Jan 08 2013

Income Inequality and Asymmetric Information as Market Failures – student animations

The following animations were made by this year’s grade 12 IB Economics students when they were studying market failure in the 11th grade. They are meant to show scenarios that demonstrate two types of market failure that may arise in society: asymmetric information and income inequality.

Watch the videos and answer the questions that follow.

Income Inequality:

Discussion Questions: After watching your assigned video, answer the questions that follow

  1. In the animation you watched, what was the “market” that was being discussed?
  2. According to the dialogue, how does a market failure lead to the existence of income inequality?

Information Asymmetry

Discussion Questions: After watching your assigned video, answer the questions that follow

  1. In the animation you watched, what was the “market” that was being discussed?
  2. How did asymmetric information between the buyer and seller in the market lead to a market failure?

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

2 responses so far

2 Responses to “Income Inequality and Asymmetric Information as Market Failures – student animations”

  1. Maximuson 15 Jan 2013 at 3:58 am

    Hello Mr. Welkers!
    I’m really sorry posting this here, since it’s not relevant to the video but I don’t really know how to contact you so I’m just doing this.

    I recently wrote my commentary for macro and submitted it, but it was about 10 words over the word count. I’m really regretting now not taking the extra time to cut it down, because worrying about this is getting in the way of my exam studying!

    How exactly do the examiners mark the commentaries? I heard that they scanned the document to check for the word count, and also used this to check for plagiarism? Is this true?! I feel like I might have “plagiarized” just a bit, but I am not sure if actually would count as that. Basically, a decent portion of my commentary includes explanations which are almost word for word out of our textbook. Is this okay?

    It would REALLY mean a lot to me if you would respond to this because I’m very worried about my commentary. Thanks in advance.

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  2. Jason Welkeron 24 Jan 2013 at 3:18 pm

    Hi Maximux. Two answers for you:

    1) If one of your commentaries is over the word count you will lose ONE mark on the final criteria, for portfolio requirements. This is one out of a possible of 45 marks total.

    2) If any of your commentary is copied word for word out of a textbook, and you do not provide a citation indicating that the words are taken from the textbook, then this is considered plagiarism and if found out your whole portfolio will be disqualified, you will fail IB Economics and not earn your IB diploma. You MUST cite all sources used, including your textbook! Best bet is to rephrase any explanations or definitions in your own words.

    Regards,

    Mr. Welker

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