SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
OBJECTIVES
By the end of this lesson, the student will be able to:
 Define Economics and tell why we study the subject.
 Define Scarcity and explain how it forces societies to make choices.
 Identify the three questions that all societies must answer.
 Define factors of production, and explain how they help to answer the three basic questions.
 Define market and give some characteristics of markets.
 Describe the types of market structures.
 Describe the function of the Circular Flow Model.
 Describe the function of the Production Possibilities Curve.
 Graph the data from the Production Possibilities Schedule.
CLASSROOM SUPPLIES NEEDED
Depending on what content and which activities are provided, some to all of the items below will be needed.
 Whiteboard and dry erase markers or flipchart paper and markers
 A sheet of graph paper for each student
 A pencil for each student
LESSON RESOURCES
Depending on what content and which activities are provided, some to all of the items below will be needed.
Pre-Work for Students to Read Before Class
 Handout 1 - Economics Made Easy
 Handout 2 - What Are The Concepts of Economics?
 Handout 3 - Principles of Comparative Advantage
Pre-Work for Students to View Before Class

Online Video 1- 60 Second Adventures in Economics (6:41 minutes)
Website http://www.youtube.com/watch?v=2YULdjmg

Online Video 2- What is Economics? (2:54 minutes)
Website http://www.youtube.com/watch?v=2YULdjmg3o0&list=PL9063FD243CA1B2FB
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 1
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
Handout to Provide Students In Class
 Handout 4 - Production Possibilities Schedule-Country Z
Online Videos Students Will Watch In Class
 Online Video 3- The Law of Comparative Advantage (3:50 minutes)
Website: http://www.youtube.com/watch?v=j1QWKoMk6WQ#t=15
 Online Video 4- Production Possibilities Curve Part II (4:31 minutes)
Website: http://www.youtube.com/watch?v=iEpgSkzXuT8
KEY VOCABULARY AND IMPORTANT CONCEPTS
 Economics
 Entrepreneurship
 Competition
 Interdependence
 Scarcity
 Market
 Monopoly
 Production
 Opportunity Costs
 Market Economy
 Oligopoly
 Factors of Production
 Profit Motive
 Productivity
 Natural Resources
 Incentive
 Specialization
 Human Resources
 Efficient
 Circular Flow Model
 Capital Resources
 Market Structure
 Comparative
Possibilities Curve
 Trade-offs
 Production
Possibilities
Schedule
Advantage
STUDENT PRE-WORK FOR THIS LESSON
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
Directions
1. Students are to read the three articles.
2. Students are to watch the online videos.
Resources To Provide Students
 Handout 1 - Economics Made Easy
 Handout 2 - What Are The Concepts of Economics?
 Handout 3 - Principles of Comparative Advantage
Online Video Resources
 60 Second Adventures in Economics (6:41 minutes)
Website: http://www.youtube.com/watch?v=LCRNI04tnN8
 What is Economics? (2:54 minutes)
Website: http://www.youtube.com/watch?v=2YULdjmg3o0&list=PL9063FD243CA1B2FB
Class Preparation
During class discussion, students will be asked to share information covered in the three articles and the
online videos.
ANTICIPATORY SET FOR THE LESSON (5 MINUTES)
MODE
Teacher Question
Class Discussion
Teacher Provides
Instructions
TOPIC
Teacher asks students the following question:
Why is it important to lay the foundation when teaching something new?
Students’ responses should indicate their understanding of the importance of
learning basic concepts, and how those concepts help students formulate
more complex thoughts and ideas.
Word Wall
 Teacher tells students that important economics concepts are posted
around the room.
 Teacher instructs students to learn the concepts, and to be able to give
examples of the concepts.
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
 Teacher tells students that they will use the concepts throughout their
study of economics.
