Lesson Plan

• Describe why governments intervene in markets and identify the main economic rationales.
• Explain at least three government instruments (e.g., regulation, taxation, price controls) and how each constrains business activity.
• Analyse the impact of a specific intervention using a real‑world example such as the UK plastic‑bag charge.
• Evaluate potential unintended consequences of interventions for firms, consumers and the wider economy.

• Projector and screen
• Whiteboard and markers
• Printed handouts of the instrument table and plastic‑bag case study
• Short video clip on the UK plastic‑bag charge (optional)
• Sticky notes for group activity
• Exit‑ticket slips

Start with a quick poll: “Who has ever paid a charge for a plastic bag?” Use the responses to highlight that government policies can affect everyday business practices. Recall previous lessons on market failure and ask students to predict why a charge might be introduced. Explain that by the end of the lesson they will be able to identify instruments, describe their effects, and evaluate side‑effects.

1. Do‑now (5') – Students write on sticky notes any government measures they have experienced (e.g., taxes, bans).
2. Mini‑lecture (10') – Present reasons for government intervention and overview of six key instruments using slides.
3. Guided analysis (12') – In pairs, complete a comparison table for two instruments, noting purpose, effect on costs/output and a UK example.
4. Case study (8') – Examine the UK plastic‑bag charge; answer guided questions on rationale, impact and unintended effects.
5. Whole‑class discussion (8') – Share findings, discuss black‑market risk and innovation suppression, link to exam checklist.
6. Check for understanding (5') – Quick quiz (Kahoot or handout) on instrument effects.
7. Consolidation (5') – Each student writes a one‑minute summary of how one instrument constrains business activity; share aloud.

Recap the four ways instruments can constrain firms (costs, market access, operational limits, price caps) and ask a few volunteers to state an unintended consequence. Students complete an exit ticket: “Name one instrument and one possible side‑effect.” For homework, they research a recent government intervention in their own country and prepare a brief note on its economic rationale and impact.