Special interest group K receives a 1/100th 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) $20,000,000; transfers; economic growth
E) none of the above
C
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A company will shut down in the short run if it cannot cover its __________ and will exit the industry in the long run if it cannot cover its __________
Fill in the blank(s) with correct word
The central bank of the European Union is called the
A) Federal Reserve. B) European Central Bank. C) Banco Europe. D) Bundesbank.
Patent laws that allow the inventor to maintain monopoly rights to an invention increase the price of the product and
a. increase the profitability of inventive activities, thereby speeding up technological developments. b. increase the profitability of inventive activities, thereby slowing down technological developments. c. decrease the profitability of inventive activities, thereby speeding up technological developments. d. decrease the profitability of inventive activities, thereby slowing down technological developments.
The government performs each of the following economic functions except
A. collecting taxes. B. spending. C. issuing regulations. D. operating the price mechanism.