Why Might Special Interest Groups Be More Likely to Push

question 5

Multiple Choice

Why might special interest groups be more likely to push for transfers instead of economic growth?  The answer is because it usually takes a much __________________ percentage _______________ in growth to equal what they can get from the transfer.

• A)smaller; decrease
• B)larger; increase
• C)larger; decrease
• D)smaller; increase

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Definitions:

Diminishing Returns

A rule that asserts when one input in the production process is augmented without changes to the others, there will ultimately be a decline in output after reaching a specific level.

Average Fixed Cost

The cost per unit that remains constant regardless of the level of production or output.

Output

The total amount of goods or services produced by a company or economy.

Total Cost

The total expense incurred in the production of goods or services, including both fixed and variable costs.