Objectives (5 - 7 minutes)

1. To introduce students to the basic concepts of economics, such as supply and demand, scarcity, and opportunity cost.
2. To develop the students' understanding of how these economic concepts affect their everyday lives and decision making.
3. To engage the students in hands-on activities and discussions that promote active learning and critical thinking about economic principles.

Secondary Objectives:

• Encourage collaboration and communication among students during the activities and discussions.
• Foster an appreciation for the relevance and importance of economics in society.
• Lay a foundation for further exploration of economic concepts in higher grades or in real-world applications.

Introduction (10 - 12 minutes)

1. The teacher starts the lesson by reminding students of the previous lessons related to decision making, resource allocation, and the concept of trade. This review will help to refresh the students' memory and set the stage for the new concepts they are about to learn. (2 - 3 minutes)

2. The teacher then presents two problem situations to the class:

   • The first scenario involves a limited budget for a school trip. The students are asked to consider what factors they would need to think about when making a decision about how to spend the money.
   • The second scenario involves a popular new video game that has limited copies available. The students are asked to think about how they would decide whether to buy the game or not. These scenarios will serve as a practical introduction to the concepts of scarcity, opportunity cost, and demand. (3 - 4 minutes)

3. The teacher then explains the importance of economics in everyday life, using relatable examples such as:

   • The cost of a favorite snack increasing due to high demand and limited supply.
   • The decision to save money for a future purchase, understanding that buying something now means giving up the opportunity to buy something else in the future. These examples will help students to understand how economic concepts directly impact their lives. (2 - 3 minutes)

4. To grab the students' attention, the teacher shares two interesting facts or stories related to economics. These could include:

   • The concept of 'The Invisible Hand' introduced by Adam Smith, which explains how self-interested individuals can unknowingly benefit society as a whole.
   • The story of the Beanie Baby craze in the 1990s, where the limited supply and high demand for these toys led to inflated prices and then a sudden crash in the market. These stories will pique the students' curiosity and make them more interested in learning about economics. (3 - 4 minutes)

Development (20 - 25 minutes)

Activity 1: "The Great Snack Trade" (10 - 12 minutes)

1. The class is divided into groups of five students each. Each group is given a mix of different snacks with differing quantities for each snack. The snacks should be popular and relatable to the students, such as cookies, chips, fruit, etc.

2. Each group is told that they are in a situation where they are hungry and have only one kind of snack, but they want a variety. They are also informed that each snack has a different value (based on its popularity within the group).

3. The task for the groups is to negotiate and trade snacks within their group in order to end up with a mix of snacks that they prefer. They can use any method of negotiation they wish, but they must respect the principle of voluntary exchange (no one is forced to give up their snacks if they don't want to).

4. After the trading is complete, each group presents their final mix of snacks and explains their trading strategy. The teacher then guides a discussion about how the concepts of supply, demand, scarcity, and value played out in the activity.

5. The teacher then explains how this activity relates to the real-world economic concept of trade, where countries exchange goods and services they have in abundance for those they lack.

Activity 2: "Opportunity Knocks" (10 - 12 minutes)

1. The class remains in their groups. The teacher presents a scenario to the students: Each group has been given $10,000 to invest in a fictitious product of their choice. They must decide as a group which product to invest in and justify their decision based on potential demand and profitability.

2. The teacher provides each group with a list of possible products, each with a description and a price. The products should vary in price, demand, and potential profitability.

3. The groups research their chosen products, considering factors such as current market demand, potential future demand, production costs, and potential profits. They also need to consider the concept of opportunity cost - by choosing one product, they are giving up the opportunity to invest in another.

4. After the research, each group presents their product choice and the reasons behind it. The teacher leads a discussion on how the concepts of demand, supply, scarcity, and opportunity cost influenced their decision.

5. The teacher then explains how this exercise relates to real-world economic decision making, where businesses and individuals must consider a range of factors before making an investment or a purchase.

