Which of the following is an example of an unintended consequence?
A) Competition between two businesses causes each to lower prices.
B) A tax rebate on electric cars results in increased household electricity consumption.
C) A tax cut leads to a spike in consumer spending.
D) Low interest rates encourage businesses to borrow money from banks.
E) A welfare program causes individuals to purchase necessities and seek employment.

Question

Quizplus · Accepted Answer

The unintended consequence in this scenario is that the tax rebate, intended to incentivize the use of electric cars, actually leads to increased household electricity consumption. This was likely not the intended outcome of the policy.

Which of the Following Is an Example of an Unintended