THE QUESTION WILL BE ON FILE PLEASE

2. Transfer payments and the economic pie How might increasing the level of government transfers reduce the size of the economic pie? Check a\" that apply. [3 People may devote less time and energy to avoidance of taxes needed to finance increased transfer payments. C] 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. Cl Greater transfer activity diverts productive resources into rent-seeking activity