Special interest group K receives a 1/1,000th 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. $200,000,000; economic growth; transfers
B. $20,000,000; economic growth; transfers
C. $200,000,000; transfers; economic growth
D. $20,000,000; transfers; economic growth
E. none of the above
Answer: C
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