Objectives (5 - 7 minutes)

1. Students will be able to define 'Opportunity Cost' in economics, understanding that it refers to the value of the next best alternative that is foregone when a choice is made.
2. Students will learn to identify and analyze real-life examples of opportunity costs, applying their understanding to situations they encounter in their daily lives.
3. Students will develop critical thinking skills by evaluating the potential benefits and drawbacks of different choices, considering the opportunity costs involved.

Secondary Objectives:

1. Encourage students to participate actively in class discussions and share their insights on the concept of opportunity cost.
2. Foster a deeper appreciation for the economic decision-making process and the role of opportunity cost in shaping such decisions.
3. Promote the use of technology and independent learning as part of the flipped classroom methodology.

Introduction (10 - 12 minutes)

1. The teacher begins the lesson by reminding students of the basic economic concept of scarcity, explaining that because resources are limited, individuals, businesses, and societies must make choices about how to best use these resources.

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

   a. "Imagine you have $10 and you're trying to decide whether to buy a book or a movie ticket. What would you choose and why?"

   b. "You have an hour of free time and you could spend it either studying for a test or playing your favorite video game. What would you choose and why?"

3. The teacher emphasizes that in both scenarios, the student must consider what they are giving up (the opportunity cost) when they make their decision.

4. To contextualize the importance of the subject, the teacher can provide real-world examples. For instance, they could discuss how a company might choose to invest in research and development rather than in advertising, or how a government might decide to spend money on healthcare instead of on infrastructure.

5. The teacher then introduces the concept of 'Opportunity Cost' with a couple of intriguing stories or facts.

   a. Story: The teacher shares the story of a famous economist, Fredrick W. Smith, who started the delivery company FedEx. Smith once gambled the company's last remaining funds in Las Vegas to pay a $24,000 fuel bill. He won $27,000, which was enough to keep the company going for a few more days. This story illustrates the high opportunity cost that Smith took in making his decision.

   b. Fact: The teacher shares the fact that when people decide to go to college, they are not only giving up the money they could have earned if they started working immediately after high school, but they are also giving up four years of their time. This is a real-life example of opportunity cost that many students can relate to.

6. The teacher concludes the introduction by stating that understanding and being aware of opportunity cost can help individuals and businesses make more informed decisions, ultimately leading to better economic outcomes.

Development

Pre-Class Activities (12 - 15 minutes)

1. The teacher assigns a video for students to watch at home on the concept of Opportunity Cost. The video should be engaging, visually stimulating and present the information in an easy-to-understand format. A suggestion would be the Crash Course Economics series that has a comprehensive video on the subject.

2. After watching the video, students will answer a short online quiz prepared by the teacher. This quiz will test their basic understanding of the concept, using multiple-choice questions and a few simple problem-solving scenarios.

3. The teacher also assigns a reading task on the same topic. The reading material should provide more depth and a wider range of examples of opportunity costs. After reading the material, students will be asked to write down at least three real-world examples of opportunity cost they found most interesting or relevant. These examples will be shared and discussed in class.

In-Class Activities (18 - 20 minutes)

Activity 1: Opportunity Cost Skits

1. The teacher divides the class into groups of five. Each group is then given a scenario card. These scenarios can be about buying a car, choosing a college major, starting a business, or any other situation where choices with associated costs are involved.

2. The groups will be given 10 minutes to prepare a short skit that demonstrates their chosen scenario and the opportunity cost involved. The skit should clearly show the trade-offs and decisions that the characters in the scenario will have to make.

3. After the preparation time, the groups will perform their skits one by one. While watching, each student will take notes on what they think the opportunity cost in the skit is. At the end of each skit, a group representative will explain the opportunity cost they portrayed in their skit.

4. The class, including the performing group, will discuss each skit, analyzing the choices made and the opportunity costs involved.

Activity 2: Decision-Making Game

1. The teacher introduces a decision-making game. The class is divided into new groups, and each group is given a game board. The game board will be a simplified economic landscape, where different resources and choices are presented.

2. Each group will be tasked with making decisions about how to use these resources and what choices to make. For example, they could choose between investing in new technology, expanding their business, or increasing employee salaries.

3. The teacher will provide the groups with a set of 'opportunity cards'. These cards represent different opportunities and their respective costs. For instance, one card might say "The opportunity to invest in new technology - Cost: $5000".

4. Each group will take turns drawing an 'opportunity card' and deciding whether to take that opportunity or not. They will also need to explain the opportunity cost of their decision. The other groups will then discuss and debate whether they agree with the decision and its opportunity cost.

