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 _________________.

Question

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Since the group receives a 1/10,000th slice of the economic pie, for them to be indifferent between a transfer of $1,000 and an economic growth policy, the economic growth must be 10,000 times larger than the transfer.

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

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