Special Interest Group Q Receives a 1/10,000?? Slice of the Economic

question 26

Multiple Choice

Special interest group Q receives a 1/10,000?? slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies,the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest groups tend press government for ______________ instead of ________________.

• A) $50,000,000; economic growth; transfers
• B) $500,000; transfers; economic growth
• C) $500,000,000; transfers; economic growth
• D) $5,000,000; transfers; economic growth
• E) none of the above

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Definitions:

Sample Standard Deviation

A measure of the amount of variation or dispersion of a set of values in a sample.

Null Hypothesis

A default hypothesis that there is no statistical significance in a set of given observations, aiming to be either rejected or not rejected based on test results.

Standard Error

The standard deviation of the sampling distribution of a statistic, most commonly the mean.

Test Statistic

A calculated value used in statistical hypothesis testing to determine whether to reject the null hypothesis, based on the difference between observed data and what is expected under the null hypothesis.