College Prep Economics
Unit 1: Fundamental Economic Concepts
Day 1: Scarcity, Trade-offs, Opportunity Cost
SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
b. Define and give examples of productive resources (factors of production) (e.g., land (natural), labor (human), capital (capital goods), entrepreneurship).
c. List a variety of strategies for allocating scarce resources.
d. Define opportunity cost as the next best alternative given up when individuals, businesses, and governments confront scarcity by making choices.
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
Focus Questions: How do we define scarcity, trade-offs, and opportunity cost?
1.Warm Up: Based on introductory lesson, provide your own description of economics. (Use
Today’s Meet, Smart Responders Word Cloud Widget, Schoology, or have them T-P-S and
write/call out).
2.Based on previous classes, most students should identify that economics has something to do
with making choices. Use their descriptions to segue into activity: We have said many times that
economics is all about CHOICES! It is now time tomake choices!
3.Give students case study scenario. We have a treasure map, and we are going to take a ship to a
small island in the South Pacific to find this map. We travel to California, charter a ship, and head
out. On the way... we run across a reef and our ship starts sinking. We can see land in sight and
we think we can swim it. Below decks, we have many items. (Show students list of items.) We only
have the time and strength to save SIX items.
4.In groups, students must come to a consensus on the six items they would save. They will list
these choices on a piece of poster paper. They have to be ready to justify their choices if
challenged. They also need to put the seventh item they would choose if they could save a
seventh item.
5.Discuss choices as a group. Point out the seventh choice over and over, saying, "So this was your
next best alternative."
6.Have students generalize and discuss. What problems did you face in this scenario? Write
student ideas down. Explain to students that these ideas they are discussing are the fundamental
economic concepts of scarcity, tradeoffs, and opportunity cost.
7.Frayer model on scarcity. Contrast to a shortage. Follow with defining trade-off and opportunity
cost. Develop flow chart as a class. Scarcity leads to trade-offs which lead to opportunity costs.
Emphasize that incentives influence the choices we make.
8.Closing: Socrative Exit Ticket: How well did you learn today’s material? What did you learn?
Teacher’s Choice.
Day 2: Factors of Production
SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
b. Define and give examples of productive resources (factors of production) (e.g., land (natural), labor (human), capital (capital goods), entrepreneurship).
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
Focus Question: What are the four factors of production? Give an example of each of the four factors.
1.Warm UP: Trade-off and Opportunity Cost Scenario (In Smart Notebook)
2.Movie Clip Analysis from Batman: Students discuss in terms of economic concepts from previous
day. Use to segue..what are Batman's resources that he has available to him in this clip?
3.Introduce concept of Factors of Production using a 4-part graphic organizer with “Factors of
Production in the center. Have students list out examples of each factor of production as we go
through definitions. (After each one is introduced, have them T-P-S to come up with examples.)
4.Factors of Production classification activity. Students are given a reading and must underline and
classify all factors of production they see in the passage. Discuss as a class.
5.Cartoon Analysis: Using OPTIC strategy, have students develop understanding of cartoon and
what ideas the cartoonist is trying to convey.
6.After discussing cartoon, recap all we have discussed about Factors of Production. Now ask
students, "Why are we studying this?" Why do Factors of Production matter? Discuss as a class.
Lead students to understand that factors of production form the building blocks of the economy.
7.Closing: Socrative Exit Ticket- How well did you learn the material today? What did you learn
today? Teacher’s Choice
Day 3: Allocation of Resources
SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
b. Define and give examples of productive resources (factors of production) (e.g., land (natural), labor (human), capital (capital goods), entrepreneurship).
c. List a variety of strategies for allocating scarce resources.
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
Focus Question: What does it mean to “allocate”? What are some strategies for allocating resources?
1.Warm Up: Using Schoology, have students complete a quick quiz classifying
2.Ask students: What is the fundamental problem with all of these resources? Students discuss. At
some point, they should realize that all of these resources are subject to the fundamental
problem of scarcity.
3.Explain to students that when resources are scarce, all societies face the fundamental problem of
how to allocate these resources. Have students discuss the term "allocate" with elbow partners.
