Lesson Plan

• Describe why governments impose taxes and identify the main types of direct and indirect taxes.
• Explain how taxation affects consumers, workers, firms, the government and the overall economy.
• Analyse tax incidence and calculate the dead‑weight loss from a per‑unit tax.
• Evaluate the trade‑off between revenue generation and economic efficiency.

• Projector and screen
• PowerPoint slides on fiscal policy
• Printed handout with summary tables
• Worksheet on tax incidence and DWL calculations
• Calculators
• Whiteboard and markers

Imagine the price of your favourite snack suddenly rises – what caused that change? You already know how supply and demand determine prices, and today we’ll see how taxes shift those curves. By the end of the lesson you will be able to identify who bears a tax and explain its impact on different groups.

1. Do‑now (5') – quick quiz on types of taxes and why governments tax.
2. Mini‑lecture (10') – reasons for taxation, introduction to tax incidence, using slides and the board.
3. Diagram activity (10') – students draw a supply‑demand diagram with a per‑unit tax and calculate the dead‑weight loss.
4. Group analysis (15') – each group examines the impact on one stakeholder (consumers, workers, firms, government, economy) using the summary table; groups present key points.
5. Whole‑class discussion (10') – compare findings, discuss revenue vs efficiency trade‑offs.
6. Exit ticket (5') – one‑sentence answer to “What determines who bears a tax?”

We revisited how taxes shift curves, who ultimately pays, and the resulting dead‑weight loss. The exit ticket will confirm understanding, and for homework you will complete a worksheet that applies tax‑incidence analysis to a real‑world tax and suggest how the revenue could offset efficiency losses.