Question

- Summer20 - GJIPALI > Activities and Due Dates > HW Unit 1 (Chapter 1) : Homework 7.8% Resources Ex Give Up? Hint Which are examples of unintended consequences? According to the "too big to fail" theory, a government has the incentive to support and eventually bail out large distressed financial institutions, as their failure would have devastating consequences for the economy as a whole. On the ground of this theory, before the 2008 financial crisis a number of big American financial institutions took excessive risk without considering its systemic consequences. During the deportation of criminals from Great Britain to Australia, the transport companies were compensated based on the number of prisoners shipped and not on the number of those delivered to destination. A large number of prisoners ended up dying on-board. In late 1989 Mexico City started its "No Drive Day" program, which consisted of restricting the circulation of cars according to their plates last digits. To drive to work every day people then bought second-hand cars whose plates had different last digits from the ones they already owned. When it was the "No Drive Day" for one car, people used the other car. As there were more old cars on the road, pollution increased. In 1988, Ford Global Technologies launched its Employee Patent Incentive Award program which provided financial rewards to Ford employees who had submitted new inventions.

Answer 1

A, B, and C are correct.

(In A, recession was the unitended consequence. In B, death of prisoners was the unitended consequence. And, in C, pollution was the unitended consequence.)