NOTE*** to read more about Word Walls http://en.wikipedia.org/wiki/Word_wall
LESSON CONTENT AND ACTIVITIES: ECONOMICS BEGINS WITH SCARCITY (25 MINUTES)
MODE
Teacher Question
Class Discussion
TOPIC
What is Economics?
Teacher asks students the following questions:
What is Economics? Why is it important to study this subject?
Teacher Lecture
Class Discussion
Teacher Lecture
Class Discussion
Students’ responses should indicate that they understand that many of the
choices they make are based on economics. The decision to buy one product
over another illustrates the concept of trade-offs. When producers establish
businesses in an area, they do so based on the perceived demand for that
business. A business that offers promotions is illustrating the concept of
incentives.
The Study of Economics
Teacher defines scarcity, and tells students that scarcity leads to opportunity
costs and trade-offs. Teacher asks students to give examples of scarcity in
their lives.
Scarcity: Three Questions.
Teacher and students discuss the three questions that all societies must
answer. Societies ask:
 What to produce?
 How to produce?
 For whom to produce?
Teacher Lecture
Teacher may discuss the fact that market surveys are done on an area to
determine the kinds of businesses to open in that area.
Scarcity:
Teacher explains that economic concepts are often illustrated by pictures and
cartoons. Teacher tells students that the graphic illustrates scarcity.
Teacher instructs students to develop an illustration which shows how
scarcity affects them.
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 4
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
LESSON CONTENT AND ACTIVITIES: ECONOMICS BEGINS WITH SCARCITY (25 MINUTES)
MODE
TOPIC
Student Activity
Students will use the whiteboard and dry erase markers to display their
illustrations.
Students will share their illustrations with the class.
Individual Presentations
LESSON CONTENT AND ACTIVITIES: FACTORS OF PRODUCTION (10 MINUTES)
MODE
Teacher Lecture
Class Discussion
Teacher Lecture
Class Discussion
TOPIC
Factors of Production: Resources Needed
Teacher identifies and describes the four factors of production.
Those factors are:
 Natural Resources
 Human Resources
 Capital Resources
 Entrepreneurship
Factors of Production-Example
Teacher provides examples of the four factors of production for a specific
business.
 Business- grocery store.
 Natural Resources- the fruits, the vegetables, and the plants.
 Human Resources- all of the persons who work in the store.

Capital Resources-the building, the lights, the freezers, the shelves, the
cash registers, and the ovens.
 Entrepreneurship-the owner who provides the capital to invest in the
three factors of production.
Teacher Question
Teacher asks students to provide an example of a business and the factors of
production for that business.
Students Brainstorm
Students Provide Answers
Students give specific examples of the four factors of production for a specific
business.
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 5
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 6
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
LESSON CONTENT AND ACTIVITIES: MARKET AND THE MARKET ECONOMY (45 MINUTES)
MODE
Teacher Lecture
Class Discussion
TOPIC
Market
Teacher gives definition of market, and provides some characteristics of
markets.
Teacher asks students for specific examples of market.
Students’ responses should indicate that they understand that the market is a
physical place, or it can be an online website like Amazon.
Incentives -Teacher asks students to give specific examples of incentives.
Teacher Lecture
Class Discussion
Students provide a variety of answers including: promotions, specials that are
designed to get them to purchase the goods or services, and buy one get one
free.
Market Structure
Teacher describes the different types of market structures.
Teacher asks students for examples of each type of market structure.
 Competition-many nail shops, many liquor stores, and many auto stores.
 Monopoly-only one drug store, only one supermarket, one gas station.
 Oligopoly-a few producers -hamburger places, pizza places.
Teacher Lecture
Class Discussion
Benefits of Competition
Teacher and students discuss the benefits of having competition in the market.
Teacher asks students what they can do to ensure that a business is
competitive with other businesses in area.
Teacher Lecture
Class Discussion
Customers can take other store promotions into a business and ask if they will
match promotion. Customers can withdraw their support for a business where
prices are not competitive.
