Because special interest groups tend to favor transfer policies rather than economic growth policies, many economists believe that these special interest groups help to improve economic efficiency.

The prices of most services have risen much faster than inflation in recent years because

a. wages and salaries of service providers have risen much faster than inflation. b. wages and salaries of service providers have risen but their productivity has not. c. the productivity of service providers has risen dramatically. d. the demand for services has risen.

Which of the following will not cause the demand for product K to change?

A. A change in the price of close-substitute product J. B. An increase in incomes of buyers of product K. C. A change in the price of product K. D. A change in consumer tastes for product K.