Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Economics
Lesson Topic: The concept of static and dynamic efficiency
Learning Objective/s:
  • Define static and dynamic efficiency and distinguish between them.
  • Explain the conditions for allocative and productive efficiency and how they are measured.
  • Analyse the causes of static and dynamic market failures and evaluate appropriate policy responses.
  • Apply the concepts to compare efficiency outcomes using diagrams and real‑world examples.
Materials Needed:
  • Projector and laptop for slides
  • Whiteboard and markers
  • Printed handouts with supply‑demand and PPF diagrams
  • Calculators
  • Worksheet with practice questions
  • Sticky notes for exit tickets
 Introduction:
Ask students to consider why smartphones become cheaper over time while new features appear, linking to innovation. Review the previous lesson on Pareto optimality and market failure. State that by the end of the lesson they will be able to identify static versus dynamic efficiency and suggest suitable policies.
Lesson Structure:
  1. Do‑now (5'): Quick quiz on Pareto optimality and basic efficiency concepts.
  2. Mini‑lecture (15'): Definitions of static and dynamic efficiency, conditions for allocative & productive efficiency, with diagrams.
  3. Guided practice (10'): Analyse a supply‑demand graph to locate the static efficiency point (p = MC) and calculate consumer/producer surplus.
  4. Group activity (15'): Case study on R&D subsidies – identify dynamic efficiency elements and discuss trade‑offs.
  5. Whole‑class discussion (10'): Complete a comparison table of static vs dynamic efficiency, highlighting market failures and policy tools.
  6. Exit ticket (5'): Write one policy that improves static efficiency and one that enhances dynamic efficiency.
Conclusion:
Summarise the key differences between static and dynamic efficiency and how each relates to welfare. Collect exit tickets to check understanding and assign homework: finish the worksheet and prepare a short paragraph describing a real‑world policy that promotes dynamic efficiency.