Lesson Plan

• Describe the concept of government failure and differentiate it from market failure.
• Explain the main causes of government failure (information, political, implementation, capture, rent‑seeking, principal‑agent, time lag).
• Analyse real‑world examples to illustrate each cause.
• Evaluate strategies to reduce government failure and assess their effectiveness.

• Projector and screen for slides/diagrams
• Printed handout of the cause‑mechanism table
• Whiteboard and markers
• Case‑study worksheets (e.g., carbon tax, subsidy examples)
• Laptop for interactive poll or quick quiz

Begin with a quick recall: “What are the main reasons markets sometimes fail?” Students share answers, linking to the need for government intervention. Explain that today’s focus is on when that intervention goes wrong – government failure. Outline the success criteria: students will be able to identify causes, give examples, and suggest ways to avoid them.

1. Do‑now (5') – Students list known market failures on sticky notes; share and discuss.
2. Mini‑lecture (10') – Define government failure, contrast with market failure, introduce the seven main causes.
3. Table analysis activity (15') – In pairs, examine the provided cause‑mechanism table, match each cause to its mechanism and example, then report findings.
4. Case‑study application (10') – Small groups evaluate a policy (e.g., low carbon tax) and identify which government‑failure causes are evident.
5. Strategy brainstorm (10') – Whole‑class discussion of mitigation strategies; teacher adds any missing points.
6. Check for understanding (5') – Quick quiz (Kahoot or handout) with three scenario‑based questions.
7. Summary & exit ticket (5') – Students write one cause of government failure and one mitigation strategy on a sticky note before leaving.

Recap the key causes of government failure and the importance of institutional design in avoiding them. Collect exit tickets to gauge understanding and assign homework: read the textbook section on government failure and prepare a 200‑word reflection on which cause is most common in current policy debates.