Archive for the 'Asymmetric Information' Category

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?

4 responses so far