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

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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.

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A perverse incentive is an unintended co...

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