What does this term mean?
4.Place students into groups of four. Place one lollipop on the desks for four students. Have
students come up with various strategies for allocating the lollipop.
5.As a class, develop a list of allocation strategies for the lollipop. Lead students to decide which
ways we primarily use in allocating goods, services, and resources in our society. (Price, first-
come-first-serve, lottery). Ask students which one they think is most fair? Least fair? Discuss and
students must give reasoning.
6. Group Dialysis Machine Activity – Students must decide which patients will get access to dialysis
treatment. Each group shares. Discuss reasons for allocating the machine the ways they
decided.
7.Today's Point: Give students a recap of the reasoning they have been through during class. 1) All
resources are scarce. 2) Societies must find a way to allocate these resources. 3) Some methods
of allocation may be fair to some and not fair to others.
8.Closing: Socrative Exit Ticket – How well did you learn today’s material? What did you learn?
Teacher’s Choice
Day 4: Standard 1 Quiz
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
b. Define and give examples of productive resources (factors of production) (e.g., land (natural), labor (human), capital (capital goods), entrepreneurship).
c. List a variety of strategies for allocating scarce resources.
d. Define opportunity cost as the next best alternative given up when individuals, businesses, and governments confront scarcity by making choices.
1.Warm Up: Have the following list of words on the board: Scarcity, Trade-off, Opportunity Cost,
Factors of Production, Allocation. In pairs, have students create a mind map, showing how these
concepts are connected. Use Popplet.
2.UsingApple TV, show several examples of how concepts are linked. Discuss and clarify. Use
anchor charts to reinforce.
3.Give students summative assessment on topics.
4. After assessment, students use iPads to watch a 3-minute video on thinking at the margin.
Day 5: Thinking at the Margin
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade offs between two options.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
Focus Question: What does the phrase “thinking at the margin” mean? What is a rational decision?
1.Warm Up: Make a list of decisions that are "all or nothing" and decision that you can make that
involve "doing a little more, or a little less." Discuss as a class.
2.Explain to students that much of economics centers around those "little more, little less"
decisions. In economics, this is called making a decision at the margin.
3.Place the statement on the board (from basic economic tenets on day 2) that says "Economic
thinking is marginal thinking." Focus on the word marginal. What does this mean? Lead students
to understand that the term marginal means "additional."
4.Activity: Show students rug on the floor. Tell them the rug is a lake. The "lake" is very polluted.
Have it filled with coffee grounds, grass, hole-punch waste, etc. Have students read two opinions
on what our community should do about the lake.
5.Using Poll Everywhere, have students vote on which opinion they agree with the most. Discuss.
Make it clear to students that each economy has limited resources. Any resources that are used
for the lake cannot be used on other valuable projects.
6.Lake Cleaning Simulation: Have three volunteers come to the front. Two will clean the lake and
one will hold clear plastic ziploc bags. Give 30 minutes on the clock. Students may not pick up the
rug and shake it. After 30 seconds, the class will see that the lake is cleaner, but not completely
clean. Should we clean it again? Refer back to limited resources.
7.Have students clean the lake two more times. Notice that for the same money paid to cleaners,
the community received less benefit.
8.Drawing conclusions: What happened each additional time we cleaned the lake? Develop
concept of diminishing marginal utility. Revote on two options.
9.Another example- Would you see the movie the third time?
10.Using the lake and movie example, have students explain the following statement: Marginal
benefit should equal or exceed marginal cost for a decision to be rational. Discuss in partners.
11.Closing: Socrative Exit Ticket
Day 6: Production Possibilities Curve
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade offs between two options.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
Focus Question: What does a production possibilities curve show?
1.Warm Up: Students come in and pick up resource strip. Students must cut out strip, glue the
strip, and decide whether to make triangles or squares. (Resource materials are in attachments
under Smart Notebook File).
2.Ask students, what economic concepts have you just demonstrated? (Factors of Production in
resources, labor; Scarcity - only one resource strip; Trade-off and opportunity cost (If I made two
triangles, I had to give up a square); Decisions at the margin - did not have to do all triangles or all
squares.)
