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Brut [27]
3 years ago
6

Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy

or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) growth by _________________. This type of analysis is used to show that special interest groups tend press government for _____________ instead of ________________.
Business
1 answer:
Olin [163]3 years ago
6 0

Answer:

(A) $500 million

(B) This type of analysis is used to show that Special Interest Groups tend to press the government for TRANSFERS instead of ECONOMIC GROWTH.

Explanation:

1/10,000 of the real GDP is = $50,000

RGDP = 50,000 ÷ 1/10,000

RGDP = 50,000 × 10,000 = $500,000,000

If special interest group Q would have to be indifferent (not care which policy is applied at the given time) between the 2 policies, then the economic growth policy would have to increase the size of the RGDP (the economic pie) by an amount sufficient enough for them to get their net benefit of $50,000.

The RGDP figure above ($500 million) is the amount by which RGDP (real gross domestic product) should grow, if Group Q will still get their net benefit when only the economic growth policy (EGP) is applied.

In this case, the EGP applied in place of the TP (transfer policy) would still fetch Group Q the minimum net benefit of $50,000

(B) This type of analysis is used to show that Special Interest Groups tend to press the government (policy makers and enforcers) for TRANSFERS instead of ECONOMIC GROWTH.

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mylen [45]

Answer:

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Explanation:

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Add: Depreciation expense<u> $42,000.00</u>

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Payback period = Initial investment / Annual cash inflows

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= 3.5 years

5 0
3 years ago
If a CobbDouglas production function has alpha​ = 0.34 and beta​ = 0.42, then a​ 1% increase in inputs results in a​ ________ ch
vampirchik [111]

Answer:

0.76%

Explanation:

Firstly we write out the production function to be

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So if we have inputs that are increased by 1%, we will now have a new production function which is

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We write this in terms of growth rate

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This gives us the Growth rate of Y = 0.34 x 1% + 0.42 x 1%

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6 0
2 years ago
The application of marketing strategies and practices not for profit but rather to change or create behaviors that have a benefi
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Answer:

Nonprofit Organization.

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Based on the information provided within the question it can be said that this seems to be an example of upward distortion. In the context of business, this refers to when a lower employee fails to, or is hesitant to communicate negative information to his/her superiors due to the consequences. Which is what Enrique is doing in this scenario.

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Answer:

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very small pp

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3 years ago
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