Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: subsidies
Learning Objective/s:
  • Describe the economic rationale for government subsidies and how they address market failures.
  • Explain the different types of subsidies (production, consumption, export, R&D) and their intended effects.
  • Analyse the advantages and disadvantages of subsidies, including fiscal cost and market distortions.
  • Apply the subsidy mechanism to a supply‑demand diagram to predict changes in price and quantity.
  • Evaluate criteria for effective subsidy policy such as targeting and monitoring.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handout with subsidy diagrams
  • Worksheet containing case‑study questions
  • Calculator for numerical examples
  • PowerPoint slides summarising key concepts
  • Graph paper for drawing supply‑demand curves
 Introduction:
Begin with a quick poll: “What everyday products do you think receive government help?” Use responses to link prior knowledge of price support to the concept of subsidies. State that today’s success criteria are to identify why subsidies are used, distinguish their types, and predict their market impact.
Lesson Structure:
  1. Do‑now (5'): Students list examples of subsidies they know; share briefly.
  2. Mini‑lecture (10'): Define subsidies, explain the economic mechanism with the supply‑demand diagram.
  3. Group activity (12'): Analyse a case study (agricultural production subsidy) and fill a worksheet on benefits and costs.
  4. Interactive discussion (8'): Compare the four types of subsidies; students match real‑world examples to each type.
  5. Concept check (5'): Quick quiz using Kahoot/hand‑raise to assess understanding of advantages vs. disadvantages.
  6. Design challenge (10'): In pairs, students propose a subsidy for a positive externality, justify the level and targeting, then present.
Conclusion:
Recap the key points: why subsidies are introduced, their main types, and the trade‑offs involved. Students complete an exit ticket stating one advantage and one drawback of a subsidy they designed. Assign homework: research a recent government subsidy in their country and write a brief evaluation using the criteria discussed.