Civics, Grade 7 Unit 3 Economics Basics Lesson 2 Economic Decision Making

Answer 1

Grade 7 Civics: Unit 3 - Economics Basics

Lesson 2: Economic Decision Making

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Objectives:

1. Understand the concept of economic decision-making.
2. Identify factors that influence economic decisions.
3. Explore the impact of scarcity on choices.
4. Analyze the concept of opportunity cost.

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Key Concepts:

1. Economic Decision Making:

Economic decision-making involves choosing among alternatives based on preferences, needs, and limited resources. Individuals, businesses, and governments all engage in this process to determine the best use of their resources.

2. Scarcity:

Scarcity refers to the gap between limited resources and theoretically limitless wants. Because resources (like time, money, and materials) are limited, people must make choices about how to allocate them.

• Example: If you have $10 and you want to buy either a book or a movie ticket, you cannot buy both due to limited funds.

3. Factors Influencing Decisions:

Several factors influence economic decisions:

• Personal Preferences: Individual likes and dislikes.
• Budget Constraints: Amount of money available for spending.
• Time: The urgency of a decision and the time available to make it.
• Social Influences: Friends, family, and cultural norms.

4. Opportunity Cost:

Opportunity cost is the value of the next best alternative that you give up when making a choice. It helps individuals and organizations evaluate the relative worth of their decisions.

• Example: If you choose to spend your $10 on a book, the opportunity cost is the enjoyment and value you would have received from the movie ticket you didn’t buy.

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Activities:

1. Class Discussion:

   • Discuss examples of scarcity in daily life.
   • Ask students to share situations where they had to make a choice due to limited resources.

2. Scenario Analysis:

   • Present students with various scenarios where they must make economic decisions:
     • Scenario 1: Choosing between a new video game or saving money for a concert.
     • Scenario 2: Deciding whether to spend time after school on a part-time job or attending a sports practice.
   • Have students identify their opportunity costs for each scenario.

3. Group Work:

   • Divide students into small groups and give them a set of resources (time, money, goods). Ask them to create a budget for a hypothetical event (like a party) while considering preferences and opportunity costs.

4. Reflection:

   • Have students write a reflective paragraph on a recent economic decision they made, including the factors that influenced their choice and the opportunity cost involved.

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Conclusion:

Understanding economic decision-making helps students navigate choices in their daily lives and better comprehend the intricate dynamics of financial literacy. By recognizing scarcity, evaluating opportunities, and understanding the costs associated with their decisions, they can become more informed consumers and responsible citizens.

Homework:

• Hand out a worksheet where students will list three economic decisions they made in the past week and identify their opportunity costs for each.

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Assessment:

• Evaluate students based on participation in discussions, the accuracy of their economic reasoning in scenario analysis, and their reflections on personal decision-making processes.

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This lesson provides a foundational understanding of how economic principles influence personal and broader societal decisions.