5. The objective of the game is for the groups to make the most beneficial decisions for their 'business' while considering the opportunity cost of each decision. The winning group will be the one that makes the most beneficial decisions in terms of their 'business's' success.

6. After the game, the teacher will lead a class discussion reflecting on the difficulty of making choices when opportunity costs are involved and the importance of considering these costs when making decisions.

These activities will provide students with hands-on, engaging experiences that help them understand and apply the concept of opportunity cost. By participating in the activities, students will gain a deeper understanding of the topic and will be better prepared to discuss and analyze real-world examples of opportunity cost.

Feedback (10 - 12 minutes)

1. The teacher initiates a group discussion where each group is given up to 3 minutes to present their conclusions from the activities. The presentation should include a summary of their skit, the opportunity cost identified, and the decisions made in the game, along with the associated opportunity costs.

2. The teacher will facilitate the discussion by asking probing questions to ensure that the concept of opportunity cost is well understood. The teacher might ask:

   • "Why did you choose this specific decision in your skit/game?"
   • "How did you consider the opportunity cost in your decision-making process?"
   • "Did you find it difficult to make a decision knowing that you had to give up something else? Why or why not?"
   • "What did you learn about opportunity cost from your skit/game that you didn't know before?"

3. After each group has presented, the teacher encourages the other students to ask questions or provide feedback on the presented work. This will promote a peer-to-peer learning environment and allow students to gain insights from each other's perspectives.

4. The teacher then transitions to individual reflections.

   a. The teacher asks students to take a moment to think about the most important concept they learned during the lesson. They are asked to write this concept down on an index card or a virtual platform.

   b. Once the students have written down their thoughts, the teacher collects the index cards or reviews the responses on the virtual platform. This will provide the teacher with a quick overview of the students' understanding of the topic and any areas that may need to be revisited in future lessons.

   c. The teacher also asks the students to note down any questions or areas of confusion they still have about the concept of opportunity cost. This will help guide the teacher's planning for future lessons and ensure that all students' needs are addressed.

5. To conclude the feedback session, the teacher summarizes the key points of the lesson, emphasizing the definition of opportunity cost, its relevance in decision-making, and the various real-world examples explored during the lesson. The teacher also acknowledges the students' active participation and effort in understanding the concept.

This feedback stage is crucial as it allows the teacher to assess the students' understanding of the topic and their ability to apply the concept of opportunity cost to different situations. The individual reflections provide a space for students to consolidate their learning and identify any areas of confusion, while the group discussions foster peer-to-peer learning and a deeper understanding of the concept. The teacher's guidance in this stage ensures that the students' reflections and discussions are focused on the learning objectives of the lesson.

Conclusion (5 - 7 minutes)

1. The teacher begins the conclusion by summarizing the main points of the lesson. This includes the definition of 'Opportunity Cost' as the value of the next best alternative forgone when a choice is made, and the understanding that all decisions involve trade-offs and the potential loss of the benefits from the next best alternative. The teacher also recaps the real-world examples discussed during the class, reinforcing how the concept of opportunity cost is applicable in various situations.

2. The teacher then explains how the lesson connected theory, practice, and applications. The theoretical aspect was covered through the definition and explanation of 'Opportunity Cost' and its relationship with the economic concept of scarcity. The practical aspect was addressed through the pre-class video, reading, and in-class activities, where students were able to apply the concept in a hands-on manner. The applications were illustrated through the real-world examples, demonstrating how opportunity cost plays a role in everyday decision-making, from personal choices to business and government decisions.

3. The teacher suggests additional materials for students who want to explore the topic further. This may include more advanced readings on opportunity cost and its role in economic decision-making, as well as articles or videos on how economists use the concept to analyze and predict economic behavior. The teacher can also recommend interactive online games or simulations that allow students to further practice making decisions based on opportunity cost.

4. Lastly, the teacher explains the importance of the topic for everyday life. The understanding of opportunity cost is not only crucial in economics, but it also has implications in many aspects of life. From personal finance decisions to career choices, understanding the trade-offs involved and the potential costs of various alternatives can help individuals make more informed decisions. The teacher emphasizes that the concept of opportunity cost is a valuable tool for decision-making that can lead to better outcomes, both in personal life and in broader economic contexts.

5. The teacher concludes the lesson by thanking the students for their active participation and encouraging them to continue exploring the fascinating world of economics. This final note serves to motivate the students and instill a sense of curiosity and interest in the subject.