Lesson Plan

• Describe the defining characteristics of public goods and how they create market failure.
• Explain the social and economic consequences of misallocation when public goods are under‑provided.
• Analyse the ways government intervention can correct the under‑provision of public goods.
• Evaluate the efficiency and equity trade‑offs associated with public sector provision.

• Projector and screen
• Whiteboard and markers
• Printed handout with public‑good examples and table
• Worksheet with case‑study questions
• Calculator (for DWL calculations)
• Sticky notes for exit tickets

Begin with a quick question: “What would happen if street lights disappeared tonight?” Use this hook to link students’ everyday observations to the concept of public goods. Review prior learning on market failure and outline today’s success criteria – students will identify public‑good characteristics, explain the impacts of non‑provision, and propose government solutions.

1. Do‑now (5') – Students write three examples of public goods they encounter daily.
2. Mini‑lecture (10') – Define non‑excludability and non‑rivalry; illustrate with the street‑lighting example.
3. Group analysis (15') – Using the handout table, groups discuss the four implications of non‑provision and record key points.
4. Government intervention activity (10') – Role‑play budgeting: decide which public goods the government should fund and why.
5. Diagram drawing (10') – Students sketch the MB‑MC diagram, label Q* and calculate the dead‑weight loss.
6. Exit ticket (5') – Write one sentence answering: “Why does the free market fail to provide public goods?”

Summarise the key take‑aways: public goods’ characteristics lead to free‑rider problems, causing misallocation; government action can correct this but must balance efficiency and equity. Collect exit tickets and remind students of the homework – research a local public good, describe how it is provided, and note any provision challenges.