In the Table Given Below Y Represent the Aggregate Expenditure

question 38

Multiple Choice

In the table given below Y represent the aggregate expenditure of the economy on C = consumption, I = investment, G = government projects, and X = net exports.
Table 9.3
$\begin{array}{c}\text { Aggregate Expenditures }\\\begin{array}{|c|c|c|c|c|}\hline \mathbf{Y} & \mathbf{C} & \mathbf{I} & \mathbf{G} & \mathbf{X} \\\hline \$ 0 & \$ 50 & \$ 75 & \$ 150 & \$ 40 \\\hline \$ 150 & \$ 125 & \$ 75 & \$ 150 & \$ 10 \\\hline \$ 300 & \$ 200 & \$ 75 & \$ 150 & -\$ 20 \\\hline \$ 450 & \$ 275 & \$ 75 & \$ 150 & -\$ 50 \\\hline \$ 600 & \$ 350 & \$ 75 & \$ 150 & -\$ 80 \\\hline\end{array}\end{array}$
-Refer to Table 9.3. Calculate the marginal propensity to consume in the economy.

• A) 0.25
• B) 0.50
• C) 0.75
• D) 0.80
• E) 1.25

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Definitions:

Capitalism

An economic system based on the laws of free market competition, privatization of the means of production, and production for profit.

Privatization

The process of transferring an enterprise or industry from the public sector to the private sector.

Means of Production

The resources and tools used to produce goods and services, including land, labor, and capital, a concept central to Marxist theory.

Agricultural Revolution

The social and economic changes, including population increases, that followed from the domestication of plants and animals and the gradually increasing efficiency of food production.