5 minutes

STARTER ACTIVITY
In groups, discuss what is likely to happen to the quantity of goods and services,
such as cars, computers and computer accessories, food, clothing and financial
services, that people will want in the future and whether it will be possible to meet
these wants

LESSON OBJECTIVE(S): 1
 TOPIC: THE SCOPE OF ECONOMICS

LESSON OBJECTIVE(S) KEY WORDS

1. Ends
1. All of you will describe the nature of the economic 2. Scares means
problems. 3. Alternative uses
(ii) Some of you will explain why scare resources leads to 4. Social sciences
choice. 5. Free goods
(iii) Evaluate the difference between economic goods and 6. Needs
free goods 7. Resources
8. Goods

LESSON OBJECTIVE(S) 2
 TEACHER INPUT: WHAT IS ECONOMICS?

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 TEACHER INPUT: WHAT IS ECONOMICS
The English word economics is derived from the ancient Greek word oikonomia—meaning
the management of a family or a household. It is thus clear that the subject economics was
first studied in ancient Greece.
What was the study of household management to Greek philosophers like Aristotle (384-
322 BC) was the “study of wealth” to the mercantilists in Europe between the sixteenth
and eighteenth centuries and a social science which studies human behavior in relation to
their wants in the 1930s.
Since then, the subject has travelled a long way and this Greek or Smithian definition
serves our purpose no longer. Over the passage of time, the focus of attention has been
changed. As a result, different definitions have evolved.
These definitions can conveniently be grouped into(i) Smith’s Wealth definition; (ii) 4

Marshall’s Welfare definition; and(iii) Robbins’ Scarcity definition.

 TEACHER’S INPUT
 Smith’s wealth definition: Adam Smith and his followers regarded economics as a
science of wealth which studies the process of production, consumption and
accumulation of wealth. His emphasis on wealth as a subject-matter of economics is
implicit in his great book— ‘An Inquiry into the Nature and Causes of the Wealth of
Nations or, more popularly known as ‘Wealth of Nations’—published in 1776.
 Marshal’s definition: Alfred Marshall in his book ‘Principles of Economics published in
1890 placed emphasis on human activities rather than on wealth. Marshall defines
economics as “a study of men as they live and move and think in the ordinary business
of life.” He argued that economics, on one side, is a study of wealth and, on the other, is
a study of man.
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 TEACHER’S INPUT
 Robbin’s scarcity definition: The most accepted definition of economics was given by
Lord Robbins in 1932 in his book ‘An Essay on the Nature and Significance of Economic
Science. According to Robbins, neither wealth nor human welfare should be considered
as the subject-matter of economics. His definition runs in terms of scarcity: “Economics
is the social science which studies human behaviour as a relationship between ends and
scarce means which have alternative uses.”
From this definition, one can build up the following propositions:
 Human wants are unlimited (ends); wants multiply—luxuries become necessities. There
is no end of wants
 The Scarce means refers to resources used to satisfy wants are scarce in relation to
demands.
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 Alternative uses refers to the many things one resource can be used to satisfy.
 STUDENT ACTIVITY
1. In groups, discuss what is likely to happen to the quantity of
goods and services, such as cars, computers and computer
accessories, food, clothing and financial services, that people
will want in the future and whether it will be possible to meet
these wants
 STUDENT ACTIVITY 2

In pairs ask learners to consider the similarities and

differences in alternate methods of energy
provision e.g. wood/coal burning versus wind or
solar power; petrol cars versus electric cars. Which
method(s) will provide energy furthest into the
future and why?
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15 minutes

CORRECTION OF STUDENTS’ ACTIVTY 1

AFL (RAG RATING)
 The quantity of items such as cars will increase as the
80% +
population increases thereby making it difficult to meet
everyone wants because resources to make them reduces. 60% - 79%

 The natural sources of energy will last farthest than man made 59% & below

because it is cost effective and will not diminish. There will

always be sun light but crude oil wells for petrol do get dry.

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 PLENARY

 Describe the term Economics

 State the best definition of Economics that stand the test of
time. Give reasons why
 Name:

Explore recent newspapers, cutting out

examples of Economics news stories that
reflect the different definitions of
Economics. The display is titled ‘Economics
in the News’
 Week 2:
Basic Economics concepts

LESSON OBJECTIVE(S) KEY WORDS

1. Ends
(i) All of you will describe wants.
2. Scares means
(ii) Most will be able to create a scale of preference for a 3. Alternative uses
task. 4. Social sciences
(iiI) Some of you will explain why scare resources which 5. Free goods
leads to choices. 6. Needs
7. Resources
8. Goods
LESSON OBJECTIVE(S) 12
 TEACHERS INPUT
 Wants refers to the desire or wish to own goods or services that give satisfactions.
 Scarcity refers to the limited resources needed to satisfy the numerous human wants.
Scarcity is the major reason why we study economics. The government, producers,
consumers, individuals all face the problem of scarcity because of limited resources at
their disposal.
 Choices refers to the decision one has to take as a result of scarces resources.
 Opportunity cost refers to the second best alternative forgone. It is the sacrifice made
in order to satisfy another want.
 Scale of Preference refers to the rank ordering of wants in order of importance. It is
the itemizing of things a person will need from the most important to the least 13

important need.
 WHY IS A SCALE OF PREFERENCE NECESSARY?

