Special interest group A receives a 1/10,000?? 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 _________________.

Question

Quizplus · Accepted Answer

Group A receives a 1/10,000 slice of the economic pie, so for them to be indifferent, the economic growth must be 10,000 times larger than the transfer to equate the benefit they would receive from the growth to the $1,000 transfer.

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