Economics · Lesson Plan
The Key Economic Questions
Every society must answer three questions: what to produce, how to produce it, and who gets it. This lesson builds the framework — the factors of production (land, labor, capital), factor payments, the five goals of an economy, and the four economic systems (traditional, market, central planning, mixed) — then assesses understanding with multiple-choice and essay questions (answer key included).
For Teachers
Lesson at a glance
- Topic
- Economics
- Grade Level
- Grades 9–12
- Resource Type
- Lesson + Worksheet
- Estimated Time
- 45–60 minutes
- Format
- Lesson + worksheet + answer key
- Materials
- Printable lesson, worksheet, whiteboard
What Students Learn
Learning objectives
- State the three key economic questions
- Identify the factors of production and factor payments
- List the goals every economy shares
- Compare traditional, market, central-planning, and mixed economies
- Explain advantages of a mixed economy
Materials
What you’ll need
- Printed lesson, worksheet, and answer key (one per student)
- Pencils
- Whiteboard or projector
Key Terms
Vocabulary
- Factors of production
- Land, labor, and capital used to produce goods and services.
- Factor payments
- Income earned for supplying factors (rent, wages, interest).
- Market economy
- A system where supply and demand and prices coordinate decisions.
- Central planning
- A system where the government makes major economic decisions.
- Mixed economy
- A blend of market, tradition, and government planning.
- Scarcity
- Limited resources relative to unlimited wants.
For Teachers
Lesson plan
Estimated time: one 45–60 minute class period.
Lesson sequence
- The three questions (10 min). What, how, and for whom to produce — and why scarcity forces the choices.
- Resources & goals (15 min). Land, labor, and capital; factor payments; and the five economic goals.
- Economic systems (15 min). Traditional, market, central planning, and mixed — with real examples.
- Assessment (15 min). Students complete the eight multiple-choice questions and two essays, then review with the key.
Assessment
Assess the multiple-choice answers against the key and the essays for understanding of mixed economies.
Discussion
Discussion questions
- What are the three key economic questions?
- What are the factors of production, and what payment does each earn?
- How do market and centrally planned economies differ?
- What makes an economy ‘mixed’?
- Why have many centrally planned economies moved toward markets?
Printable Lesson, Worksheet & Answer Key
Key Economic Questions — Lesson, Worksheet & Answer Key
A printable lesson on the three key economic questions, factors of production, and economic systems, with a multiple-choice and essay assessment plus answer key.
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