Lesson Plan

• Describe what demerit goods are and the negative externalities they generate.
• Explain why governments restrict imports of demerit goods (public‑health, externalities, social welfare, revenue, international commitments).
• Identify and compare at least three trade‑restriction instruments (ban, quota, tariff, technical standards) and their effects on price and quantity.
• Apply the externality framework to show how restrictions move the market toward the socially optimal outcome.
• Evaluate the advantages and disadvantages of import restrictions on demerit goods.

• Projector and screen for slides/diagrams
• Whiteboard and markers
• Handout summarising restriction types and their impacts
• Case‑study cards (e.g., Australia tobacco tariffs, South Africa sugary‑drink quota)
• Worksheet for group analysis and evaluation
• Calculator (optional) for price‑quantity calculations

Begin with the question, “What everyday product could be harming you every time you use it?” Students brainstorm examples of demerit goods and briefly discuss why societies might want to limit them. Explain that today’s success criteria are to identify the economic reasons for import restrictions and to evaluate their impacts.

1. Do‑now (5') – List demerit goods and note one health or social problem each creates.
2. Mini‑lecture (10') – Define demerit goods, negative externalities, and policy objectives; display a supply‑and‑demand diagram showing the effect of a tariff.
3. Group activity (12') – Using the provided table, match each restriction (ban, quota, tariff, technical standard, subsidy) with its mechanism, price impact, and quantity effect on a worksheet.
4. Case‑study analysis (10') – In small groups, examine a real‑world example (e.g., Australia’s tobacco tariff) and prepare a brief presentation on how the restriction works and its trade‑offs.
5. Evaluation debate (8') – Whole‑class discussion weighing health benefits against economic costs; teacher records pros and cons on the board.
6. Check‑understanding (5') – Exit‑ticket quiz with three short questions covering definitions, restriction types, and evaluation points.

Recap the key reasons governments restrict demerit‑good imports and how different instruments shift price and quantity toward a socially optimal level. Collect the exit tickets as a quick retrieval check. For homework, ask students to research another demerit good and propose a suitable import restriction, justifying it with the externality framework.