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

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