Ask Question
27 March, 14:30

How might increasing the level of government transfers reduce the size of the economic pie? check all that apply?

+5
Answers (1)
  1. 27 March, 15:08
    0
    Since the increasing level of government transfers only transfers the wealth without actual creation of goods/services, Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. Not only that,. Greater transfer activity diverts productive resources into rent-seeking activity
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “How might increasing the level of government transfers reduce the size of the economic pie? check all that apply? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers