Meaning of Basic Economic Problems for SS 1

Class: SS 1
Term: First Term
Week: 3
Age: 15 years
Duration: 60 minutes
Subject: Economics
Curriculum Theme: Basic Principles of Economics
Focal competence: Identifying economic problems and suggesting solutions
Key competencies/values: Collaboration

Skills:

• Analyzing economic problems

Previous Lesson: Importance of Economics and Why is Economics a science?
Topic: Basic Economic Problems
Subject Matter: Meaning of Basic Economic Problems

Specific Objectives

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

Cognitive Domain

• define Basic Economic Problems;
• identify the basic economic problems.

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
• A suitable Economics textbook for Senior Secondary 1
• The HeadTeacher Scheme of work For The New Revised Senior Secondary Education Curriculum (SSEC)

Instructional Materials

The teacher will teach this lesson with the aid of:

• Textbooks
• Charts/pictures showing different economic activities (e.g., farming, manufacturing, services)
• Whiteboard/Chalkboard
• Markers/Chalk

Rationale for the Lesson

This lesson is important because it lays the foundation for understanding how societies make choices in the face of limited resources. By grasping the basic economic problems, students can better comprehend economic decision-making at individual, household, business, and national levels, fostering critical thinking about resource allocation.

Prerequisite/Previous Knowledge

Students should have a basic understanding of human wants and the concept of scarcity from previous lessons.

Lesson Content/Board Summary

Basic Economic Problems

Every society, regardless of its level of development, faces fundamental economic problems. These problems arise because human wants are unlimited, while the resources available to satisfy these wants are limited or scarce. This disparity between unlimited wants and limited resources forces societies to make choices.

Meaning of Basic Economic Problems

Basic economic problems refer to the fundamental questions that every society must answer regarding the allocation of its scarce resources to satisfy its unlimited wants. These problems are universal and stem directly from the concept of scarcity and the need for choice.

Fundamental Economic Problems

Due to scarcity, every society must address three core economic questions:

1. What to produce?
2. How to produce?
3. For whom to produce?

What to Produce?

This question deals with the types and quantities of goods and services that an economy should produce. Since resources are limited, a society cannot produce everything its members desire. Therefore, it must decide which goods and services are most essential or desired and in what amounts. This involves making choices about priorities.

Examples:

1. Should a country produce more food crops or industrial goods?
2. Should a government invest more in education and healthcare or in defence and infrastructure projects?
3. For a business, should it produce more cars or more motorcycles?

How to Produce?

This question concerns the methods and techniques that will be used to produce the chosen goods and services. It involves deciding on the combination of resources (land, labour, capital, entrepreneurship) and the technology to be employed. The goal is often to produce goods and services efficiently, using the least amount of resources or at the lowest cost possible.

Examples:

1. Should farming be done using traditional methods (manual labour) or modern methods (tractors and machinery)?
2. Should a factory rely more on human labour (labour-intensive) or on machines (capital-intensive)?
3. Should electricity be generated using coal, hydro, or solar power?

For Whom to Produce?

This question addresses how the goods and services produced will be distributed among the members of society. It concerns who gets to consume the output of the economy. This involves decisions about income distribution, wealth, and access to essential services.

Examples:

1. Should goods be distributed based on income, need, or effort?
2. Should essential services like healthcare and education be free for everyone or only for those who can afford them?
3. In a market, who gets the new cars produced – those with higher incomes or those who need them most?

Teaching Methods/Instructional Techniques

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

Instructional Procedures

Step 1: Introduction

Time: 5 minutes

Teaching Skill: Activating Prior Knowledge

Teacher’s Activity: The teacher greets the students and asks them to recall the meaning of scarcity and choice from the previous lesson. The teacher then introduces the topic by explaining that scarcity leads to fundamental problems every society must solve.

Pupils’ Activity: Pupils respond to questions about scarcity and choice and listen attentively to the introduction.

