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.

Question

Quizplus · Accepted Answer

Tax-collecting agencies cost money to administer, and their expenses are a part of the cost of income transfers. Income transfers involve collecting taxes from those who earn higher incomes and providing financial assistance to those in need. The costs associated with administering the tax collection and income transfer programs include personnel, equipment, and overhead expenses.

Which of the Following Is Part of the Cost of Income