Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Economics
Lesson Topic: production quotas
Learning Objective/s:
  • Describe the economic rationale for government intervention using production quotas.
  • Explain how a production quota operates, including permit allocation and tradable permits.
  • Analyse the advantages and disadvantages of production quotas compared with other policy tools.
  • Apply the concept by interpreting a supply‑demand diagram that incorporates a quota.
  • Evaluate when quotas are an effective response to negative externalities.
Materials Needed:
  • Projector and laptop for slide deck
  • Whiteboard and markers
  • Printed handouts of quota supply‑demand diagram
  • Worksheets with case‑study questions
  • Calculators
  • Sticky notes for exit ticket
 Introduction:
Begin with a brief news clip about the EU Emissions Trading System to hook interest. Ask students to recall previous lessons on externalities and market failure. State that by the end of the lesson they will be able to identify when and how production quotas can correct these failures.
Lesson Structure:
  1. Do‑now (5'): Quick quiz on types of market failure and their impacts.
  2. Mini‑lecture (10'): Explain the rationale for quotas, how they are set, and the role of tradable permits.
  3. Diagram activity (10'): Students draw a supply‑demand graph showing the private equilibrium, socially optimal output, and the quota line.
  4. Group case‑study (15'): Analyse a real‑world example (e.g., EU ETS or U.S. fisheries), discuss pros and cons, and prepare a short presentation.
  5. Whole‑class debrief (5'): Consolidate key points and address misconceptions.
Conclusion:
Summarise how quotas provide quantity certainty and can be cost‑effective when permits are tradable, while noting potential allocation and enforcement challenges. For the exit ticket, ask each student to write one situation where a quota would be preferred over a tax. Assign homework: research another quota policy and prepare a brief summary for the next class.