Instructional Video

Price Controls, Subsidies, and the Risks of Good Intentions

Curated and Reviewed by Lesson Planet

When prices get too high, the government should put price controls in place, right? Not necessarily. A video from Crash Course Economics explains how price controls can affect the equilibrium price of a product, and potentially lead to a shortage or deadweight loss. Additionally, it discusses subsidies for agriculture and renewable energy, and their benefits and drawbacks in the real world.

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CCSS: Adaptable
Instructional Ideas
  • Apply to a lesson about government regulation in the economy
  • Have learners engage in a role-play activity in which various industries try to keep their prices competitive amidst government subsidies and price controls
Classroom Considerations
  • First few seconds feature a joke that compares the term deadweight to your ex; the joke might appeal to teenagers or go over their heads, but isn't the best comment for a classroom setting
  • The video references Thomas Malthus in a discussion of starvation, which could lead to a quick lesson about the Malthusian catastrophe
  • Watch the comment section, as it is open to the public
  • The 20th video in a series of 35 about economics
  • This video is hosted on YouTube
Pros
  • Applies both economic mathematics and real-world examples to explain complex concepts
  • Animations are helpful and engaging
Cons
  • None