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Principles of Macroeconomics 12th

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Principles of Macroeconomics, 12e (Case)
Chapter 8 Aggregate Expenditure and Equilibrium Output

8.1 The Keynesian Theory of Consumption

1) The MPC is
A) the change in consumption divided by the change in income.
B) consumption divided by income.
C) the change in consumption divided by the change in saving.
D) the change in saving divided by the change in income.
Answer: A
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-6

2) The MPS is
A) the change in saving divided by the change in income.
B) 1 + MPC.
C) income divided by saving.
D) total saving divided by total income.
Answer: A
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-6

3) Saving equals
A) Y - C.
B) Y - planned I.
C) Y - actual I.
D) inventory changes.
Answer: A
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-8

4) If the MPS is 0.60, MPC


A) is 1.60.
B) is 0.40.
C) is 0.30.
D) cannot be determined by the given information.
Answer: B
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

1
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5) If you earn additional $500 in disposable income one week for painting your neighbor's house,
A) the total of your consumption and saving will increase by more than $500.
B) the total of your consumption and saving will increase by $500.
C) the total of your consumption and saving will increase by less than $500.
D) your consumption will increase by more than $500, even if your MPS is 0.1.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

6) If Logan received a $2,500 bonus and his MPS is 0.20, his consumption rises by $________ and his
saving rises by $________.
A) 500; 100
B) 2,500; 200
C) 2,000; 500
D) 2,500; 20
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

7) Uncertainty about the future is likely to


A) increase current spending.
B) have no impact on current spending.
C) decrease current spending.
D) either increase or decrease current spending.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

8) Higher interest rates are likely to


A) have no effect on consumer spending or saving.
B) decrease consumer spending and increase consumer saving.
C) decrease both consumer spending and consumer saving.
D) increase consumer spending and decrease consumer saving.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

2
Copyright © 2017 Pearson Education, Inc.
9) Consumption is
A) positively related to household income and wealth and households' expectations about the future, but
negatively related to interest rates.
B) negatively related to household income and wealth, interest rates, and households' expectations about
the future.
C) determined only by income.
D) positively related to household income and wealth, interest rates, and households' expectations about
the future.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

10) In a closed economy with no government, aggregate expenditure is


A) consumption plus investment.
B) saving plus investment.
C) consumption plus the MPC.
D) MPC + MPS.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-8

11) If Wanda's income is reduced to zero after she loses her job, her consumption will be ________ and
her saving will be ________.
A) less than zero; less than zero
B) greater than zero; greater than zero
C) less than zero; greater than zero
D) greater than zero; less than zero
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

3
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Figure 8.1 below to answer the questions that follow.

Figure 8.1

12) Refer to Figure 8.1. The MPS for this household is ________ and the MPC is ________.
A) 0.4; 0.6
B) 0.5; 0.5
C) 0.2; 0.8
D) 0.3; 0.7
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

13) Refer to Figure 8.1. The equation for this household's saving function is
A) S = -200 + 0.8Y.
B) S = -300 + 0.25Y.
C) S = -500 + 0.5Y.
D) S = -1,000 + 0.8Y.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

4
Copyright © 2017 Pearson Education, Inc.
14) Refer to Figure 8.1. At income level $1,500, this household's saving is ________ than (to) zero and this
household's consumption is ________ zero.
A) less than; greater than
B) equal to ; equal to
C) greater than; less than
D) greater than; greater than
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

15) Refer to Figure 8.1. This household's consumption function is


A) C = 200 + 0.2Y.
B) C = 300 + 0.75Y.
C) C = 500 + 0.5Y.
D) C = 1,000 + 0.2Y.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

16) Refer to Figure 8.1. This household saves -$300 at an income level of
A) $400.
B) $300.
C) $250.
D) $125.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

17) Refer to Figure 8.1. This household consumes $2,000 at an income level of
A) $3,000.
B) $2,275.
C) $2,000.
D) $1,840.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

5
Copyright © 2017 Pearson Education, Inc.
18) Refer to Figure 8.1. An increase in the amount of consumption this household makes when this
household's income is zero
A) makes the consumption function steeper.
B) makes the saving function flatter.
C) shifts the consumption function downward.
D) shifts the saving function downward.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

19) Refer to Figure 8.1. An increase in the MPC


A) makes the consumption function flatter.
B) makes the saving function flatter.
C) shifts the consumption function upward.
D) shifts the saving function downward.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

