Introduction to Economics

Introduction to Economics

 Learning Objectives

By the end of the lesson, students will be able to:

• Define economics and explain its importance.
• Distinguish between microeconomics and macroeconomics.
• Understand the concept of scarcity and choice.
• Identify basic economic questions faced by societies.
• Recognize the role of opportunity cost in decision-making.

1. Introduction

• Begin with a question: “Why do people and societies need economics?”
• Collect student responses on the board.
• Provide a definition: Economics is the study of how individuals and societies allocate scarce resources to satisfy unlimited wants.
• Highlight real-life examples: choosing between buying a phone or saving money, governments deciding how to spend on healthcare vs. defense.

2. Core Concepts

Scarcity and Choice

• Explain scarcity: limited resources vs. unlimited wants.
• Activity: Students list examples of scarce resources (time, money, natural resources).

Opportunity Cost

• Define: the value of the next best alternative forgone.
• Example: Choosing to study instead of going out with friends.
• Activity: Students share personal opportunity cost examples.

Microeconomics vs. Macroeconomics

• Microeconomics: study of individual households, firms, markets.
• Macroeconomics: study of the economy as a whole (inflation, unemployment, GDP).
• Activity: Classify scenarios into micro or macro.

Basic Economic Questions (5 minutes)

• What to produce?
• How to produce?
• For whom to produce?
• Activity: Students discuss how these questions apply to a local industry (e.g., agriculture).

Economic Systems (5 minutes)

• Briefly introduce: market economy, command economy, mixed economy.
• Example: Compare the U.S. (market-oriented) vs. Cuba (command-oriented).