Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Economics
Lesson Topic: Definition of opportunity cost
Learning Objective/s:
  • Define opportunity cost and explain its significance in economic decision‑making.
  • Identify trade‑offs and calculate opportunity cost using the simple formula.
  • Analyse real‑world scenarios to determine the most valuable forgone alternative.
  • Apply the concept to illustrate resource‑allocation decisions.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheet with the comparison table
  • Handout of a Production Possibilities Frontier diagram
  • Calculators (optional)
 Introduction:
Imagine you have four free hours after school—what would you choose to do? Students already know that resources are scarce and every choice involves a trade‑off. Today they will learn to define opportunity cost, calculate it, and use it as a success criterion for evaluating choices.
Lesson Structure:
  1. Do‑now (5'): Think‑pair‑share on how you would spend four free hours; teacher records a few examples (checks prior knowledge).
  2. Mini‑lecture (10'): Define opportunity cost, present the formula, and highlight key points about scarcity and trade‑offs.
  3. Guided example (10'): Work through the study‑vs‑work scenario, calculate the opportunity cost together.
  4. Worksheet activity (15'): Students complete a table comparing two alternatives and compute the opportunity cost independently.
  5. PPF demonstration (10'): Show a production possibilities frontier diagram and explain how moving along the curve illustrates opportunity cost.
  6. Quick quiz (5'): Exit ticket – write one personal example of opportunity cost (formative check).
Conclusion:
We recap the definition, formula, and why opportunity cost matters for efficient resource allocation. Exit tickets are collected, and for homework students must find two personal examples of opportunity cost to share in the next lesson.