3. Show economic reasoning slide. We face scarcity of resources. We must decide how to allocate
these resources. When we make these decisions, we face opportunity costs. All of these
concepts can be shown diagrammatically on a Production Possibilities Curve (PPC).
4.Develop a PPC using data from the class on triangles and squares. Use the wording, "Was it
possible to produce....?" Students must identify opportunity cost. Develop in table first, then
plot data in graphical manner. Discuss what the graph is showing.
5.Checkpoint: What is the PPC showing us? Have students respond via Schoology.
6.Show an increasing opportunity cost curve. Discuss the difference with students. Explain to
students that several concepts can be seen on all PPCs. These concepts are scarcity, tradeoffs,
opportunity cost, and efficiency. Take students through a series of questioning to have them
show how all these can be seen. Develop idea of underutilization of resources, as well as points
that are currently unattainable.
7.Closing: Socrative Exit Ticket
.
Day 7: Production Possibilities Practice
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade offs between two options.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
Focus Question: What does a production possibilities curve show?
1.Warm Up: Assume that an economy produces two goods - watches and donuts using all of its
resources. If the society wants to increase production of watches, what must happen? Why?
Explain using a production possibilities curve.
2.Student PPC Practice. Using various resources, have students work in pairs to practice the PPC.
Assign a few exercises at a time and stop class to review exercises periodically. Teacher will walk
around, assist, and take notes regarding who seems to get it and who may need more practice.
3.Closing: Socrative Quiz – Students answer questions about PPC on board.
Day 8: Standard 2 Assessment
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade-offs between two options.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
EQ: How does scarcity of resources influence the choices of individuals, businesses, and government?
Focus Question: What does a production possibilities curve show?
1.Warm Up: Give students a data set and have them construct a production possibilities curve
from the data. Have them discuss with an elbow partner all possible information they can
construe from the graph. Discuss as a class.
2.Pass out Standard 2 assessment. Allow students majority of class time to work.
3.When students finish quiz, have them use iPads to watch flipped video on the concept of
standard of living.
4. Closing: Review quiz if time.
Day 9: Productivity
SSEF6 The student will explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education, and training of people.
a. Define productivity as the relationship of inputs to outputs.
b. Give illustrations of investment in equipment and technology and explain their relationship to economic growth.
c. Give examples of how investment in education can lead to a higher standard of living.
EQ: How do individuals, businesses, and governments seek to make the most of their scarce resources?
Focus: What are ways that businesses and individuals can increase their productivity?
1.Warm Up: Have a sample PPC on the board with an unattainable point drawn, labeled U. How do we get to this point?
Have students submit ideas via Schoology.
2.Focus in on any Schoology response that focuses, not on getting MORE resources, but on using the resources that we
have in a better way. Explain to students that this is getting to the concept of improving productivity.
3.Put the word "productivity" on the board. Have students discuss possible meanings. Put GPS definition on board.
Discuss. Then ask students: How will we know when we improve our productivity? Key ideas they will be able to discern
include 1) We make more using same resources. or 2) We make the same amount using less resources. Why is this
important? SCARCITY!!!
4.Tell students that today's activity will have us focusing on ways to become more productive. This lesson will use
Economics in Action: Greatest Hits for Teaching Economics Lesson 8.
5.Using paper that is slated to be recycled, have students become a book-making factory. Students are in groups of 3-4.
Allow students one practice round on correctly making a book.
6.Round 1: All students must make their own books, start to finish. Stop and record info on data sheet. Ask students
what they need to change to become more productive. Students ALWAYS say an assembly line.
7.Round 2: Specialization and Division of Labor. Record data.
8.Round 3: Increased Capital Goods (another pen). Record data.
9.Compare results at the end. Why were some groups more productive than others? Could there be other explanations
for increase in productivity?
10.Closing: Socrative Exit Ticket
11. Remind students that the test is coming soon and they need to be working on problem set posted on online classroom.
Day 10: Importance of Productivity
SSEF6 The student will explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education, and training of people.