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

Multiple Choice

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 ________________.

A) $20,000,000; economic growth; transfers
B) $2,000,000; transfers; economic growth
C) $20,000,000; transfers; economic growth
D) $15,000,000; economic growth; transfers
E) none of the above