Lesson Plan

• Describe the key characteristics of private and public goods (rivalry, excludability, non‑rivalry, non‑excludability).
• Explain why public goods generate a free‑rider problem and lead to market failure.
• Compare marginal benefit and marginal cost conditions for private versus public goods.
• Evaluate government interventions (direct provision, taxation, subsidies) that correct under‑provision.
• Apply the concepts to real‑world examples such as national defence and street lighting.

• Projector and screen
• Whiteboard and markers
• Handout with private vs. public goods comparison table
• Graph paper or digital graphing tool for MB/MC diagram
• Sticky notes for free‑rider simulation
• Calculator (optional)

Begin with a quick poll: “What items did you use this morning?” Students classify them, revealing intuitive ideas about private and public goods. Link this to prior learning on market efficiency and state the success criteria: students will be able to distinguish the two types of goods and explain why markets sometimes fail.

1. Do‑now (5’) – List daily goods and classify as private or public; teacher checks understanding.
2. Mini‑lecture (10’) – Define rivalry and excludability, present the comparison table, and introduce the free‑rider problem.
3. Diagram activity (10’) – Students draw marginal benefit and marginal cost curves for a public good, identify market vs. socially optimal output.
4. Free‑rider simulation (10’) – Small groups use sticky notes to decide contributions; discuss outcomes and link to under‑provision.
5. Government intervention discussion (10’) – Explore direct provision, taxation, and subsidies with real‑world examples.
6. Guided practice (5’) – Short worksheet questions reinforcing the private/public goods distinctions.
7. Exit ticket (5’) – Write one policy action that could improve provision of a specific public good.

Summarise how rivalry and excludability determine market outcomes and why public goods need government action. Collect exit tickets to gauge understanding and assign a homework task: research a local public good and propose a suitable intervention.