Which of the following is NOT a cost of the redistribution of income?

Question

Quizplus · Accepted Answer

Reduced marginal benefits to extra income is not a cost of the redistribution of income. Redistribution typically aims to increase the marginal benefits of extra income for lower-income individuals by transferring resources from higher-income individuals, who experience diminishing marginal utility from additional income. The costs associated with redistribution generally include reduced incentives to work and earn, tax avoidance and evasion, and administrative costs of implementing redistribution policies.

Which of the Following Is NOT a Cost of the Redistribution