20) Refer to Figure 8.1. The ________ for this household is 0.5 and the ________ is also 0.5.
A) MPC; MPS
B) MPC; consumption function
C) MPS; saving function
D) consumption function; saving function
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

21) Refer to Figure 8.1. [-500 + 0.5Y] is this household's


A) MPC.
B) MPS.
C) saving function.
D) consumption.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

6
Copyright © 2017 Pearson Education, Inc.
22) Refer to Figure 8.1. At income level ________, this household's saving is greater than zero and this
household's consumption is greater than zero.
A) -$200
B) $800
C) $1,000
D) $1,500
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

23) Refer to Figure 8.1. [500 + 0.5Y] is this household's


A) MPC.
B) MPS.
C) saving function.
D) consumption function.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

24) Refer to Figure 8.1. This household saves ________ at an income level of $400.
A) -$300
B) -$250
C) $0
D) $250
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

25) Refer to Figure 8.1. This household consumes ________ at an income level of $3,000.
A) $1,000
B) $1,450
C) $2,000
D) $3,500
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

7
Copyright © 2017 Pearson Education, Inc.
26) Refer to Figure 8.1. A(n) ________ in the amount of ________ this household makes when this
household's income is zero shifts the saving function downward.
A) decrease; consumption
B) decrease; spending
C) increase; saving
D) increase; consumption
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

27) Refer to Figure 8.1. A decrease in the MPS


A) makes the consumption function flatter.
B) makes the saving function flatter.
C) shifts the consumption function upward.
D) shifts the saving function downward.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

8
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Figure 8.2 below to answer the questions that follow.

Figure 8.2

28) Refer to Figure 8.2. The line segment BD represents Jerry's


A) consumption when income equals Y1.
B) saving when income equals zero.
C) saving when income is Y1.
D) consumption when income equals zero.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

29) Refer to Figure 8.2. Jerry's consumption equals his income at Point
A) A.
B) B.
C) C.
D) D.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

30) Refer to Figure 8.2. Jerry's saving equals zero at income level
A) zero.
B) Y1.
C) Y2.
D) Y2 - Y1.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

9
Copyright © 2017 Pearson Education, Inc.
31) Refer to Figure 8.2. Along the line segment AC, Jerry's
A) consumption equals his income.
B) consumption is greater than his income.
C) saving is zero.
D) saving is positive.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

32) Refer to Figure 8.2. Along the segment AB, Jerry's


A) consumption is less than his income.
B) saving is positive.
C) consumption equals his income.
D) saving is negative.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

33) Refer to Figure 8.2. Positive saving occurs along the line segment
A) BC.
B) DC.
C) AC.
D) BA.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

34) Refer to Figure 8.2. An increase in Jerry's income is represented by


A) an upward shift in Jerry's consumption function.
B) an increase in the slope of Jerry's consumption function.
C) a movement from Point B to A.
D) none of the above
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

10
Copyright © 2017 Pearson Education, Inc.
35) Refer to Figure 8.2. Suppose Jerry's MPC increases, and the vertical intercept of the consumption
function does not change. At income Y1, Jerry's
A) consumption will be greater than his income.
B) consumption will be less than his income.
C) saving will be zero.
D) all of the above
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

36) Refer to Figure 8.2. The line segment ________ represents Jerry's consumption when income equals
zero.
A) BA
B) DA
C) BC
D) BD
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

37) Refer to Figure 8.2. Jerry's ________ equals his ________ at Point A.
A) consumption; saving
B) consumption; income
C) saving; income
D) all of the above
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

38) Refer to Figure 8.2. Jerry's ________ equals ________ at income level Y1.
A) consumption; saving
B) saving; zero
C) consumption; investment
D) consumption; zero
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

11
Copyright © 2017 Pearson Education, Inc.
39) Refer to Figure 8.2. Jerry's saving is positive along the line segment
A) BD.
B) DA.
C) BA.
D) AC.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

40) Refer to Figure 8.2. Jerry's saving is negative along the line segment
A) AY1.
B) AB.
C) CY2.
D) AC.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

41) Refer to Figure 8.2. Negative saving is represented by the area


A) DBCY2.
B) DBAY1.
C) DBAD.
D) ACY2Y1.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

