Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

What economic-efficiency losses are likely to arise from a policy that redistributes income from the rich to the poor?

  • Adisincentive effects yes; distortion of individual choices between work and leisure yes; administrative costs no
  • Bdisincentive effects yes; distortion of individual choices between work and leisure yes; administrative costs yes
  • Cdisincentive effects no; distortion of individual choices between work and leisure no; administrative costs no
  • Ddisincentive effects no; distortion of individual choices between work and leisure no; administrative costs yes

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