Special Interest Group K Receives a 1/100^th Slice of the Economic

question 17

Multiple Choice

Special interest group K receives a 1/100^th slice of the economic pie.Its net benefit from either an economic growth policy or a transfer policy is $200,000.In order for group K 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 to press government for ______________ instead of ________________.

• A) $20,000,000; economic growth; transfers
• B) $2,000,000; transfers; economic growth
• C) $20,000,000; transfers; economic growth
• D) $15,000,000; economic growth; transfers
• E) none of the above

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Definitions:

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An individual whose primary job involves processing and working with information or knowledge, rather than manual labor.

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A chemical or natural substance added to soil or land to increase its fertility and enhance plant growth.

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The sale of goods in large quantities, often to be retailed by others.

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A specialized outdoor area equipped with child-safe recreational facilities, designed for children at daycare centers.