Adam Almany
Question: Describe three examples of how incentives can result in unattended consequences.
An example of incentives resulting in unintended consequences is the crisis involving the Black Rhinos. The Black Rhino was once large in numbers but because of its extremely expensive horns, hunters have tracked them down and killed them for their horns. The hunters sell the horns on the black market for extreme profits. This resulted in a giant loss of numbers in the population of the Black Rhino's. Another example of incentives resulting in unintended consequences is when the government taxes the people. The people work to provide for their families and taxing them reduces their incentives to work because they do not earn what they work for. This causes problems because the worker at the end of the day is working for only about half his income the rest is paid to the government in taxes. The last example is how the government taxes an individual item more than others. This is unfair for consumers because they work hard in order to enjoy daily items but instead can not afford because of the extreme taxation on that item.
