Which of the Following Is Part of the Cost of Income

question 267

Multiple Choice

Which of the following is part of the cost of income transfers?

• A) Tax-collecting agencies cost money to administer.
• B) Taxing incomes encourages people to work harder.
• C) Income transfers make the results more unfair.
• D) Income transfers increase the size of the economic pie.
• E) Income transfers are a similar to allocating resources using a lottery.