Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Government policies for market failure
Learning Objective/s:
  • Describe the main types of market failure (externalities, public goods, information asymmetry, monopoly).
  • Explain how different government policy instruments aim to correct each type of market failure.
  • Evaluate the efficiency and equity trade‑offs of at least two policy tools.
  • Apply the concept of a Pigouvian tax to a real‑world example.
Materials Needed:
  • Projector and screen
  • Slide presentation
  • Printed handout summarising policy instruments
  • Case‑study worksheets
  • Whiteboard and markers
  • Calculator (optional)
 Introduction:
Begin with a quick poll: “Which market failures have you seen in everyday life?” Connect responses to prior lessons on supply‑demand equilibrium. State that today’s success criteria are to identify policy tools for each failure and assess their trade‑offs.
Lesson Structure:
  1. Do‑now (5') – short quiz on types of market failure.
  2. Mini‑lecture (10') – overview of government interventions (taxes, subsidies, regulation, public provision, price controls, competition & information policies).
  3. Group matching activity (15') – using the handout, groups match each policy tool to the failure it best addresses; teacher circulates for clarification.
  4. Case‑study analysis (10') – apply a Pigouvian tax to a pollution scenario; calculate the tax rate that aligns MPC with SMC.
  5. Whole‑class discussion (10') – evaluate efficiency vs. equity and administrative costs of the chosen tools.
  6. Exit ticket (5') – students write one sentence naming the most effective policy for a given failure and why.
Conclusion:
Recap the link between market failures and the appropriate government response, highlighting the trade‑offs discussed. Collect exit tickets to gauge understanding and address any lingering misconceptions. Assign homework: research a recent government policy aimed at correcting a market failure and prepare a brief critique.