Both activities are designed to be fun, engaging, and relatable, but also to reinforce the key economic concepts being taught. They encourage teamwork, research skills, critical thinking, and communication, all of which are important skills in the study of economics.

Feedback (8 - 10 minutes)

1. The teacher begins the feedback session by asking each group to share their conclusions and solutions from the activities. This sharing session should not exceed 3 minutes per group to ensure it does not become overly time-consuming. The teacher encourages other students to ask clarifying questions or provide their own perspectives on the groups' solutions. This process helps to consolidate the learning from the activities and encourages students to consider different viewpoints. (3 - 4 minutes)

2. The teacher then facilitates a class-wide discussion about the connections between the activities and the theoretical concepts of economics. The teacher can guide this discussion by asking questions such as:

   • How did the concept of supply and demand play out in the "Great Snack Trade" activity?
   • How did the concept of opportunity cost influence the decisions made in the "Opportunity Knocks" activity?
   • Can you think of any real-world examples where these economic concepts are at play? This discussion should help students to see the practical applications of the economic concepts they have learned. (2 - 3 minutes)

3. The teacher then asks the students to take a moment to reflect on the lesson and write down their responses to the following questions:

   • What was the most important concept you learned today?
   • Which questions do you still have about these economic concepts?
   • How do you see these economic concepts influencing your everyday life? The teacher should remind the students that the reflection is a personal activity and they do not need to share their responses with the class if they do not wish to. This exercise encourages students to think deeply about what they have learned and to identify any areas of confusion that need further clarification. (2 - 3 minutes)

4. To conclude the lesson, the teacher collects the students' reflections and reminds them that economics is not just a theoretical subject, but one that has a direct impact on their everyday lives. The teacher also provides a brief overview of the next lesson, which will build on these basic economic concepts. (1 minute)

This feedback session is crucial for assessing the students' understanding of the lesson's content, reinforcing the key concepts, and identifying any areas that may need further clarification in future lessons. It also encourages students to reflect on their learning, which is an important part of the learning process.

Conclusion (5 - 7 minutes)

1. The teacher begins the conclusion by summarizing the main points of the lesson. They reiterate the basic concepts of economics, such as supply and demand, scarcity, and opportunity cost. They also recap the key lessons from the activities, emphasizing how the students' experiences in the "Great Snack Trade" and "Opportunity Knocks" exercises reflect these economic principles. (1 - 2 minutes)

2. The teacher then explains how the lesson connected theory with practice, and everyday life. They highlight how the activities provided hands-on, practical experiences that helped to illustrate the theoretical concepts. The teacher also reemphasizes the importance of understanding economics in everyday life, using concrete examples from the students' responses during the lesson. (1 - 2 minutes)

3. Next, the teacher suggests additional resources for students who want to learn more about the topic. These could include:

   • Educational videos or documentaries on basic economic concepts, such as those available on platforms like Khan Academy or TED-Ed.
   • Books or articles on economics for young readers, such as "The Cartoon Introduction to Economics" by Grady Klein and Yoram Bauman, or "The Lemonade War" by Jacqueline Davies (for a fun, fictional introduction to the concept of supply and demand).
   • Interactive online games or simulations that allow students to explore economic concepts in a fun and engaging way. The teacher stresses that these resources are not required, but are available for students who are interested in exploring the topic further. (1 minute)

4. Finally, the teacher wraps up the lesson by reiterating the importance of economics in everyday life. They remind the students that understanding these basic economic concepts can help them make better decisions, both as individuals and as future participants in the economy. The teacher also encourages the students to keep an eye out for real-world examples of these economic concepts in action, and to think about how they might apply these concepts in their own lives. (1 - 2 minutes)

This conclusion stage is important for reinforcing the key concepts of the lesson, connecting theory with practice, and inspiring further exploration of the topic. It also serves to wrap up the lesson in a clear and concise manner, leaving the students with a solid understanding of the basic economic concepts and their relevance to everyday life.