Productivity
Teacher defines productivity, and identifies steps that businesses take to
increase productivity.
Teacher asks students to provide examples of productivity in a business.
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 7
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
LESSON CONTENT AND ACTIVITIES: MARKET AND THE MARKET ECONOMY (45 MINUTES)
MODE
Teacher Lecture
Class Discussion
TOPIC
In factories, workers are expected to produce more goods within a certain time
period, after they have repeated the tasks several times.
Circular Flow Model
Teacher tells students that the Circular Flow Model represents the exchange of
goods, services, and money in the marketplace. It is a dynamic cycle.
Teacher asks students to identify the part of the cycle that is missing from the
model.
Teacher Lecture
Class Discussion
Students Review Handout
The arrow that indicates the flow of money in the market place is missing from
the model. Teacher tells students that money moves counter-clockwise on the
Circular Flow Model.
Comparative Advantage
Teacher defines comparative advantage, and explains how comparative
advantage leads to interdependence.
Principles of Comparative Advantage
Teacher instructs students to review Handout 3- Principles of Comparative
Advantage. Students read the handout for pre-work.
Teacher instructs students to answer the following questions from the article:
Students Activity
The Questions are located on the Power-Point Slide
Students’ answers should include the following information:
1. Who is producing what in the article?
Country A and Country B are both producing shoes and baseballs.
2. Who is more efficient at producing each of the goods mentioned?
Country A is more efficient at producing shoes.
Country B is more efficient at producing baseballs.
3. Who has the comparative advantage in producing each of the goods
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
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SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
LESSON CONTENT AND ACTIVITIES: MARKET AND THE MARKET ECONOMY (45 MINUTES)
MODE
TOPIC
mentioned?
Country A has a comparative advantage in producing shoes.
Country B has a comparative advantage in producing baseballs.
4. What are the implications of this law for producers?
Teacher Shows Online
Video
When faced with a choice among competing goods, producers should
manufacture those goods that have a lower opportunity cost, and trade
for the other goods. They should not try and produce all of the goods
and services.
The Law of Comparative Advantage: Video
Teacher shows Online Video 3 - The Law of Comparative Advantage (3:50
minutes).
Teacher asks students to answer the following questions:
The questions are located on the Power-Point Slide.
Student Activity
Students’ answers should include the following information:
1. What information does the video provide that the article does not?
The article does not give the quantity for baseballs. It only provides the
quantity for shoes (1 pair). The video gives specific quantities of both
products. The video tells how much product each producer needs to
produce.
The video also states that the producer focuses on his/her strengths and
trades for things that he/she needs.
2. Teacher asks students “Which resource helps you to better understand the
concept comparative advantage?” Why?
Teacher Lecture
Class Discussion
Teacher Provides
Students’ answers will vary.
Production Possibilities Curve
Teacher will explain the function of the Production Possibilities Curve.
Production Possibilities Curve Part II-Video
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 9
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
LESSON CONTENT AND ACTIVITIES: MARKET AND THE MARKET ECONOMY (45 MINUTES)
MODE
Instructions
Teacher Shows Video
TOPIC
Teacher instructs students to answer the following questions based on
information presented in Online Video 4- Production Possibilities Curve Part II
(4:31 minutes).
Questions are located on the Power-Point Slide.
Student Activity
1. What economic concepts are discussed?
a. Scarcity -There is a trade-off, or opportunity cost to everything you do
or consume.
b. Law of Increasing Opportunity Costs- The more you produce of
anything, the greater the opportunity costs. The more you have to give
up of something else.
c. An efficient economy produces on the curve instead of inside of the
curve.
d. Economic growth pushes the curve outward.
2. What factors can cause an inward-shift of a country's production
possibilities curve? When in history did that occur?
An inward shift means that the country is under producing.
Unemployment is very high. (e.g., the Great Depression of the 1930s).
3. What does it mean when the country’s economy operates along the
production possibilities curve? When in history did that occur?
