cost to discuss next class.