(Table 1: Economic Data for Macroland) Table 1 Shows Economic

question 27

Multiple Choice

(Table 1: Economic Data for Macroland) Table 1 shows economic data for Macroland. Assume that Macroland is not involved in any international trade. Use the data in Table 1 to determine the marginal propensity to consume in Macroland.
$\begin{array}{c}\hline \text { Table 1. Economic Data for Macroland }\\\begin{array}{|l|l|l|l|l|}\hline {\text { Income }} & {\begin{array}{c}\text { Consumption } \\\text { Spending }\end{array}} & \begin{array}{c}\text { Government } \\\text { Spending }\end{array} & \begin{array}{c}\text { Investment } \\\text { Spending }\end{array} & \begin{array}{c}\text { Aggregate } \\\text { Expenditures }\end{array} \\\hline \$ 0 & \$ 50 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 200 \text { billion } \\\hline \$ 100 \text { billion } & \$ 120 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 270 \text { billion } \\\hline \$ 200 \text { billion } & \$ 190 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 340 \text { billion } \\\hline \$ 300 \text { billion } & \$ 260 \text { billion } & \$ 100 \text { billion } & \$ 50 \text { billion } & \$ 410 \text { billion }\\\hline\end{array}\end{array}$

• A) 1.75
• B) .75
• C) .7
• D) .25

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Definitions:

Wealth

An abundance of valuable financial assets, resources, or property owned by an individual, corporation, or country.

Act Utilitarianism

A theory of ethics which requires that individuals examine all the potential actions in each situation and choose the action that yields the greatest amount of pleasure over pain for all involved.

Ethical Theory

A system of principles designed to guide decision-making by determining what is morally right and wrong.

Deception

The act of misleading or tricking someone, often involving misrepresentation or withholding of the truth.