Lesson Plan

• Describe the basic economic problem of scarcity and unlimited wants.
• Identify the three consumer decisions (what, how much, from which source) and explain opportunity cost.
• Analyze real‑world consumer examples to calculate opportunity cost.
• Apply the concept of a budget constraint to make informed consumer choices.
• Evaluate trade‑offs between quality and quantity in everyday spending.

• Projector and screen
• Whiteboard and markers
• Handout with consumer‑choice table and opportunity‑cost examples
• Calculator worksheets
• Sticky notes for quick decision‑making activity

Begin with a quick poll: “What did you spend money on this week?” Use responses to highlight that every purchase means giving up something else. Link this to prior knowledge of wants vs. needs and state that today students will learn how to recognise and measure those trade‑offs. Success criteria: students will be able to define opportunity cost and apply it to everyday choices.

1. Do‑Now (5’) – Students list a recent purchase and the alternative they gave up.
2. Mini‑lecture (10’) – Explain scarcity, the basic economic problem, and the three consumer decisions with real‑world examples.
3. Guided practice (12’) – Work through the opportunity‑cost formula using worksheet examples; complete calculations.
4. Group activity (15’) – Budget‑constraint simulation: allocate £200 across entertainment, clothing, and savings; record trade‑offs.
5. Class discussion (8’) – Groups share their allocations, highlighting opportunity costs and quality‑quantity choices.
6. Diagram sketch (5’) – Students draw a simple budget line with an indifference curve and label the optimal consumption point.
7. Exit ticket (5’) – Write one personal consumer decision and its opportunity cost.

Recap that scarcity forces consumers to make choices, each involving an opportunity cost, and that budget constraints help visualise trade‑offs. Collect exit tickets to check understanding, and assign homework: find a personal consumer decision made this week, calculate its opportunity cost, and suggest an alternative allocation.