Table of Contents
- 1 What is an example of the Cobra effect?
- 2 What is the Cobra effect in economics?
- 3 Did the Cobra effect really happen?
- 4 Which best defines the term Cobra effect as described in the text?
- 5 When did the Cobra effect happen?
- 6 Why is the Cobra effect important to economics?
- 7 What are cobras value to society?
What is an example of the Cobra effect?
The term derives from an attempt to eradicate snakes in India, wherein people bred cobras to collect rewards for their capture. Examples of this effect in the US include gun buyback programs and, more recently, a specific attempt to control the spread of COVID-19.
What is the Cobra effect in economics?
The “Cobra Effect” refers to a situation where the solution to a problem ends up being worse than the problem itself. When the markets bottomed out in March and April, the government took action in the form of monetary policy and fiscal stimulus to prevent the economy from falling into a depression.
What was the overall effect of the bounty program on the cobra population in Delhi?
Smart! Once the government got wise to the cobra farming scheme, they ended the bounty program, which created the true cobra effect. Now that they were stuck with a bunch of worthless and potentially deadly snakes, the farmers simply released the cobras.
Did the Cobra effect really happen?
The term cobra effect was coined by economist Horst Siebert based on an anecdote of a (possibly ahistorical) occurrence in India during British rule. Eventually, however, enterprising people began to breed cobras for the income. When the government became aware of this, the reward program was scrapped.
Which best defines the term Cobra effect as described in the text?
The cobra effect is when a solution worsens a problem. Many well-intentioned programs backfire.
Why is it called the Cobra effect?
The term “Cobra Effect” originated during the time of the British rule of colonial India. The British government wanted to tackle the worrying number of venomous cobra snakes in Delhi. Their strategy was to offer a bounty for every dead cobra.
When did the Cobra effect happen?
Why is the Cobra effect important to economics?
The cobra effect occurs when an adopted strategy or solution to a problem makes the problem worse due to unseen consequences. The term is used to illustrate the causes of incorrect stimulus in economy and politics. Initially, this was a successful strategy as large numbers of snakes were killed for the reward.
Where did the Cobra effect come from?
What are cobras value to society?
In general, cobras provide values for both the ecosystem and for humans. Ecologically, cobras are important to food chains, helping to maintain the balance of prey species and controlling agricultural pests such as rats and mice.