BGS 2

According to Stiglitz markets on their own will fail to achieve -------- and sustainable prosperity. Markets play an invaluable role in any well-functioning economy and yet they often fail to produce fair and efficient outcomes, producing too much of somethings (pollution) and too little of other things (basic research)

• shared

• great

• huge

• reasonable

Stiglitz suggested that the wealth of a nation rests on two pillars: ---------- as a result of knowledge, that results out of basic research and good --------- that allow people to interact , to trade and invest with security.

• production, laws

• productivity, organizations

• productivity, laws

• production, organizations

----------- seeking is associated with attempting to get a large share of the nation's economic pie, in contrast with wealth creation, which strives to increase the size of the pie. Stiglitz

• Profit

• Revenue

• Rent

• Wealth

A less ---------- society, an economy with more equality, performs better. Basically invidious are inequalities based on race, gender and ethnicity. Stiglitz

• racial

• caste-based

• polarized

• divided

Government programs to achieve shared prosperity need to focus both on ----------- and ----------------- of market income that individuals enjoy after taxes and transfers,

• pre-distribution, re-distribution

• post-distribution, redistribution

• inter-distribution, post-distribution

• pre-distribution, post-distribution

According to Stiglitz --------- and economics cannot be separated. He says to create an effective system of checks and balances, checking the potential abuses of very wealthy, we have to create an economy with greater --------- of wealth and income.

• society, equality

• society, inequality

• politics. equality

• politics, inequality

Stiglitz talks about what is emerging in conflict with higher --------- the greed, selfishness, moral turpitude, willingness to exploit others and dishonesty that the Great Recession exposed in the financial sector are evidenced elsewhere, and just not in the United States.

• aspirations

• values

• goals

• achievements

Stiglitz believes that the world is highly ---------- and therefore US must manage the international relations better than the past

• technology-oriented

• globalized

• inter-connected

• volatile

Stiglitz believes that the comprehensive agenda to restore growth and shared prosperity is to provide more support to basic ---------- and more encouragement to ---------- sector in wealth creation rather than rent-seeking

• research, private

• industries, private

• research, public

• industries, public

According to Stiglitz, the ------------ is a means to an end, not an end in itself.

• government

• economy

• politics

• capitalism