Economics, Branches and Basic Concepts of Economics for SS 1

Class: SS 1
Term: First Term
Week: 1
Age: 15 years
Duration: 60 minutes
Subject: Economics
Curriculum Theme: Basic Principles of Economics
Focal competence: Using basic economic concepts to influence decisionmaking
Key competencies/values: Collaboration
Skills:

• Identifying and classifying economic activities based on micro and macro components

Previous Lesson: Basic Economic Problems of Society: What, How and
Topic: Concepts Of Economics
Subject Matter: meaning of economics, microeconomics, macroeconomics, scarcity and wants, choice and opportunity cost

Specific Objectives

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

Cognitive Domain

• Define economics.
• Differentiate between microeconomics and macroeconomics.
• Explain the basic concepts of Economics, including scarcity, wants, scale of preference, choice, and opportunity cost.

Affective Domain

• Appreciate the importance of making informed economic choices.
• Participate collaboratively in discussions about economic principles.

Psychomotor Domain

• Identify examples of microeconomic and macroeconomic activities.
• Classify economic activities into micro and macro components.

Social Domain

• Engage in constructive discussions about resource allocation and decision-making.

Reference Materials

The following resources were used in planning this lesson:

• 2025 New Revised Senior Secondary Education Curriculum (SSEC)
• Relevant State Unified Scheme of Work
• The HeadTeacher Scheme of work For The New Revised Senior Secondary Education Curriculum (SSEC)
• A suitable Economics textbook for Senior Secondary School 1

Instructional Materials

The teacher will teach this lesson with the aid of:

• Charts showing branches of Economics (Microeconomics and Macroeconomics)
• Charts illustrating concepts like scarcity, wants, and opportunity cost
• Whiteboard and markers
• Relevant Economics textbooks

Rationale for the Lesson

This lesson introduces students to fundamental economic concepts that are essential for understanding how individuals and societies manage limited resources to satisfy unlimited wants. It lays the groundwork for critical thinking about economic decisions and resource allocation, which are crucial for personal finance and national development.

Prerequisite/Previous Knowledge

Students should have a basic understanding of human needs and wants, as well as the idea that resources are not always available in unlimited quantities.

Lesson Content/Board Summary

Concepts Of Economics

Meaning of Economics

Economics is a social science that studies how individuals, businesses, and societies make choices about allocating scarce resources to satisfy their unlimited wants and needs. It examines how people interact within markets to determine what goods and services are produced, how they are produced, and for whom they are produced.

Branches of Economics

Economics is broadly divided into two main branches:

1. Microeconomics: This branch focuses on the economic behaviour of individual units within an economy. It studies how individual households and firms make decisions, how they interact in specific markets, and how prices and quantities of goods and services are determined.
2. Macroeconomics: This branch deals with the economy as a whole. It examines aggregate economic phenomena such as national income, inflation, unemployment, economic growth, and government economic policies. Macroeconomics looks at the big picture of economic performance.

Differences Between Microeconomics and Macroeconomics

The key differences between microeconomics and macroeconomics are:

1. Scope of Study: Microeconomics studies individual economic units (consumers, firms, specific markets), while macroeconomics studies the entire economy (national income, aggregate demand, aggregate supply).
2. Objectives: Microeconomics aims to determine prices and quantities in individual markets, and how resources are allocated. Macroeconomics aims to achieve economic growth, full employment, and price stability.
3. Tools Used: Microeconomics uses tools like demand and supply analysis for specific goods, production costs, and market structures. Macroeconomics uses tools like aggregate demand and aggregate supply models, fiscal policy, and monetary policy.
4. Examples: Microeconomic issues include the price of yam, wages of a particular worker, or the output of a specific company. Macroeconomic issues include the national unemployment rate, the country’s Gross Domestic Product (GDP), or the general price level (inflation).

Basic Economic Concepts

Scarcity

Scarcity is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources. It means that there are not enough resources (land, labour, capital, entrepreneurship) to produce all the goods and services that people desire. Scarcity forces individuals and societies to make choices.

Wants

Wants are human desires for goods and services that provide satisfaction. Unlike needs (which are essential for survival), wants are things people would like to have but are not strictly necessary. Human wants are generally unlimited and insatiable, meaning they can never be fully satisfied.

Scale of Preference

A scale of preference is a list of an individual’s or society’s wants arranged in order of their importance or priority. Due to scarcity, people cannot satisfy all their wants, so they must rank them from the most urgent to the least urgent. This ranking helps in making rational choices.

For example, a student’s scale of preference might be:

1. Textbooks
2. School fees
3. New phone
4. Designer clothes
5. Vacation trip

Choice

Choice is the act of selecting one option from a set of alternatives. Because resources are scarce and wants are unlimited, individuals and societies must make choices about which wants to satisfy and which to forgo. Every economic decision involves a choice.

Opportunity Cost

Opportunity cost is the value of the next best alternative that must be given up when a choice is made. It is the cost of the forgone alternative. When you choose to satisfy one want, you automatically give up the opportunity to satisfy another want that was ranked next on your scale of preference.

For example:

1. If a student chooses to spend N5,000 on a new textbook, and the next best thing they could have bought was a new pair of shoes, then the opportunity cost of the textbook is the new pair of shoes.
2. If a government decides to build a new hospital, the opportunity cost might be a new school that could have been built with the same resources.

