Consider this chapter's paradox: Sometimes attempts to help the poor create perverse incentives that induce more poverty in the long run.What are perverse incentives? Offer an example that illustrates the meaning.Describe a governmental policy or program that uses a better model,one that avoids perverse incentives.

Question

Quizplus · Accepted Answer

The Answer of Consider this chapter's paradox: Sometimes attempts to help the poor create perverse incentives that induce more poverty in the long run.What are perverse incentives? Offer an example that illustrates the meaning.Describe a governmental policy or program that uses a better model,one that avoids perverse incentives.

Consider This Chapter's Paradox: Sometimes Attempts to Help the Poor