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

question 53

Multiple Choice

Special interest group Q receives a 1/10,000^th 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:

Formal Agreement

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Distributorship

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Franchisor

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Exclusive Territory

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