This lesson is a perfect introduction to market failure. The lesson includes lots of detailed theory, diagrams, examples and tasks. The lesson starts with a look at productive and allocative efficiency. The lesson then explains what market failure is and why it is a big problem. The lesson then looks briefly a the following types of market failure:
* Merit and Demerit Goods
* Public goods
Main lesson aim: Students will understand what market failure is and the main causes of market failure.
I have made a nice task where students need to tick whether a product is a public, merit or demerit good and explain their answer. I have also included a nice worksheet on the topics covered. I have also included a student copy of the PPT. This lesson is perfect for teaching Economics.