Learning Point: Scarcity and choice recall

Step 2: Meaning of Basic Economic Problems

Time: 10 minutes

Teaching Skill: Explanation/Definition

Teacher’s Activity: The teacher explains the meaning of basic economic problems, emphasising that they arise from unlimited wants and limited resources. The teacher writes the definition on the board.

Pupils’ Activity: Pupils listen, ask questions for clarification, and attempt to define the terms in their own words.

Learning Point: Economic problems meaning

Step 3: Explaining “What to Produce?”

Time: 10 minutes

Teaching Skill: Explanation/Examples

Teacher’s Activity: The teacher explains the first basic economic problem, “What to produce?”, providing examples from household, business, and national levels (e.g., food vs. clothes, schools vs. hospitals). The teacher encourages students to give their own examples.

Pupils’ Activity: Pupils listen, contribute examples, and discuss the choices involved.

Learning Point: “What to produce” concept

Step 4: Explaining “How to Produce?”

Time: 10 minutes

Teaching Skill: Explanation/Examples

Teacher’s Activity: The teacher explains the second basic economic problem, “How to produce?”, discussing different production methods (e.g., labour-intensive vs. capital-intensive) and their implications. The teacher uses local examples like farming methods.

Pupils’ Activity: Pupils listen, compare different production methods, and offer examples.

Learning Point: “How to produce” concept

Step 5: Explaining “For Whom to Produce?”

Time: 10 minutes

Teaching Skill: Explanation/Discussion

Teacher’s Activity: The teacher explains the third basic economic problem, “For whom to produce?”, discussing how goods and services are distributed in society. The teacher asks students to consider different ways of distribution (e.g., based on income, need).

Pupils’ Activity: Pupils listen, discuss distribution methods, and share their perspectives.

Learning Point: “For whom to produce” concept

Step 6: Application and Activity

Time: 10 minutes

Teaching Skill: Guided Practice/Collaboration

Teacher’s Activity: The teacher divides students into small groups and guides them to create an information card. Each card should identify one economic problem within their immediate community and suggest a possible solution, explaining which of the three basic problems it relates to.

Pupils’ Activity: Pupils collaborate in groups to identify problems, suggest solutions, and create their information cards.

Learning Point: Economic problem application

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 are basic economic problems?
2. List the three basic economic problems.
3. Give an example of a “What to produce?” decision in your community.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Basic problems 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 and types of basic economic problems into their notebooks.

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

Learning Point: Economic problems notes

Step 9: Conclusion

Time: 5 minutes

Teaching Skill: Consolidation

Teacher’s Activity: The teacher briefly summarises the main points of the lesson, reiterating that scarcity forces all societies to make choices about what, how, and for whom to produce. The teacher encourages students to observe these problems in their daily lives.

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

Learning Point: Lesson consolidation

Continuous Assessment/Further Study

Type: Homework

Instruction: Answer the following questions in your Economics notebook:

1. Explain in your own words why scarcity leads to basic economic problems.
2. Identify a current economic challenge in Nigeria and explain how it relates to one of the three basic economic problems discussed in class.
3. Suggest two ways a household might address the “What to produce?” and “For whom to produce?” problems.

Lesson Keywords

• Scarcity – The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.
• Choice – The act of selecting among alternatives, necessitated by scarcity.
• Basic Economic Problems – The fundamental questions every society must answer regarding the allocation of scarce resources to satisfy unlimited wants.
• What to produce – The decision about the types and quantities of goods and services an economy will make.
• How to produce – The decision about the methods and techniques used to create goods and services.
• For whom to produce – The decision about how the produced goods and services will be distributed among the population.

Differentiation

Support: Provide simpler examples and visual aids for students who struggle with abstract concepts. Pair weaker students with stronger ones for the group activity. Offer sentence starters for defining terms.

Extension: Challenge advanced students to research how different economic systems (e.g., capitalism, socialism) attempt to solve the basic economic problems. Ask them to analyse the trade-offs involved in different production choices.

Suggested Lesson Videos

Search YouTube for “Basic Economic Problems SS1 Economics” or “What are the three basic economic questions?”