If a country operates along the curve, then they are producing at full
capacity. That country has near full employment. American industries were
producing at full capacity during World War II.
4. What factors can cause an outward shift in the curve?
Student Activity
An Increase in the factors of production which leads to economic growth.
Economic growth is the goal of all economies.
Graphing Production Possibilities-Country Z
Teacher will provide students with a copy of Handout 4 -Production Possibilities
Schedule-Country Z. Use the data from Handout 4- Production Possibilities
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 10
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
LESSON CONTENT AND ACTIVITIES: MARKET AND THE MARKET ECONOMY (45 MINUTES)
MODE
TOPIC
Schedule, to plot the quantity of goods produced.
Students answer the following questions. Students’ answers should include the
Students Answer Questions following information:
1. If Country Z only produces tanks, what is the maximum amount that it
can produce?
1200 tanks.
2. If Country Z only produces corn, what is the maximum amount that it
can produce?
120,000 bushels of corn.
3. If Country Z decided to produce 1000 tanks, what is the opportunity
cost of producing corn?
100,000 bushels of corn.
4. If Country Z decided to produce 40,000 bushels of corn, what is the
opportunity cost of producing tanks?
400 tanks.
5. What happens to the curve if there is a drought in the country and a
strike at the factory?
The curve shifts to the left. Productivity declines.
Teacher Displays Graph
6. What happens to the curve if Country Z modernizes the factory and
hires more workers?
The curve shifts outward. Production increases.
Economic growth is taking place.
Production Possibilities Curve Country-Z
Teacher Asks Questions
Teacher points to an“ x “on the graph and asks students the following
questions:
Student’s answers should include the following information:
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 11
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
LESSON CONTENT AND ACTIVITIES: MARKET AND THE MARKET ECONOMY (45 MINUTES)
MODE
TOPIC
1. “What does this “x” indicate as far as productivity is concerned?”
The area inside of the curve indicates that these quantities can be
produced.
2. Teacher points to the other “x” and asks “What does this “x” mean?
The area on the outside of the curve indicates the quantity of tanks and
corn that cannot be produced.
3. Teacher asks students, “Why can the factory not produce those quantities?
The producers do not have the factors of production that are needed to
produce this quantity of product.
LESSON ASSESSMENT AND STUDENT LEARNING EVALUATION (10 MINUTES)
Mode
Class Discussion
Class Discussion
Topic
Students will use at least five of the concepts that we have studied to explain
how scarcity affects them.
Scarcity occurs when individuals have unlimited wants and needs, but their
resources are limited. Individuals must make choices, and the choices have
trade-offs, or several alternatives that could have been chosen. When making
a choice, the individual also gives up the opportunity to choose the next best
alternative. This action is called opportunity cost. Because their resources are
limited, individuals look for competitive (many buyers and sellers) markets, or
places where they can exchange goods, services, and money. Competition
drives down the price of goods and services. Individuals also look for
incentives, such as free checking, and buy one get one free, from some of the
businesses.
Students will use at least five of the concepts that we have studied to explain
how scarcity affects a business, and the decisions that business owners must
make when deciding what to produce.
Businesses also have to make decisions on how to use their scarce resources
to answer the three basic questions: What to produce?, How to produce?, and
For whom to produce? Businesses must consider their factors of production
when deciding what to produce, and in what quantity. The natural resources,
or raw materials, that they have, the human resources, or skills of the
employees, and the capital resources, or money, building, and equipment that
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
Page 12
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
TOPIC
LESSON 1
Economics
Fundamental Economic Concepts
Scarcity Forces Society to Make Choices
they have, determine what they can produce, and in what quantity. Because
businesses exist to make a profit, (income minus expenses), they must be
efficient, (little waste) when manufacturing products, or providing services.
Economics > Fundamental Economic Concepts > Scarcity Forces Society to Make Choices
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