Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: Types of efficiency: productive, allocative and dynamic
Learning Objective/s:
  • Describe productive, allocative and dynamic efficiency and state their defining conditions.
  • Explain how each efficiency type influences welfare maximisation and market failure.
  • Analyse the standard graphical representations of the three efficiencies.
  • Evaluate policy measures that can improve each form of efficiency.
  • Apply the concepts to typical A‑Level exam questions.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheets with AC/MC and demand‑supply diagrams
  • Calculator for cost calculations
  • Handout summary of the three efficiencies
  • Sticky notes for exit tickets
 Introduction:
Begin with a quick poll: “Which local business do you think runs most efficiently and why?” Connect responses to prior knowledge of cost curves, then outline today’s success criteria – students will be able to define, illustrate and evaluate the three efficiencies and link them to market failure.
Lesson Structure:
  1. Do‑now (5’) – Students list examples of efficient/inefficient firms on sticky notes; teacher collects for later discussion.
  2. Mini‑lecture (10’) – Define productive, allocative and dynamic efficiency; show AC‑MC and demand‑supply diagrams; highlight key conditions (MC=AC, P=MC).
  3. Guided practice (12’) – In pairs, students label supplied diagrams as productive or allocative and explain the condition shown.
  4. Dynamic efficiency focus (8’) – Short video on R&D and innovation; class debate on policy tools (IPR, subsidies).
  5. Comparison activity (10’) – Complete the provided comparison table individually; peer‑check using answer key.
  6. Exit ticket (5’) – Write one way market failure can arise from each inefficiency type.
Conclusion:
Recap the three efficiencies, their graphical signatures and why they matter for welfare. Collect exit tickets to gauge understanding, and assign homework: finish the exam‑style checklist worksheet and prepare a short paragraph on how government policy can enhance dynamic efficiency.