Lesson 23 – Markets, Inequality & Stiglitz

1. Why do markets sometimes fail, according to Stiglitz?

A) Because governments always interfere

B) Because people do not have the same information

C) Because workers earn too much

D) Because technology stopped developing

2. What is information asymmetry?

A) Equal access to all information

B) Government control of prices

C) A situation where one side knows more than the other

D) A type of tax system

3. What role should the government play?

A) Leave everything to corporations

B) Remove all regulations

C) Avoid education and healthcare

D) Regulate markets and invest in public services

4. Why is inequality a problem?

A) It slows growth and weakens democracy

B) It improves market efficiency

C) It increases innovation

D) It benefits all workers

5. What does Stiglitz think about globalization?

A) It should be stopped completely

B) It needs better rules to be fair

C) It always helps poor countries

D) It has no effect on inequality

Asymmetry

Regulation

Inequality

Monopoly

Public investment

one company controlling a market

a situation where access is not equal

state spending on services like education

rules that control markets

large differences in income or wealth

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