Lesson Plan Grade 10 Economics
GRADE |10 |SUBJECT |Economics |WEEK |4 |TOPIC |Production Possibility Curve – Explanation | | | | | | | |LESSON SUMMARY FOR: DATE STARTED: | |DATE COMPLETED: | | |LESSON OBJECTIVES |By the end of the lesson the learners should be able to: | | |Explain the production possibility curve in relation to scarcity, choice and opportunity cost | | |Explain productive efficiency and allocative efficiency in relation to the production possibility curve | | |Explain the attainable output and unattainable output with the aid of the diagram of the production possibility curve | | | | | | | | | |TEACHER ACTIVITIES |LEARNER ACTIVITIES |TIMING |RESOURCES NEEDED | | Relevant Teaching Methods for this Lesson: |Cooperative grouping in pairs. See the |Introduction or | | |The teacher recaps the previous topic by summarising the assumptions of production possibility curve and its |attached lesson module 5 for week 4 |recapping of |Grade 10 Economics Textbook | |illustration.
|. previous lesson | | | | |5 minutes | | |After recapping the previous topic then the new topic is introduced where its aimed at interpreting the | | | | |production possibility frontier drawn in the previous lecture whilst applying the underlying economic principles | |Interactive | | |of scarcity, choices and opportunity cost. Comparisons are made on all points that are on the boundary of the | |teacher to learner| | |production possibility curve to those one inside and outside of it. |– 35 minutes | | | | | | | |Lastly cooperative grouping is used when assessing learners’ understanding through the questions provided in the | | | | |attached lesson module 5 where they consider two questions in pairs | | | | | | | | | |Prepare a lesson and consider the following: | |Leaner’ in class | | |Introduction | |work 15 minutes | | |Assess the assumed knowledge by asking the learners about scarcity and economic resources, choices and | | | | |opportunity cost that follow together with the illustration of production possibility curve. This is in the | | | | |attached lesson module 4 for week 4. | |Lesson Conclusion | | | | |5 minutes | | |Main Body (Lesson presentation) | | | |The teacher explains and differentiate productive efficiency from allocative efficiency and thereafter pareto | | | | |optimality is defined, Interpretations of efficiency are linked to the diagram of production possibility curve | | | | |from the previous lesson.
Finally, the production possibility curve is explained using scarcity, choice and | | | | |opportunity cost. illustrates as is given in the lesson module 5 for Week 4 attached. For more information please| | | | |refer to the attached lesson module 5 for week 4. | | | |Teacher’s Reference: www. tutor2u.
net/economics , | | | | | | | | | |Conclusion | | | | |Refer to chalkboard summary, transparency etc. and summarise the lesson.
It may be necessary to restate the | | | | |important concepts | | | | |The learner activity which they have to do in pairs is the informal assessment you should give the learners to | | | | |check if they have understood the underlying concepts. Please note that this learner activity is attached in | | | | |module at the bottom. The answers are also provided in a separate attachment.
| | | | | | | | Name of Teacher____________________________HOD:_________________________________ Sign:_____________________________________Sign:__________________________________ Date:______________________________________Date: _________________________________Economics G10 CAPS Lesson Module 5 for Week 4 of Term 2 Production Possibility Frontier and Efficiency Each point on the production possibility curve represents some maximum output of the two products. These points on the production possibility curve represent full employment of resources.
Full employment implies two kinds of efficiency, that is, productive efficiency and allocative efficiency. Therefore it follows that all points on the production possibility curve are both allocatively efficient and productively efficient and these are points like A, B, C, D and E. ? Productive efficiency Productive efficiency is the production of any two goods and services in the least costly way. This means that productive efficiency is concerned with production at the lowest possible cost.
The best way to produce any goods and services at the lowest cost so as to achieve productive efficiency is by fully utilizing all the available resources in the production process.
Suppose a farmer who has 200 hectares of land, 50 farm workers and 10 tractors. The 200 hectares, 50 farm workers and 10 tractors represent the full resources available to the farmer. Now, if the farmer only farms on only 100 hectares but went on to use 50 farm workers and 10 tractors, it represents a situation where he has not fully utilized or fully employed all his resources. This situation or scenario does not represent full employment of all the farmer’s resources because he only used half of his land resources.
Therefore such a scenario shows that the farmer is not producing at the lowest possible cost and thus he is not productively efficient by not fully utilizing all his resources.
From our production possibility frontier, any point lying inside the production possibility curve represents under-utilisation or under-employment of resources. Therefore a point like” F” from the production possibility curve we considered earlier represent under-employment of resources and thus, it is not productively efficient. We call such points “attainable” because they are achievable or can be reached but do not represent full utilization of resources. But, should the farmer plough or farm the whole 200 hectares of his land, use all his 50 farm workers and all his 10 tractors, it represents full employment or full utilization of the farmer’s resources.
And, as such, the farmer is producing his output at the lowest possible cost and therefore he is productively efficient. ? Allocative efficiency Allocative efficiency is also called pareto efficiency and what is pareto efficient is also called pareto optimal. What is Pareto Optimality: Pareto optimality is a situation where you cannot change the present allocation of resources to make someone better off without making someone else worse off. All points on the production possibility curve like A, B, C, D, and E are allocatively efficient and therefore are pareto efficient or pareto optimal, as well. But a point like “F” represents a situation of allocative inefficiency or pareto inefficiency.
? Unattainable Points
Any point lying to the right of the production possibility curve like point “G” from our production possibility curve illustrated above represent two output combinations that are not attainable with the current level of resources. Remember the points on the boundary of the production possibility frontier represent the maximum possible output combinations of the two goods that can be produced by all the available resources and therefore while producing at point such as “G” is desirable, is however not possible to do so because the current stock of resources cannot support that high output level and hence unattainable. 1. Scarcity, Choice, Opportunity Cost and the Production Possibility Curve Scarcity as defined is limited supply of resources.
The fact that output levels A, B, C, D, and E are the maximum possible outputs while point “G” is unattainable shows that our resources are limited and can only produce a maximum of output combinations from A to E while “G” is unattainable.
Choice is represented by the need to choose between any of the output combinations from A to E. Opportunity Cost comes from choosing one output combination from another. For example, in moving from alternative A to alternative B, in the diagram above, we find that the opportunity cost of one additional unit of agricultural output is one less unit of industrial output. Opportunity cost is also illustrated by the production possibility curve through its negative slope where it stretches downwards from left to right. Learner Activity: In Pairs . What is productive efficiency?.
(6 marks) What is pareto optimality? (4 marks) Answers: . Productive efficiency is: Productive efficiency is the production of any two goods and services in the least costly way. This means that productive efficiency is concerned with production at the lowest possible cost. The best way to produce any goods and services at the lowest cost so as to achieve productive efficiency is by fully utilizing all the available resources in the production process. Pareto optimality is a situation where you cannot change the present allocation of resources to make someone better off without making someone else worse off.