42) Refer to Figure 8.2. A decrease in Jerry's income is represented by


A) an upward shift in Jerry's consumption function.
B) a decrease in the slope of Jerry's consumption function.
C) a movement from Point B to A.
D) a movement from Point C to A.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

12
Copyright © 2017 Pearson Education, Inc.
43) Refer to Figure 8.2. Suppose Jerry's MPC decreases. At income Y1, Jerry's
A) consumption will be greater than his income.
B) consumption will be less than his income.
C) saving will be zero.
D) all of the above
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

44) The fraction of a change in income that is consumed or spent is called


A) the marginal propensity of income.
B) the marginal propensity to save.
C) the marginal propensity to consume.
D) average consumption.
Answer: C
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-6

45) If you save $80 when you experience a $400 rise in your income,
A) your MPS is 0.25.
B) your MPC is 0.80.
C) your MPC is 0.85.
D) your MPS is 0.40.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

46) If consumption is $30,000 when income is $35,000, and consumption increases to $36,000 when
income increases to $43,000, the MPC is
A) 0.65.
B) 0.75.
C) 0.80.
D) 0.95.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

13
Copyright © 2017 Pearson Education, Inc.
47) If consumption is $10,000 when income is $10,000, and consumption increases to $11,000 when
income increases to $12,000, the MPS is
A) 0.10.
B) 0.25.
C) 0.50.
D) 0.90.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

48) Suppose consumption is $5,000 when income is $8,000 and the MPC equals 0.9. When income
increases to $10,000, consumption is
A) $2,700.
B) $4,500.
C) $6,800.
D) $7,200.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

49) Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When income increases to
$12,000, saving is
A) $1,680.
B) $1,800.
C) $2,200.
D) $3,000.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

50) Suppose consumption is $60,000 when income is $90,000 and the MPS equals 0.25. When income
increases to $100,000, consumption is
A) $90,250.
B) $85,000.
C) $70,000.
D) $67,500.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6
14
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51) If the MPS is 0.22, the MPC is
A) -0.22.
B) 0.66.
C) 0.78.
D) 1.22.
Answer: C
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

52) If the MPS is 0.05, the MPC is


A) -0.05.
B) 0.95.
C) 1.05.
D) 2.25.
Answer: B
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

53) If the consumption function is of the form [C = 80 + 0.4Y], the MPS equals
A) -0.6.
B) -0.4.
C) 0.4.
D) 0.6.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

54) If the saving function is of the form [S = -20 + 0.3Y], consumption at an income level of 200 is
A) 80.
B) 120.
C) 160.
D) 180.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

15
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55) If Lily's consumption function is of the form [C = 100 + 0.8Y], her saving equals zero at an income level
of
A) 180.
B) 500.
C) 800.
D) cannot be determined from the given information
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

56) If Zander's saving function is of the form [S = -150 + 0.5Y], his consumption equals his income at an
income level of
A) 150.
B) 225.
C) 300.
D) 1,500.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

Refer to the information provided in Table 8.1 below to answer the questions that follow.

Table 8.1

57) Refer to Table 8.1. The equation for the aggregate consumption function is
A) C = 80 + 0.95Y.
B) C = 80 + 0.9Y.
C) C = 80 + 0.75Y.
D) C = -80 + 0.45Y.
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

16
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58) Refer to Table 8.1. Society's MPC is
A) 0.95.
B) 0.90.
C) 0.80.
D) 0.05.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

59) Refer to Table 8.1. Society's MPS is


A) 0.05.
B) 0.10.
C) 0.20.
D) 0.95.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

60) Refer to Table 8.1. At an aggregate income level of $100, aggregate saving would be
A) -$70.
B) -$30.
C) $50.
D) $70.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

61) Refer to Table 8.1. Assuming society's MPC is constant at an aggregate of income of $300, aggregate
consumption would be
A) $425.
B) $350.
C) $325.
D) $305.
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

17
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Table 8.2 below to answer the questions that follow.

