Syllabus: AQA - GCSE Economics
Module: 3.1.1 Economic Foundations
Lesson: 3.1.1.3 Making Choices
Jump to Section:
Introduction
The AQA GCSE Economics unit 3.1.1.3 Making Choices forms a foundational part of the Economics curriculum, helping students understand the concept of scarcity and decision-making in both personal and broader economic contexts. This lesson sits within 3.1.1 Economic Foundations, establishing the bedrock upon which more advanced topics like resource allocation and market mechanisms are built.
Aligned with the AQA specification, this lesson is particularly valuable for developing commercial awareness and economic reasoning. For careers leads and SLT, it supports Gatsby Benchmark 4 by linking curriculum learning to real-world decision-making – a core skill in every workplace context.
Key Concepts
As outlined in the AQA GCSE Economics specification, students should be able to:
Understand the basic economic problem of scarcity and choice.
Evaluate costs and benefits in everyday decisions and wider economic contexts.
Grasp the concept of opportunity cost – the next best alternative foregone when making choices.
Recognise that every economic decision involves trade-offs, which can have personal, social or environmental consequences.
This topic provides the ideal entry point into economic thinking, laying the groundwork for interpreting consumer, producer and government behaviour in later modules.
Real-World Relevance
The ability to make informed decisions is essential – not just for economists but for every individual navigating life, education, or work. From choosing between universities, job offers or investment options, students experience opportunity cost daily.
Case Study Example:
In 2024, many young people faced the dilemma of staying in full-time education versus entering apprenticeships due to rising living costs. Choosing an apprenticeship offered immediate income, but the opportunity cost was delayed qualifications and university experiences. Discussions like this bring abstract theory to life.
Businesses, too, make daily trade-offs. During the COVID-19 recovery, many retailers had to choose between investing in online infrastructure or reopening physical stores – a choice with clear opportunity costs and long-term implications.
How It’s Assessed
This topic can appear in both Paper 1 (How markets work) and Paper 2 (How the economy works) depending on question framing. Assessments often include:
Multiple-choice questions testing definitions and basic recall
Short-answer questions applying the concept of opportunity cost to everyday choices
Structured data questions involving interpretation of scenarios with limited resources
Extended response questions (6–9 marks) asking students to evaluate economic decisions, often using the phrase ‘discuss the costs and benefits’
Command words include:
Identify, Explain, Analyse, Evaluate
Understanding how to weigh up costs and benefits clearly and apply reasoning is essential for top marks.
Enterprise Skills Integration
“Making Choices” is not just a theoretical exercise – it’s a practical, commercial skill. Through our Skills Hub Futures and business simulation tools, students are regularly placed in decision-making roles where opportunity cost and trade-offs are explicit.
Key enterprise skills embedded in this topic include:
Strategic decision-making: Choosing between investment options in a simulated business.
Problem-solving: Navigating resource constraints with limited data.
Financial literacy: Understanding cost implications of decisions.
Critical thinking: Balancing short-term needs with long-term goals.
This aligns directly with our Decision-Making & Problem-Solving and Commercial Awareness themes.
Careers Links
Understanding opportunity cost is fundamental in any job – from logistics and marketing to engineering or the public sector. This lesson directly supports:
Gatsby Benchmark 4: Linking learning to real-world roles like operations managers, project planners or finance officers.
Gatsby Benchmark 5: Use employer case studies (available in Skills Hub Futures) showing real business decisions and their trade-offs.
Gatsby Benchmark 6: Simulated workplace activities demonstrate the consequences of economic choices in real-time.
Relevant career pathways include:
Economics and finance
Policy and public administration
Retail and supply chain management
Project management
Teaching Notes
Teaching Tips:
Use choice-based classroom scenarios (e.g. students choosing how to spend a school budget) to illustrate opportunity cost in action.
Introduce mini case studies involving current affairs or relatable dilemmas (university vs. apprenticeship, work vs. travel).
Incorporate paired debates where students argue for competing choices, then evaluate trade-offs.
Leverage Skills Hub tools for zero-prep simulations that bring decision-making into a business context.
Common Pitfalls:
Students confusing cost with opportunity cost
Oversimplifying trade-offs without considering broader impacts
Failing to fully evaluate both sides in 6-mark and 9-mark questions
Extension Ideas:
Link this topic to environmental economics, asking students to consider opportunity costs of sustainable versus profitable choices.
Set a project where students track and reflect on three real decisions they’ve made during the week, identifying the opportunity cost of each.