Teaching Methods/Instructional Techniques

Discussion, Explanation, Question and Answer, Guided Practice, Group Work

Instructional Procedures

Step 1: Introduction

Time: 5 minutes

Teaching Skill: Questioning/Engaging

Teacher’s Activity: The teacher greets the students and asks them about their daily choices, like choosing what to eat or what to wear, linking these to the idea of limited resources. The teacher then introduces the topic: Concepts of Economics.

Pupils’ Activity: Pupils respond to the questions and listen attentively to the introduction of the topic.

Learning Point: Introduction to Economics

Step 2: Meaning of Economics

Time: 10 minutes

Teaching Skill: Explanation/Discussion

Teacher’s Activity: The teacher explains the meaning of Economics as a social science dealing with resource allocation to satisfy wants. The teacher guides an interactive discussion on why Economics is considered a science.

Pupils’ Activity: Pupils listen, ask questions, and contribute to the discussion on the meaning of Economics and its scientific nature.

Learning Point: Definition of Economics

Step 3: Branches of Economics (Microeconomics)

Time: 10 minutes

Teaching Skill: Explanation/Illustration

Teacher’s Activity: The teacher introduces the two main branches of Economics, starting with Microeconomics. Using charts, the teacher explains what Microeconomics studies, providing examples related to individual consumers and firms.

Pupils’ Activity: Pupils observe the charts, listen to the explanation, and identify examples of microeconomic activities.

Learning Point: Understanding Microeconomics

Step 4: Branches of Economics (Macroeconomics and Differentiation)

Time: 10 minutes

Teaching Skill: Explanation/Comparison

Teacher’s Activity: The teacher explains Macroeconomics, contrasting it with Microeconomics using the chart. The teacher highlights the key differences between the two branches with further examples.

Pupils’ Activity: Pupils listen, compare the two branches, and ask questions for clarification on the differences.

Learning Point: Micro vs. Macroeconomics

Step 5: Basic Concepts: Scarcity and Wants

Time: 7 minutes

Teaching Skill: Explanation/Real-life examples

Teacher’s Activity: The teacher introduces the concepts of scarcity and wants, explaining how they are fundamental to economic problems. The teacher uses real-life examples to make the concepts concrete for students.

Pupils’ Activity: Pupils listen, relate the concepts to their own experiences, and contribute examples of scarcity and wants.

Learning Point: Scarcity and Wants

Step 6: Basic Concepts: Choice, Scale of Preference, and Opportunity Cost

Time: 8 minutes

Teaching Skill: Explanation/Problem Solving

Teacher’s Activity: The teacher explains the concepts of choice, scale of preference, and opportunity cost, emphasizing their interconnectedness. The teacher gives examples and guides students to prioritize their wants to understand opportunity cost.

Pupils’ Activity: Pupils listen, create their own simple scale of preference, and identify the opportunity cost of their choices.

Learning Point: Choice and Opportunity Cost

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

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

1. What is Economics?
2. Differentiate between microeconomics and macroeconomics.
3. Explain the concept of scarcity.
4. What is opportunity cost? Give an example.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Assessment of understanding

Step 8: Note-Taking

Time: 10 minutes

Teaching Skill: Guided Writing

Teacher’s Activity: The teacher guides pupils/students to copy the essential Board Summary notes on the meaning of Economics, its branches, and basic concepts into their notebooks.

Pupils’ Activity: Pupils/students copy the notes carefully into their notebooks.

Learning Point: Recording lesson notes

Step 9: Conclusion

Time: 5 minutes

Teaching Skill: Summarizing

Teacher’s Activity: The teacher briefly summarizes the main points of the lesson, reiterating that Economics helps us understand how to make the best choices with limited resources to satisfy our numerous wants. The teacher encourages students to observe economic concepts in their daily lives.

Pupils’ Activity: Pupils listen to the summary and reflect on the lesson’s key takeaways.

Learning Point: Consolidation of concepts

Continuous Assessment/Further Study

Type: Homework

Instruction: Answer the following questions in your notebook:

1. In your own words, explain why scarcity is the central problem in Economics.
2. Provide three examples of microeconomic issues and three examples of macroeconomic issues in Nigeria.
3. List five of your personal wants and arrange them in a scale of preference. Identify the opportunity cost if you choose to satisfy your second most important want.

Lesson Keywords

• Economics – The study of how societies use scarce resources to satisfy unlimited wants.
• Microeconomics – The study of individual economic units like households and firms.
• Macroeconomics – The study of the economy as a whole, including national income and inflation.
• Scarcity – The fundamental problem of having unlimited wants with limited resources.
• Wants – Human desires for goods and services.
• Scale of Preference – A list of wants arranged in order of importance.
• Choice – The act of selecting one option over others due to scarcity.
• Opportunity Cost – The value of the next best alternative forgone when a choice is made.

Differentiation

For students who grasp concepts quickly, encourage them to research current economic news and identify whether the issues discussed are microeconomic or macroeconomic. For students needing more support, provide simplified examples and visual aids, and allow for peer-tutoring during group activities.

Suggested Lesson Videos

For further understanding, students can search on YouTube for:

• “Introduction to Economics for SS1”
• “Microeconomics vs Macroeconomics explained”
• “Scarcity, Choice, and Opportunity Cost”