Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: how government might deal with market failure
Learning Objective/s:
  • Describe the four main types of market failure (public goods, externalities, information asymmetry, market power).
  • Explain how specific government interventions (taxes, subsidies, regulation, competition policy) correct each type of market failure.
  • Evaluate the advantages and limitations of government action in improving economic welfare.
  • Apply the concept of a Pigouvian tax or subsidy to a simple supply‑demand diagram.
Materials Needed:
  • Projector and screen
  • PowerPoint slides summarising market failures and interventions
  • Handout with the intervention table and example cases
  • Whiteboard and markers
  • Worksheets for diagram drawing and matching activity
  • Exit‑ticket cards
 Introduction:
Begin with a quick poll: “What everyday problems do you think the government solves?” Connect responses to the concept of market failure. Explain that today’s lesson will explore why governments intervene and how they choose policy tools. Success criteria: identify types of market failure, match appropriate interventions, and critique their effectiveness.
Lesson Structure:
  1. Do‑now (5’): Students list examples of goods/services provided by the government and share with the class.
  2. Mini‑lecture (10’): Define market failure and present the four types with real‑world examples using slides.
  3. Interactive matching activity (12’): In pairs, complete a worksheet that matches each market failure to a government intervention and its purpose.
  4. Diagram demonstration (8’): Teacher models a Pigouvian tax on a supply‑demand graph; students sketch the shift on their worksheets.
  5. Group discussion (10’): Evaluate advantages and limitations of interventions; each group lists two pros and two cons.
  6. Check for understanding (5’): Quick quiz (Kahoot or exit ticket) on key concepts.
Conclusion:
Recap that government action aims to align private and social costs/benefits, yet can be hindered by design flaws and political pressures. Ask students to write one exit‑ticket response naming a market failure and proposing the most suitable policy tool. For homework, research a recent government policy that addresses a market failure and prepare a brief summary to share next lesson.