### Economics Lesson Plan: Concept of Utility
#### Grade Level:
Senior Secondary 2
#### Subject:
Economics
#### Duration:
60 minutes
#### Objectives:
1. Understand and define the concept of utility.
2. Identify and differentiate between types of utility.
3. Explain the law of diminishing marginal utility.
4. Apply the concept of utility to real-world situations.
#### Materials Needed:
- Whiteboard and markers
- PowerPoint presentation or overhead slides
- Handouts with key terms and definitions
- Graph paper
- Calculators
- Case study examples
#### Lesson Structure:
1. **Introduction (10 minutes)**
- Begin with a brief introduction to the topic.
- Use a relatable example, such as eating slices of pizza, to illustrate how satisfaction (utility) changes with each additional slice.
- State the objectives of the lesson.
2. **Presentation (15 minutes)**
- **Definition of Utility:**
- Explain utility as the satisfaction or pleasure that people derive from consuming a good or service.
- **Types of Utility:**
- Total Utility: The overall satisfaction received from consuming a certain quantity of a good or service.
- Marginal Utility: The additional satisfaction gained by consuming one more unit of a good or service.
- **Law of Diminishing Marginal Utility:**
- Define and explain the principle which states that as a person consumes additional units of a good, the satisfaction gained from each successive unit decreases.
- Use visual aids and graphs to illustrate these concepts.
3. **Activity (20 minutes)**
- Divide students into small groups.
- Provide each group with a case study example, such as a consumer enjoying successive cups of coffee.
- Have the groups calculate and graph the total utility and marginal utility, discussing their findings.
- Each group will present their graphs and summarize their findings.
4. **Discussion (10 minutes)**
- Facilitate a class discussion on the real-world applications of the concept of utility.
- Questions to consider:
- How does understanding utility help businesses in setting prices?
- Can utility be measured objectively, or is it purely subjective?
- How do consumers use the concept of utility to make purchasing decisions?
5. **Conclusion (5 minutes)**
- Recap the key points covered in the lesson.
- Highlight the importance of understanding the concept of utility in economics.
- Address any remaining questions from students.
6. **Assessment (5 minutes)**
- Distribute a short quiz or exit ticket with questions that review the main concepts (e.g., define utility, explain the law of diminishing marginal utility, etc.).
- Collect and quickly review the quizzes to gauge understanding.
### Homework Assignment:
- Write a one-page essay on a product or service you frequently consume. Describe how your total utility and marginal utility change as you consume more of it. Identify any point at which the law of diminishing marginal utility becomes evident.
### Additional Notes:
- Encourage students to consider various factors that can influence utility, such as preferences, income, and available alternatives.
- Provide real-world examples from the students’ own lives to make the material more engaging and relatable.
- Be prepared to offer extra help or additional practice problems for students who may need it.
### References:
- Textbook: Principles of Economics by N. Gregory Mankiw
- Handout: Key terms and definitions for the concept of utility
By following this lesson plan, students will gain a comprehensive understanding of the concept of utility, its types, and how it applies to real-world economic situations.