Table 8.2

62) Refer to Table 8.2. The equation for the aggregate saving function is
A) S = -100 + 0.15Y.
B) S = -100 + 0.1Y.
C) S = -150 + 0.2Y.
D) S = -150 + 0.85Y.
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

63) Refer to Table 8.2. Society's MPC is


A) 0.1.
B) 0.2.
C) 0.8.
D) 0.9.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

64) Refer to Table 8.2. Society's MPS is


A) 0.1.
B) 0.2.
C) 0.3.
D) 0.9.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

18
Copyright © 2017 Pearson Education, Inc.
65) Refer to Table 8.2. Assuming society's MPC is constant, at an aggregate income level of $900,
aggregate consumption would be
A) $665.
B) $910.
C) $1,200.
D) $1,750.
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

66) Refer to Table 8.2. Assuming society's MPC is constant, at an aggregate income of $1,200 aggregate
saving would be
A) $0.
B) $20.
C) $55.
D) $150.
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

19
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Figure 8.3 below to answer the questions that follow.

Figure 8.3

67) Refer to Figure 8.3. The equation for the aggregate consumption function is
A) C = 140 + 0.5Y.
B) C = 60 + 0.7Y.
C) C = 80 + 0.6Y.
D) C = 60 + 0.4Y.
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

68) Refer to Figure 8.3. The equation for the aggregate saving function is
A) S = -60 + 0.3Y.
B) S = -200 + 0.6Y.
C) S = -140 + 0.5Y.
D) S = -80 + 0.4Y.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

20
Copyright © 2017 Pearson Education, Inc.
69) Refer to Figure 8.3. In this economy, aggregate saving will be zero if income is
A) $100 billion.
B) $200 billion.
C) $300 billion.
D) $400 billion.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

70) Refer to Figure 8.3. For this society, aggregate saving is positive if aggregate income is
A) above zero.
B) between $0 and $150 billion.
C) equal to $200 billion.
D) above $200 billion.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

71) Refer to Figure 8.3. If aggregate income is $1,000 billion, then in this society aggregate saving is
________ billion.
A) $240
B) $300
C) $320
D) $550
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

72) Refer to Figure 8.3. Which of the following statements is false?


A) Aggregate saving is negative for all income levels below $400 billion.
B) For all aggregate income levels above $200 billion, aggregate consumption is less than aggregate
income.
C) If consumption is the only expenditure, this economy would be in equilibrium at an aggregate income
level of $200 billion.
D) Saving is negative at all income levels below $200 billion.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

21
Copyright © 2017 Pearson Education, Inc.
73) Refer to Figure 8.3. [60 + 0.7Y] is this society's
A) MPC.
B) MPS.
C) saving function.
D) consumption function.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

74) Refer to Figure 8.3. [-60 + 0.3Y] is this society's


A) MPC.
B) MPS.
C) saving function.
D) consumption function.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

75) Refer to Figure 8.3. In this economy, if income is $200 aggregate saving will be
A) $0.
B) $130.
C) $200.
D) $270.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

76) Refer to Figure 8.3. For this society, aggregate saving is ________ if aggregate income is above $200.
A) negative
B) positive
C) zero
D) equal to aggregate consumption
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

22
Copyright © 2017 Pearson Education, Inc.
77) Refer to Figure 8.3. Aggregate saving is $240 if aggregate income is
A) $300.
B) $500.
C) $800.
D) $1,000.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

78) Refer to Figure 8.3. Which of the following statements is true?


A) Aggregate saving is negative for all income levels below $400.
B) For all aggregate income levels above $200, aggregate consumption is greater than aggregate income.
C) If consumption is the only expenditure, this economy would be in equilibrium at an aggregate income
level of $300.
D) Saving is negative at all income levels below $200.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

23
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Figure 8.4 below to answer the questions that follow.

Figure 8.4

79) Refer to Figure 8.4. The aggregate consumption functions C1 and C2


A) have the same MPC values.
B) imply different MPS values.
C) have the same autonomous consumption values.
D) have the same break-even values.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

80) Refer to Figure 8.4. Which consumption function has the largest MPC?
A) C1
B) C2
C) C3
D) cannot be determined from the figure
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

24
Copyright © 2017 Pearson Education, Inc.
81) Refer to Figure 8.4. Suppose the consumption function for C1 = 10 + 0.8Y, the consumption function
that best fits C2 is
A) C2 = 20 + 0.8Y.
B) C2 = 10 + 0.4Y.
C) C2 = 40 + 0.5Y.
D) C2 = 20 + 0.1Y.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

