Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: wage determination in imperfect markets: influence of trade unions on wage determination and employment in a labour market
Learning Objective/s:
  • Describe how monopsony and monopoly‑union power create imperfect labour markets.
  • Explain how trade unions influence wage levels and employment through collective bargaining and other tools.
  • Analyse the impact of union‑set wages on equilibrium wage and employment compared with a competitive market.
  • Evaluate government interventions (minimum wage, regulation, subsidies) in addressing the trade‑off between wage equity and employment.
Materials Needed:
  • Projector or interactive whiteboard for diagrams.
  • Whiteboard and markers.
  • Handout summarising the monopoly‑union model and key equations.
  • Worksheet with case‑study scenarios for group analysis.
  • Calculator (optional) for simple calculations.
  • Sticky notes for a quick exit ticket.
 Introduction:
Begin with a brief news clip about recent strike action to hook students and highlight real‑world relevance. Ask learners what they know about how wages are set when employers or unions have market power. Clarify that today’s success criteria are to describe the mechanisms of wage determination in imperfect markets and to evaluate the role of trade unions and government policy.
Lesson Structure:
  1. Do‑now (5'): Students write down examples of labour‑market imperfections they have encountered. (Check understanding)
  2. Mini‑lecture (10'): Explain monopsony and monopoly‑union concepts with diagrams using the projector.
  3. Guided practice (12'): Work through the monopoly‑union model on the board, deriving the equilibrium wage and employment.
  4. Group activity (15'): Analyse a case study where a union negotiates a wage increase; calculate impact on employment and discuss results.
  5. Government policy discussion (10'): Whole‑class debate on minimum wage versus employment subsidies as responses to union effects.
  6. Check for understanding (8'): Exit ticket – “If a union raises wages, what happens to employment and why?”
Conclusion:
Summarise that trade unions can push wages above the competitive level, leading to lower employment, and that government policies aim to balance equity and efficiency. Ask students to complete a short reflection for homework, applying the model to a different industry. End with a reminder to submit the exit ticket response before leaving.