Market Failure - Lesson Plan: 1 x 1 hour lesson
A series of 'off the shelf' lesson plans and resources for use in the classroom. This lesson deals with market failure and externalities and is relevant to the following specifications:
- AQA: AS Module 1, 10.5
- Edexcel: AS Unit 2
- OCR: AS Unit 2882, 5.2.2
Aim:
The lesson is based around the topic of genetically modified crops and the issue of market failure. The subject is very topical and there is no shortage of information for students to work on. The intention is to introduce students to the topic and encourage them to look at typical examination type questions related to this issue. The opportunity of using the debate to highlight both the positive and the negative externalities is very useful and helps to highlight the problems decision makers have in offering definitive answers to difficult questions. The final queston in the series encourages students to develop their higher order skills.
Learning Objectives:
At the end of the lesson, students should:
- Understand the difference between positive and negative externalities and be able to give clear examples of each
- Be able to draw diagrams representing positive and negative externalities with confidence
- Be able to apply knowledge of market failure to a topical issue
- Understand the importance of high quality knowledge and information in efficient markets
Resources:
- PowerPoint Presentation -Market Failure [331 KB]
- Mind Map - Market Failure
- Activity - Market Failure: Genetically Modified Food
- PCs for research (not essential but students can be encouraged to look at the Web sites suggested for further research)
Useful Links:
- Monsanto - a leading company in GM technology (http://www.monsanto.co.uk)
- FAQs for DuPont's biotechnology division (http://www.dupont.com/biotech/intro/faqs.html)
- Bayer UK - contains statements on environmental policy within its crop science division (http://www.bayercropscience.co.uk/output)
- Syngenta - you have to register to get to many of the pages but it only takes a short time! (http://www.syngenta-crop.co.uk)
- GM Nation? The public debate - very useful site focussing on the GM debate (http://www.gmnation.org.uk/)
- Guardian archived articles on the GM debate (http://www.guardian.co.uk/gmdebate/Index/0,3332,208081,00.html)
Lesson Structure:
- Introduce the subject of market failure through using the PowerPoint Presentation. Take time to work through the diagrammatic representation to ensure students fully understand. Discuss also the relevance of the problems of ignorance and lack of knowledge as factors influencing market failure. (15 minutes)
- Issue the Activity - explain the aim and purpose of the lesson and highlight the learning objectives. (5 Minutes)
- Begin the task. (40 Minutes)
The task can be completed for homework and used as a 'timed' paper activity to give students exam type practice.