 It is a good technique used to rank our needs according to

importance.
 It assist individual make rational decision
 it aids wise use of resources
 it helps us forgo wants that are not pressing at the point in time.
 it assist individuals show the needs according to their importance at a
glance, making it easy to identify the most important needs.
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 STUDENT ACTIVITY 1

Fill in the blank spaces with the correct words.

desires, things, choices, most, least, opportunity cost, forgone, scares, wants
In Economics, it is said that wants are also referred to as _____________ for goods
and services which may not necessarily be paid for. However, needs are
___________ we can not do without. To satisfy our _______ and needs____________
would have to be made from the available ________ resources. When making
choices, the _______________ is the second best alternative _____ after you might
have ranked your needs from the ______ important to the ______ important.

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 DAY 2: OPPORTUNITY COST
 Choosing between goods and services involves a very special cost, imagine that you have just bought the list
of items below. Now imagine that you were unable to get any of these item and had to buy second-best
choice instead. Copy and complete the table.

What I have just bought What I could have bought instead?

DVD recorder
Box of chocolates
A ticket to the movies

16
 TEACHER’S INPUT: OPPORTUNITY COST

 In the second column you have listed your second –best choice alternatives to
the products in column one. For example, if you had bought a DVD recorder, you
may not go for a holiday. The benefit of the holiday given up is the real cost of
owing the DVD recorder. The real cost of choosing one thing is known as the
opportunity cost.
 Opportunity cost arises not only when we buy things, but also when we choose
what goods and services to produce. Eg, in deciding to use a piece of land to build
a new sports complex, we may be going without the benefit of a farmland to
grow food.
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 STUDENT ACTIVITY:
THE COST OF MAKING CHOICES
A factory employs 10 people and has 2 machines able to produce and pack 300 glass
bottles each day. The same employees and machines could instead be used in the same
factory to make and pack 400 glass jars each day.
The same 10 employees used to work on a farm and were skilled at growing and
harvesting corn until the farm was sold and the factory was built on the farmland.
Compared to the farm the factory is noisy and pollutes the air with smoke.
1. What is the opportunity cost to the factory owners of using the 10 employees and 2
machines to make 300 bottles each day.
2. What is the opportunity cost to the employees of working in the factory?
3. what is the opportunity Cost to the society the factory is in?
15 minutes

CORRECTION OF STUDENTS’ ACTIVTY 1

AFL (RAG RATING)
 The opportunity cost of the factory owner of using the 10
80% +
employees and 2 machines is to make and pack 400 glass jars
each day. 60% - 79%

 The opportunity cost to the employees is the skills and the 59% & below

work on the farm forego. They also forgo opportunities of

working in other farmlands.
 The opportunity cost to the society is the forgone farmland
that can be used to grow and harvest corn which serves as
food to the society.
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 PLENARY

 Describe the term Opportunity cost

 What do you understand by real cost
5 minutes

STARTER ACTIVITY
Below is a list of resources. See how many alternative uses you can find for them,
that is, see how many different goods and services they can help produce.
1. An area of farmland
2. A person who is good at maths
3. An egg

LESSON OBJECTIVE(S): 21
 DAY 3: OTHER CONCEPTS IN ECONOMICS
 Want: This simply means the desire or wish to own goods or services that give
satisfaction.
 Scarcity: This refers to the limited available resources used in satisfying the unlimited
human wants. Here resources are scares relative to their wants.
 Scale of Preference: This is the rank ordering of wants from the most important to the
least important.
 Choice: This involves decision making from numerous human wants.
 Opportunity Cost: this is the alternative foregone or sacrifice made in order to satisfy
another want. It is the need unsatisfied in order to satisfy another more pressing need.
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 TASK
The people living in the north of anytown and the people living on the housing
development are locked in disagreement. They both want the local government to satisfy their
wants, but only one of them can win.
Split up into groups of three or four students. Half of the groups are to represent the
people in the north of anytown and the other half are to represent the people from the housing
development.
1 In your group write a speech to be read to the class outlining why your group’s wants
should b satisfied by the local government.
2. Choose one pair of opposing groups. These groups now read their speeches to the
whole class and are then given four minutes to argue their case. The rest of the class will be the
local government which then decides by the majority vote how it will spent the $10 million.
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 PLENARY

 Describe opportunity Cost

 Explain the term Choice
 Juxtapose between needs and wants

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 HOME WORK

Fill up the table with your needs and wants then write a
sentence to explain what these two words mean .
NEEDS WANTS REASON
Eggs Smart TV Eggs are food
Televisions bring pleasure but not
essential for survival.

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