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One of the Problems with "Aiding the Poor" Is What

question 3

Essay

One of the problems with "aiding the poor" is what experts call perverse incentives.What does this term mean? Give some examples from U.S.history.


Definitions:

Goods Double

A situation where the quantity of goods available or produced doubles without a change in quality.

Laspeyres Price Index

A price index used to measure the change in the cost of purchasing a fixed basket of goods and services of the type consumed during a base period.

Prices Increase

A situation where the cost of goods and services rises over a period, reducing purchasing power.

Income

refers to money received, especially on a regular basis, for work or through investments.

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