The existence of dual economies support the argument for _____

Which of the government policies below is not likely to encourage per capita economic growth?

a. High taxes on companies that spend a lot on capital formation b. The use of tax revenues for investment and capital formation c. Special subsidies for capital-intensive forms of production d. Promotion of education and training programs for workers

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