The costs of the redistribution of income include each of the following EXCEPT:

Question

Quizplus · Accepted Answer

The redistribution of income can result in higher prices for goods and services if the cost of producing those goods and services increases due to higher taxes on businesses. However, this is not considered a direct cost of the redistribution of income as it is an indirect consequence. The other options, administrative costs, reduced work effort due to higher taxes, and tax avoidance and fraud, are all direct costs of the redistribution of income.

The Costs of the Redistribution of Income Include Each of the Following