Understanding Economic Basics

Lesson Overview

Duration: 60 minutes Class Size: 25 students Subject: Economics (Year 7) Curriculum Reference:

Curriculum for Wales: Human and Social Sciences – Understanding the Economy and Business
Relevant Learning Area: Humanities – Communities, with a focus on economic understanding and decision-making
Progression Step 3 (typically Year 7 – ages 11-12)

Learning Objectives

By the end of this lesson, all students will be able to:

Explain the basic economic concepts of supply, demand, money, and markets in simple terms.
Understand how supply and demand affect prices in markets.
Identify different types of markets (e.g., local markets, online markets).
Recognise the role of money as a medium of exchange.
Apply these concepts practically through a simulated market activity.

Curriculum Links (Curriculum for Wales)

Human and Social Sciences (HASS): Explore economic and business ideas to understand how societies meet their needs and make choices.
Grade Expectations (Progression Step 3): Explain how producers and consumers participate in markets. Understand simple principles of supply and demand and how they influence prices. Describe the role of money and different types of markets within communities.
Skills Development: Decision making, problem solving, communication, and collaboration through group activities.

Key Concepts

Supply: The quantity of a good or service that producers are willing to sell at different prices.
Demand: The quantity of a good or service that consumers are willing to buy at different prices.
Markets: Places or systems where buyers and sellers interact to exchange goods and services.
Money: A medium of exchange used to facilitate trading goods and services, including coins, notes, and digital money.

Success Criteria

Students will know they have succeeded in this lesson when they:

Can use correct terminology to define supply, demand, money, and markets.
Can explain how prices change when supply or demand changes.
Successfully participate in the simulated market activity demonstrating understanding.
Reflect on their learning verbally or in writing, using key vocabulary correctly.

Resources Needed

Whiteboard and markers
Printed cards or slips representing goods (e.g., fruit, toys, books) with prices
“Money” tokens for simulation (can be fake coins or printed currency)
Worksheets with diagrams of supply and demand curves (simplified)
Laptops/tablets or smart devices (optional for extension tasks)

Lesson Structure

1. Starter Activity (10 minutes)

Objective: Activate prior knowledge and set context.

Begin with a quick class discussion: “What do you think economics means?” Allow 3–4 students to share ideas.
Write keywords on the board (supply, demand, money, markets).
Show simple real-life examples: ask “Where do you get your sweets or toys? What makes their price go up or down?”
Introduce the day’s learning objectives.

Differentiation: Use visuals or videos for learners who need additional support. Use sentence starters for less confident speakers.

2. Explain & Explore (15 minutes)

Objective: Introduce key concepts in an engaging and accessible way.

Explain supply and demand with simple definitions and everyday examples (e.g., “If lots of people want ice cream but there aren’t many left, the price might go up”).
Use diagrams to visually show how price and quantity relate (simplified supply and demand curves).
Explain what money is and its role in buying and selling; show different currency types.
Describe types of markets: local shops, online, farmers markets.

Teaching Strategy: Use questioning to check for understanding (e.g., “If supply goes up but demand stays the same, what might happen to prices?”).

Differentiation: Provide a glossary for key terms to support vocabulary development. Use paired discussion for learners requiring social support.

3. Main Activity: Market Simulation (25 minutes)

Objective: Apply learning through a hands-on market simulation.

Divide the class into groups of five, assigning roles: producers and consumers.
Producers receive cards with items and starting quantities; consumers get “money” tokens.
Consumers try to buy items from producers in a short trading session. Producers can “raise” prices if items are scarce or “lower” them if they want to sell more.
After trading, lead a class discussion reflecting on what happened: how did supply and demand affect prices? Was money useful? What types of markets does this simulate?

Extension: Advanced learners can be asked to keep a simple record of prices and quantities sold to discuss economic trends or simulate supply/demand shifts (e.g., what if demand suddenly increases?).

Differentiation: Assign support roles for less confident students or use visual aids for the simulation. Pair students strategically for peer support.

4. Plenary & Assessment (10 minutes)

Objective: Consolidate learning and assess understanding.

Ask students to write or share verbally three sentences using the key terms learned. Example starter:
“Supply means...”
“Demand affects...”
“Money is important because...”
Use a quick quiz game or Kahoot-style interactive quiz (low-tech verbal alternative acceptable) on key concepts.
Review success criteria and ask students to self-assess (“I can explain supply and demand” – Yes/No/Not yet).
Provide feedback and note any students needing further support.

Differentiation Strategies

Support: Visual aids, sentence starters, paired/group work, glossaries of vocabulary, allowing oral responses instead of written tasks.
Challenge: Extension recording activity of market trends, researching real-world markets online, designing their own market with pricing strategies.
Inclusive: Use diverse examples relevant to students’ backgrounds and experiences to enhance engagement; allow movement breaks during simulation.

Extension Activities

Research a local market or online shop to identify examples of supply and demand influencing prices.
Create a short presentation or poster explaining how money evolved over time and the different forms it takes today.
Design a fictional product and create a marketing plan including pricing based on supply and demand concepts.

Assessment Methods

Observation during market simulation to note use of concepts and teamwork.
Written/verbal responses during plenary to check understanding of key vocabulary.
Self and peer assessment using success criteria.
Optional: short worksheet with simple scenarios for independent completion.

This lesson is designed to be engaging, practical, and inclusive, fully aligned with the Curriculum for Wales framework for Year 7 students studying economics within Humanities. It supports varied learning preferences and encourages active participation while embedding crucial economic thinking skills early in students’ education.

Teaching Instructions