Concept of Want and Scarcity, Scale of Preference, Choice, Opportunity Cost Economics SS 1 First Term Lesson Notes Week 2

Subject: Economics
Class: SS 1
Term: First Term
Week: 2
Age: 14-16 years
Topic: Meaning of Economics and Related Concepts (Continued)
Sub-topic: Concept of Want and Scarcity, Scale of Preference, Choice, Opportunity Cost
Duration: 80 minutes

Behavioral Objectives

By the end of this lesson, students should be able to:

1. Define want and scarcity and explain their relationship in Economics.
2. Explain the scale of preference and its role in making choices.
3. Describe the concept of choice in Economics.
4. Define opportunity cost and give examples of its application in decision-making.

Keywords

• Want
• Scarcity
• Scale of Preference
• Choice
• Opportunity Cost

Set Induction

The teacher will start the lesson by asking students to list their top three items they wish to buy. The teacher will then introduce the concept of limited resources and the need to prioritize.

Entry Behavior

Students understand that resources like money and time are limited and that they often have to make choices based on priority.

Learning Resources and Materials

1. Economics textbook
2. Whiteboard and marker
3. Diagrams illustrating scarcity, choice, and opportunity cost

Building Background/Connection to Prior Knowledge

Students are familiar with the need to prioritize wants due to limited resources.

Embedded Core Skills

• Critical thinking
• Decision-making
• Prioritization

Learning Materials

1. Illustrations of scenarios involving limited resources
2. Relevant textbooks and reference books

Reference Books

1. “Economics for Senior Secondary Schools” by Adegoke, Lagos State Scheme of Work
2. “Introduction to Economics” by Oluyemi

Content

1. Concept of Want and Scarcity

• Want: A want is a desire for goods or services that are not necessarily essential for survival but are sought after for comfort or pleasure. Examples include luxury items, entertainment, etc.
• Scarcity: Scarcity means that resources are limited and cannot satisfy all human wants. Since resources are finite, individuals and societies must make decisions about how to allocate them.

Relationship Between Want and Scarcity:
Scarcity arises because people have unlimited wants but resources are limited. This scarcity forces individuals to make choices about which wants to satisfy.

2. Scale of Preference

The scale of preference is a list that arranges individual or societal wants in order of priority, with the most pressing needs at the top. This helps individuals or governments make choices based on the resources available.
Example: A student may prioritize spending on school materials over entertainment.

3. Choice

Choice is the decision made by an individual or society to select one option over another due to limited resources. Because not all wants can be fulfilled, people must choose what is most important to them.
Example: Choosing to buy textbooks instead of video games due to budget constraints.

4. Opportunity Cost

Opportunity cost is the cost of the next best alternative that is forgone when a choice is made. In other words, when you choose one thing, you give up the chance to choose another.
Example: If a student spends money on a new phone instead of a study guide, the opportunity cost is the study guide they could have bought.

Presentation Steps

Step 1:
Teacher’s Activities: The teacher will explain the concept of wants and scarcity, providing examples that students can relate to.
Learners’ Activities: Students will list examples of their own wants and identify resources that are limited.

Step 2:
Teacher’s Activities: The teacher will define the scale of preference and illustrate it with real-life examples.
Learners’ Activities: Students will create their own scale of preference for items they want, arranging them by priority.

Step 3:
Teacher’s Activities: The teacher will discuss the concept of choice, explaining how scarcity forces individuals to make decisions.
Learners’ Activities: Students will discuss situations where they had to make a choice due to limited resources.

Step 4:
Teacher’s Activities: The teacher will explain opportunity cost and provide examples, helping students understand how every choice has a cost.
Learners’ Activities: Students will provide examples of opportunity costs they face in daily life.

Assessment

1. Define want and scarcity.
2. Explain the relationship between want and scarcity.
3. What is a scale of preference?
4. How does scarcity lead to choice?
5. Define opportunity cost with an example.

Conclusion

The teacher will review the key points covered, emphasizing the interconnectedness of wants, scarcity, choice, scale of preference, and opportunity cost.

Fill-in-the-Blank Questions

1. A ________ is a desire for goods or services not essential for survival.
2. ________ means resources are limited compared to wants.
3. A ________ arranges wants in order of priority.
4. ________ is the act of selecting one option over another.
5. The cost of the next best alternative forgone is called ________.
6. Scarcity arises because ________ are limited.
7. ________ helps individuals decide which wants to satisfy first.
8. The concept of ________ implies that choices have to be made.
9. ________ is a desire that arises from the need for comfort.
10. The next best alternative foregone when a choice is made is the ________.
11. ________ means there are not enough resources to meet all wants.
12. ________ is an arrangement of wants in order of importance.
13. Choosing one option means giving up another, this is known as ________.
14. ________ is a principle that affects everyday decisions.
15. ________ cost is a key concept in Economics when choices are made.

Class Activity Discussion

1. What is a want in Economics?
   A want is a desire for something that is not essential for survival.
2. How does scarcity affect Economics?
   Scarcity forces people to make choices because resources are limited.
3. What is the scale of preference?
   A scale of preference is a list that ranks wants in order of priority.
4. Why is choice important in Economics?
   Choice allows individuals to select what is most important to them.
5. What is opportunity cost?
   Opportunity cost is the value of the next best alternative that is foregone.
6. Can you give an example of a want?
   Examples of wants include entertainment, luxury items, or vacations.
7. What is scarcity in simple terms?
   Scarcity means there is not enough of something to meet everyone’s needs.
8. How does the scale of preference help in decision-making?
   It helps prioritize wants based on their importance.
9. Why do people need to make choices?
   People make choices because they cannot satisfy all their wants due to limited resources.
10. What is the importance of opportunity cost?
    Opportunity cost helps in understanding the value of alternatives when making decisions.
11. How does scarcity lead to opportunity cost?
    Scarcity limits choices, leading to the need to give up alternatives, which is the opportunity cost.
12. What are examples of limited resources?
    Money, time, and materials are examples of limited resources.
13. What is a basic function of Economics?
    A basic function of Economics is to manage scarcity by making choices.
14. How is choice related to scarcity?
    Scarcity forces people to choose which needs or wants to fulfill.
15. Why is understanding opportunity cost important?
    It helps individuals and societies make better use of limited resources.

Evaluation Questions

1. Define want and give two examples.
2. What does scarcity mean in Economics?
3. Describe the relationship between want and scarcity.
4. What is a scale of preference?
5. How does scarcity affect decision-making?
6. Explain the concept of choice.
7. Why is opportunity cost important in Economics?
8. Give an example of opportunity cost from your daily life.
9. How does scarcity lead to opportunity cost?
10. Describe one way in which the scale of preference helps in decision-making.