Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 1st Term
Week: 12
Age: 15 years
Duration: 45 minutes
Subject: Economics
Curriculum Theme: Economics
Previous Lesson: Basic Economic Problems of Society: Socialism and Mixed Economy.
Topic: Basic Economic Problems of Society
Subject Matter: What to produce, how to produce, for whom to produce, and efficiency of resource use.

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define basic economic problems of society.
State and explain what to produce, how to produce, and for whom to produce.
Explain efficiency of resource use.
Identify factors that influence production and allocation decisions.
Suggest solutions to simple allocation problems using real-life examples.

Affective Domain:

Show concern for wise use of scarce resources in personal and community decisions.
Demonstrate willingness to make responsible choices and accept trade-offs.

Psychomotor Domain:

Construct a simple table showing the three basic economic questions and examples.
Analyse a short case scenario and propose a practical allocation decision.

Participate actively in group discussion and present group solutions.
Work cooperatively to agree on fair and efficient ways of allocating resources.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum
State Unified Scheme of Work
Recommended Economics textbook for Senior Secondary Schools (e.g., Comprehensive Economics for SSS, Book 1)
Encyclopaedia Britannica: Economics
Khan Academy: Basic Economics Concepts
Investopedia: Scarcity

Instructional Materials

The teacher will teach this lesson with the aid of:

Relevant Economics textbooks
Chalkboard/whiteboard and markers
Prepared chart showing “what to produce, how to produce, for whom to produce”
Short case scenarios (e.g., school canteen budget, hospital equipment choice, community water project)

Rationale for the Lesson

This lesson helps pupils understand why societies must make choices because resources are limited. It enables pupils to relate daily decisions in homes, businesses, and government to what to produce, how to produce, and for whom to produce.

Prerequisite/Previous Knowledge

Pupils have basic knowledge of scarcity, choice, and opportunity cost and can mention common needs and wants in the community.

Lesson Content/Board Summary

Basic Economic Problems of Society

Meaning of basic economic problems

Basic economic problems are the main questions every society must answer because resources are scarce and wants are many.

What to produce

What to produce refers to deciding the types and quantities of goods and services to be produced with available resources.

The following are factors that influence what to produce:

Consumers’ needs and wants (demand).
Availability and cost of resources (land, labour, capital, entrepreneurship).
Level of technology and production capacity.
Government policies, laws, and priorities.
Expected profit for producers and revenue for government.

How to produce

How to produce refers to choosing the production method and resource combination used to produce goods and services.

The following are common ways of producing:

Labour-intensive method (uses more labour and less machines).
Capital-intensive method (uses more machines and less labour).
Appropriate technology (uses methods suitable for local skills and resources).

The following are factors that influence how to produce:

Relative cost of labour and capital.
Availability of skilled labour and machines.
Level of technology and power supply.
Time required to produce and meet demand.
Government regulation, safety, and environmental rules.

For whom to produce

For whom to produce refers to deciding who will receive or consume the goods and services produced in the society.

The following are factors that influence for whom to produce:

Income distribution and purchasing power.
Prices of goods and services.
Government subsidies, taxes, and welfare programmes.
Population size and needs of different groups.
Social priorities such as education, health, and security.

Efficiency of resource use

Efficiency of resource use means using scarce resources in the best way so that maximum output is achieved with minimum waste and cost.

The following are indicators of efficient resource use:

Producing at the lowest possible cost for a given output.
Using resources where they are most needed.
Reducing waste of materials, time, and labour.
Increasing output through better organisation and technology.
Choosing options with higher benefits compared to costs.

Simple applications and examples

The following are simple applications of the basic economic problems:

Household: choosing between buying food items and paying school fees (what to produce/consume and for whom).
School: deciding whether to buy new computers or repair classrooms (what to produce and efficiency).
Business: choosing manual packaging or machine packaging (how to produce).
Government: allocating budget to roads, hospitals, and security (what to produce and for whom).

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher presents a short scenario of a limited budget (home or school) and asks pupils to mention choices that must be made and why.
Pupils’ Activity: Pupils respond with examples of choices and mention that resources are limited.
Learning Point: Scarcity leads to choice, and choices lead to economic problems of allocation.

Step 2: Meaning of basic economic problems

Time: 6 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains the meaning of basic economic problems and states the three key questions and efficiency of resource use.
Pupils’ Activity: Pupils state the meaning and list the key economic questions.
Learning Point: Every society must decide what to produce, how to produce, and for whom to produce.

Step 3: What to produce

Time: 7 minutes
Teaching Skill: Explanation and Questioning
Teacher’s Activity: The teacher explains “what to produce” and guides pupils to identify factors that influence production decisions using simple examples.
Pupils’ Activity: Pupils list factors and give examples of goods and services people demand in their community.
Learning Point: Demand, resources, and government policies influence what is produced.

Step 4: How to produce

Time: 7 minutes
Teaching Skill: Demonstration and Explanation
Teacher’s Activity: The teacher contrasts labour-intensive and capital-intensive methods and discusses factors that determine the choice of method.
Pupils’ Activity: Pupils classify examples (handmade vs machine-made) and state reasons for each method.
Learning Point: Production methods depend on costs, technology, and availability of resources.

Step 5: For whom to produce

Time: 6 minutes
Teaching Skill: Discussion
Teacher’s Activity: The teacher guides discussion on how income, price, and government programmes affect who gets goods and services.
Pupils’ Activity: Pupils explain how income affects consumption and give examples of subsidised services.
Learning Point: Income distribution and prices influence for whom goods and services are produced.

Step 6: Efficiency of resource use and solving allocation problems

Time: 12 minutes
Teaching Skill: Guided Practice and Problem Solving
Teacher’s Activity: The teacher explains efficiency and presents a case scenario for groups to propose an allocation decision that reduces waste and meets priority needs.
Pupils’ Activity: Pupils work in groups to suggest solutions and present their choices with reasons.
Learning Point: Efficiency involves using resources wisely to achieve the best results with minimal waste.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define basic economic problems of society.
Explain what to produce and state three factors that influence what to produce.
Explain how to produce and mention two methods of production.
State what is meant by for whom to produce and explain efficiency of resource use.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summary
Teacher’s Activity: The teacher summarises the three basic economic questions and efficiency, then gives an assignment: write a short note using a real-life example to show what to produce, how to produce, and for whom to produce.
Pupils’ Activity: Pupils listen, copy the assignment, and ask questions where necessary.
Learning Point: Scarcity creates choices that must be managed through proper allocation and efficient use of resources.

Lesson Keywords

Scarcity – limited resources compared to unlimited wants.
What to produce – decision on types and quantities of goods and services to produce.
How to produce – choice of production method and resource combination.
For whom to produce – decision on who receives the output produced.
Efficiency – using resources to achieve maximum output with minimum waste and cost.
Allocation – sharing scarce resources among competing uses.

Differentiation

Provide simplified case scenarios and guided prompts for learners who need support, while advanced learners evaluate two alternative allocation plans and state which is more efficient with reasons.

Note for teachers using this lesson plan

Use local examples that pupils can relate to, such as household budgeting, school projects, and market decisions. Encourage pupils to answer in clear definition-and-point form and to link solutions to scarcity, choice, and efficiency.