Question

Use at least 10 of the following terms in an essay. You should not define the terms in the essay, but rather use the terms to create a story.

1. Asymmetric information 2. Asset stripping 3. Thatcherism 4. Perfect markets 5. Inequality 6. Seniority wages 7. Mittelstand 8. Flexicurity 9. Externalities 10. Laissez-faire

11. Monopoly 12. Incentives 13. Capture of regulatores 14. Crony capitalism 15. Commanding heights 16. Privatization 17. Economic mobility 18. Rule of law 19. Seigniorage 20. Intensive growth

Answer 1

There is a lot of aymmetric information prevalent in the developing world as governments provide firms incentives irrationally with there being inequality in terms of relaying information. They favour certain firms and this creates monopoly in the market as firms have that advantage to showcase intensive growth in their profits. This leads to asset stripping of potential threats in the market.

It also leads to absence of perfect markets in the ecosystem and there is more inequality in the population of a country. This sort of crony capitalism is prevalent all over the world, even in developed countries to a certain extent.

Because of this commanding heights emerged as the rise of free markets wherein talented and innovative firms have emerged to address to people's needs and give them quality products, at the same time compete with monopolistic firms who turned lethargic because of low competition, this has led to privatization and rise in economic mobility as less abled families and individuals are able to earn and prosper.