82) Refer to Figure 8.4. Suppose the consumption function for C1 = 20 + 0.5Y, the consumption function
that best fits C3 is
A) C3 = 20 + 0.8Y.
B) C3 = 20 + 0.4Y.
C) C3 = 40 + 0.5Y.
D) C3 = 40 + 0.4Y.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

83) Refer to Figure 8.4. If income is Y1, aggregate consumption is the greatest when the aggregate
consumption function is
A) C3.
B) C2.
C) C1.
D) cannot be determined from the figure
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

25
Copyright © 2017 Pearson Education, Inc.
84) Refer to Figure 8.4. If income is Y2
A) the society's saving is negative along C1, C2, and C3.
B) the society's consumption is equal along C2 and C3.
C) the society's saving is positive along C2 and C3.
D) the society's savings is negative along C1.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

85) Refer to Figure 8.4. The aggregate consumption functions C2 and C3


A) have the same MPC.
B) imply the same MPS.
C) differ in terms of the amount of consumption when income is zero.
D) all of the above
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

86) Refer to Figure 8.4. Which consumption function implies the smallest MPS?
A) C1
B) C2
C) C3
D) cannot be determined from the figure
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

87) Refer to Figure 8.4. Suppose the consumption function for C1 is [C1 = 20 + 0.75Y]. The consumption
function that best fits C2 is
A) C2 = 10 + 0.5Y.
B) C2 = 20 + 0.25Y.
C) C2 = 10 + 0.4Y.
D) C2 = 40 + 0.75Y.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

26
Copyright © 2017 Pearson Education, Inc.
88) Refer to Figure 8.4. Suppose the consumption function for C1 is [C1 = 15 + 0.4Y]. The consumption
function that best fits C3 is
A) C3 = 20 + 0.8Y.
B) C3 = 30 + 0.25Y.
C) C3 = 15 + 0.75Y.
D) C3 = 20 + 0.4Y.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

89) Refer to Figure 8.4. If income is Y1, aggregate consumption is the smallest when the aggregate
consumption function is
A) C3.
B) C2.
C) C1.
D) cannot be determined from the figure
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

90) Refer to Figure 8.4. The society's consumption is equal along C2 and C3 if
A) income is Y1.
B) income is Y2.
C) saving is positive.
D) saving is negative.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

91) If the consumption function is below the 45-degree line,


A) consumption is less than income and saving is positive.
B) consumption is less than income and saving is negative.
C) consumption exceeds income and saving is positive.
D) consumption exceeds income and saving is negative.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6
27
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Figure 8.5 below to answer the questions that follow.

Figure 8.5

92) Refer to Figure 8.5. The MPS for this saving function is
A) 5.
B) 4.
C) 0.5.
D) 0.25.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

93) Refer to Figure 8.5. If aggregate income is $400 billion, aggregate saving is ________ billion.
A) -$300
B) -$100
C) $0
D) $500
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

94) Refer to Figure 8.5. If aggregate income is $900 billion, aggregate consumption
A) is $25 billion.
B) is $800 billion.
C) is $875 billion.
D) cannot be determined from this information.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

28
Copyright © 2017 Pearson Education, Inc.
95) Refer to Figure 8.5. In this graph, 0.25 represents this society's
A) MPC.
B) MPS.
C) saving function.
D) consumption function.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

96) Refer to Figure 8.5. Aggregate saving is -100 billion when aggregate income is ________ billion.
A) -$50
B) $400
C) $800
D) $900
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

97) Refer to Figure 8.5. Aggregate consumption is $875 billion when aggregate income is ________ billion.
A) < $800
B) $800
C) $900
D) > $900
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

98) Refer to Figure 8.5. If aggregate consumption is the only expenditure in this society, at an income level
of $800 billion
A) saving is zero.
B) consumption equals income.
C) the economy is in equilibrium.
D) all of the above
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

29
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Figure 8.6 below to answer the questions that follow.

