Economics — Market Failure and Government Intervention

Exam board: AQA  |  Back to subjects

Board-Specific Note

AQA specification; content aligns with the national A-Level syllabus.

Learning Objectives

• Identify types of market failure
• Explain externalities
• Evaluate government policies

Key Points

• Public goods, externalities, monopoly
• Negative and positive externalities
• Taxes, subsidies, regulation

Lesson Plan (50 minutes)

1. Starter (5 min): Recall prior knowledge of market failure and government intervention with quick questions.
2. Teaching (15 min): Work through each of the learning objectives, explaining principles step by step.
3. Key points review (5 min): Revisit the key points together, confirming understanding.
4. Worked example (10 min): Model the example question: What is a negative externality?. Solution: A cost to a third party, e.g. pollution
5. Practice (10 min): Students attempt the practice questions independently; circulate and support.
6. Plenary (5 min): Review answers and address misconceptions.

Homework

• Give an example of a public good
• Explain how a tax corrects pollution
• Evaluate a subsidy

Assessment

Check practice answers against the model answer; use the built-in practice questions as formative assessment.