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 ________________.

Question

Quizplus · Accepted Answer

Group K receives 1/100th of the economic pie, so for them to receive $200,000 from economic growth, the pie must grow by $20,000,000. This analysis shows that special interest groups tend to press for transfers instead of economic growth.

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

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