Special Interest Group a Receives a 1/10,000^th Slice of the Economic

question 26

Multiple Choice

Special interest group A receives a 1/10,000^th slice of the economic pie (Real GDP) .It is seeking a transfer of $1,000.For group A to be indifferent between a transfer policy and an economic growth policy,economic growth must be ________________ times larger than the _________________.

• A) 1,000; transfer
• B) 10,000; transfer
• C) 100; transfer
• D) 10,000; transfer minus $1,000
• E) 1,000; transfer; minus $10,000