Lesson Plan: Market Failure and the Role of the Government Economics
This lesson plan includes the objectives and prerequisites of the lesson teaching students how to identify different types of goods and the role of the government in fulfilling certain human needs due to market failure.
Objectives
Students will be able to
- understand the characteristics of private goods, public goods, artificially scarce goods, and merit goods,
- understand the definition of market failure,
- understand the reasons behind market failure and how it motivates the government intervention in the economy,
- understand the following three economic roles of the government: satisfying public and social wants, achieving economic growth and stability, and achieving equity,
- understand the following pillars of capitalism: private ownership, profit motive, and market mechanism,
- understand the definition and different forms of privatization and their benefits.
Prerequisites
Students should already be familiar with
- different types of goods,
- wants and needs,
- the fundamental economic problem,
- choice, scarcity, and opportunity costs.
