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16 November, 14:34

Define incentive and explain the government's incentive for this regulation.

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  1. 16 November, 15:23
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    Incentives can be defined as mechanism by which we would like to increase the probability of a certain thing happening. Imagine you're incentivized to move to the outskirts of a city. A government can provide incentives in the form of subsidues where you would pay less for rent were you to move towards the outskirts of that city.
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