ECONOMICS LESSON NOTE
SUBJECT:
Economics
CLASS:
SS1
TERM:
First Term
WEEK:
Week 2
TOPIC:
Basic Economic Problems: Scarcity, Choice and Scale of Preference
PERIOD:
40 Minutes
LESSON OBJECTIVES
At the end of the lesson, students should be able to:
- Explain the meaning of scarcity.
- Define choice in Economics.
- Explain scale of preference.
- State the basic economic problems.
- Explain the relationship between scarcity, choice and scale of preference.
ENTRY BEHAVIOUR
Students are familiar with situations where they have limited money and must choose among different needs.
TEACHING AND LEARNING MATERIALS
- Whiteboard
- Marker/Chalk
- Economics textbook
- Charts showing human wants and scarce resources
- Pictures illustrating economic activities
REFERENCE BOOKS
- Comprehensive Economics for Senior Secondary Schools
- Essential Economics by C.E. Ande
- New System Economics
CONTENT
BASIC ECONOMIC PROBLEMS
Human wants are unlimited while the resources available to satisfy them are limited. This creates economic problems.
The major economic problems include:
- Scarcity
- Choice
- Scale of Preference
- Opportunity Cost
1. SCARCITY
Scarcity refers to the limited supply of resources used to satisfy unlimited human wants.
Resources such as money, land, labour and time are limited compared to human wants.
Scarcity exists because:
- Human wants are unlimited.
- Resources are limited.
- Resources have alternative uses.
Types of Scarcity
1. Absolute Scarcity
This occurs when resources are naturally insufficient.
Example:
Limited fertile land.
2. Relative Scarcity
This occurs when available resources are not enough to satisfy all wants.
Example:
A student having ₦5,000 but needing ₦10,000 worth of items.
Effects of Scarcity
- It leads to choice making.
- It results in competition for resources.
- It leads to prioritization of wants.
- It may cause poverty and unemployment.
2. CHOICE
Choice refers to the selection of one want instead of another because resources are limited.
Individuals, firms and governments make choices daily.
Examples of Choice
- A student choosing between buying food or clothes.
- A government deciding between building roads or hospitals.
Importance of Choice
- Helps to maximize satisfaction.
- Prevents waste of resources.
- Encourages proper planning.
- Assists in decision making.
3. SCALE OF PREFERENCE
Scale of preference is a list of wants arranged in order of importance.
Individuals arrange their wants from the most important to the least important.
Example of a Scale of Preference
A student with ₦10,000 may arrange wants as follows:
- School fees
- Textbooks
- Food
- Clothes
- Wristwatch
Characteristics of Scale of Preference
- Wants are ranked according to priority.
- It differs from person to person.
- It changes with time and income.
- It helps in rational decision making.
RELATIONSHIP BETWEEN SCARCITY, CHOICE AND SCALE OF PREFERENCE
- Scarcity makes resources limited.
- Because resources are limited, individuals must make choices.
- Scale of preference helps individuals to make wise choices.
Therefore:
Scarcity → Choice → Scale of Preference
TEACHER’S ACTIVITIES
- Explains scarcity using practical examples.
- Guides students in preparing a scale of preference.
- Discusses why people make choices.
- Asks students questions relating to daily needs.
STUDENTS’ ACTIVITIES
- Participate in classroom discussion.
- List their personal wants according to importance.
- Explain examples of scarcity in their environment.
- Answer oral questions.
EVALUATION QUESTIONS
- Define scarcity.
- Explain the meaning of choice.
- What is a scale of preference?
- Mention four characteristics of scale of preference.
- Explain the relationship between scarcity and choice.
ASSIGNMENT
-
Explain the following terms:
a. Scarcity
b. Choice
c. Scale of Preference
-
Draw a personal scale of preference containing five wants.
-
State four effects of scarcity.
BOARD SUMMARY
- Human wants are unlimited while resources are limited.
- Scarcity leads to choice.
- Choice involves selecting one want instead of another.
- Scale of preference is the arrangement of wants in order of importance.
- Scarcity, choice and scale of preference are closely related.
CONCLUSION
The teacher summarizes the lesson by revising the key concepts and asking students oral questions to test understanding.
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