Lesson Plan

Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: consequences of government failure
Learning Objective/s:
  • Describe the main causes of government failure.
  • Explain how government failure can create dead‑weight loss and equity distortions.
  • Evaluate policy interventions using a cost‑benefit and unintended‑effects checklist.
  • Apply the concepts to a real‑world example (e.g., carbon tax) to identify potential failures.
Materials Needed:
  • Projector and screen
  • Slide deck summarising market vs. government failure
  • Printed worksheet with case‑study questions
  • Whiteboard and markers
  • Calculator or spreadsheet template for DWL calculations
  • Graph paper (optional)
Introduction:
Begin with a quick poll: “What happens when a well‑intentioned policy makes things worse?” Connect to the previous lesson on market failure and outline the success criteria – students will identify causes and consequences of government failure and assess policies using a checklist.
Lesson Structure:
  1. Do‑now (5') – Write one example of a government policy that back‑fired; share a few responses.
  2. Mini‑lecture (10') – Review causes of government failure with slides and a supply‑and‑demand diagram.
  3. Guided analysis (12') – In pairs, examine the policy‑tool table and pinpoint potential government failures for each tool.
  4. Case study (15') – Carbon‑tax worksheet: calculate the optimal tax, discuss under‑/over‑tax scenarios and political influences.
  5. Checklist application (8') – Groups apply the evaluation checklist to a chosen policy and present their findings.
  6. Formative check (5') – Exit ticket: one sentence summarising the biggest risk of government intervention.
Conclusion:
Recap that while intervention can correct market failures, mis‑design creates new welfare losses. Collect exit tickets, remind students to read the textbook chapter on cost‑benefit analysis, and assign a short reflection on how political motives can shape policy outcomes as homework.