Lesson Plan

Resources → Subject Notes → Economics → Notes
Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: Definitions of terms associated with market failure: public goods, merit goods, demerit goods, private benefits, external benefits, social benefits, private costs, external costs, social costs, monopoly
Learning Objective/s:
  • Describe the key definitions of public goods, merit and demerit goods, private/external/social benefits and costs, and monopoly.
  • Explain how private and social outcomes differ and why market failures arise.
  • Apply the concepts to identify examples of under‑provision, over‑consumption, and externalities.
  • Analyse a supply‑demand diagram to locate private vs. social equilibrium and the resulting dead‑weight loss.
Materials Needed:
  • Projector and screen for slides/diagram
  • Printed handout with definitions and comparison table
  • Whiteboard and markers
  • Sticky notes for group activity
  • Exit‑ticket slips
 Introduction:
Begin with a quick poll: “Which public services do you use daily without paying?” This activates prior knowledge of non‑excludable goods. Explain that today’s lesson will unpack the terminology that reveals why markets sometimes fail, and state that students will be able to distinguish private from social outcomes by the end of the lesson.
Lesson Structure:
  1. Do‑now (5'): Students list examples of “free” goods and share with the class.
  2. Direct instruction (10'): Teacher presents key definitions using slides, highlighting non‑excludable and non‑rivalrous characteristics.
  3. Guided practice (10'): Class completes the private vs. social benefits/costs table for provided scenarios.
  4. Group activity (10'): Teams analyse a case (e.g., vaccination, pollution) and sketch the corresponding supply‑demand diagram showing private and social equilibrium.
  5. Whole‑class debrief (5'): Groups present findings; teacher emphasises monopoly dead‑weight loss.
  6. Check for understanding (5'): Quick quiz via Kahoot or exit‑ticket question.
Conclusion:
Recap how private and social outcomes differ and why intervention may be required. Collect exit tickets where each student writes one real‑world example of a market failure discussed. For homework, ask students to find a news article illustrating a merit or demerit good and explain the externalities involved.