Which Is a Moral Hazard Associated with Transferring Money from High-Income

Multiple Choice

Which is a moral hazard associated with transferring money from high-income to low-income groups?

A) The taxation of higher-income individuals may cause them to work less hard.
B) The taxation of higher-income individuals may cause them to save less.
C) Individuals may reduce their labor supply to qualify for the means-tested transfers.
D) The administrative costs of the transfer are high.