Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: Disadvantages of the market economic system
Learning Objective/s:
  • Describe at least five key disadvantages of a market economic system.
  • Explain how market failures such as externalities and public goods affect resource allocation.
  • Analyse the impact of income inequality and business cycles on society.
  • Evaluate why government intervention may be required to address these disadvantages.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed handout with summary table of disadvantages
  • Worksheet with case‑study questions
  • Markers and chart paper for group mind‑map
  • Access to an online supply‑and‑demand simulation showing externalities
 Introduction:
Begin with a quick poll asking students to list advantages they associate with market economies. Link these to prior lessons on price signals, then state that today they will uncover why markets alone cannot solve all societal problems. Success will be measured by their ability to identify and explain the main disadvantages and suggest appropriate government responses.
Lesson Structure:
  1. Do‑now (5'): Students write three advantages of a market system on sticky notes; share briefly.
  2. Mini‑lecture (10'): Present the key disadvantages using the illustrative table and the negative‑externality diagram.
  3. Group activity (15'): In teams, analyse a case study (e.g., pollution from a factory) and fill a worksheet comparing private vs. social costs.
  4. Whole‑class discussion (10'): Groups present findings; teacher links to concepts of public goods, information asymmetry, and business cycles.
  5. Check for understanding (5'): Quick Kahoot quiz covering definitions and impacts.
Conclusion:
Summarise how each disadvantage limits the market’s ability to meet societal goals and why mixed economies are common. Students complete an exit ticket stating one disadvantage and one policy that could mitigate it. For homework, assign a short essay evaluating whether a pure market or mixed system better addresses environmental concerns.