Figure 8.6

99) Refer to Figure 8.6. The MPS for this saving function is
A) 0.4.
B) 0.25.
C) 0.2.
D) 0.1.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

100) Refer to Figure 8.6. If aggregate income is $800, aggregate saving is


A) -$100.
B) -$20.
C) $20.
D) $40.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

101) Refer to Figure 8.6. If aggregate income is $1,000, aggregate consumption is


A) $850.
B) $910.
C) $920.
D) $960.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

30
Copyright © 2017 Pearson Education, Inc.
102) Refer to Figure 8.6. On this graph, 0.1 represents this society's
A) MPC.
B) MPS.
C) saving function.
D) consumption function.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

103) Refer to Figure 8.6. Aggregate saving is 20 when aggregate income is


A) $600.
B) $660.
C) $800.
D) $850.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

104) Refer to Figure 8.6. Aggregate consumption is 960 when aggregate income is
A) $800.
B) $950.
C) $1,000.
D) $1,125.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

105) The change in consumption divided by the change in income is equal to


A) the MPC.
B) the MPS.
C) 1 - MPC.
D) MPC + MPS.
Answer: A
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-6

31
Copyright © 2017 Pearson Education, Inc.
106) The change in saving divided by the change in income is equal to
A) the MPC.
B) the MPS.
C) 1 - MPS.
D) MPC + MPS.
Answer: B
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-6

107) [Yd - C] equals


A) spending.
B) the MPC.
C) saving.
D) the MPS.
Answer: C
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-8

108) If the MPS is 0.10, MPC is


A) 1.10.
B) 1.00.
C) 0.90.
D) 0.80.
Answer: C
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

109) If you earn an additional $200 in disposable income one week for feeding your neighbor's ferret,
A) the total of your consumption and saving will increase by more than $200.
B) the total of your consumption and saving will increase by $200.
C) the total of your consumption and saving will increase by less than $200.
D) your consumption will increase by more than $200, even if your MPS is 0.1.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

32
Copyright © 2017 Pearson Education, Inc.
110) If Earl received an $800 bonus and his MPS is 0.25, his consumption rises by $________ and his
saving rises by $________.
A) 825; 125
B) 600; 200
C) 400; 250
D) 800; 250
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-8

111) Uncertainty about the future is likely to


A) decrease current saving.
B) have no impact on current saving.
C) increase current saving.
D) either increase or decrease current saving.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

112) Lower interest rates are likely to


A) have no effect on consumer spending or saving.
B) decrease consumer spending and increase consumer saving.
C) decrease both consumer spending and consumer saving.
D) increase consumer spending and decrease consumer saving.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

113) Household income is ________ related to consumption and ________ related to household saving.
A) positively; positively
B) positively; negatively
C) negatively; positively
D) negatively; negatively
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

33
Copyright © 2017 Pearson Education, Inc.
114) In a closed economy with no government, ________ is consumption plus investment.
A) saving
B) national income
C) aggregate expenditures
D) real spending
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-8

115) If Corinne's income is reduced to zero after she loses her job, her ________ will be greater than zero
and her ________ will be less than zero.
A) taxes; consumption
B) saving; investment
C) consumption; expenses
D) consumption; saving
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

116) The marginal propensity to consume is


A) consumption times income.
B) the amount of consumption at a specific level of income.
C) a change in saving divided by a change in consumption.
D) the fraction of a change in income that is consumed or spent.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-6

117) If you save $20 when you experience a $80 rise in your income
A) your MPS is 0.4.
B) your MPC is 0.75.
C) your MPC is 0.8.
D) your MPS is 0.8.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

34
Copyright © 2017 Pearson Education, Inc.
118) If consumption is $60,000 when income is $80,000, and consumption increases to $68,000 when
income increases to $90,000, the MPC is
A) 0.2.
B) 0.4.
C) 0.6.
D) 0.8.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

119) If consumption is $13,000 when income is $12,000, and consumption increases to $15,000 when
income increases to $15,000, the MPS is
A) -0.15.
B) 0.
C) 0.33.
D) 0.40.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

120) Suppose consumption is $20,000 when income is $32,000 and the MPC equals 0.8. When income
increases to $40,000, consumption is
A) $26.400.
B) $28,000.
C) $32,000.
D) $72,000.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

121) Suppose saving is $1,000 when income is $10,000 and the MPC equals 0.9. When income increases to
$15,000, saving is
A) $1,500.
B) $1,400.
C) $900.
D) $500.
Answer: A
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6
35
Copyright © 2017 Pearson Education, Inc.
122) Suppose consumption is $7,500 when income is $4,000 and the MPS equals 0.4. When income
increases to $6,000, consumption is
A) $8,050.
B) $8,300.
C) $8,700.
D) $9,500.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

123) If the MPS is 0.3, the MPC is


A) -0.3.
B) 0.7.
C) 1.
D) 1.3.
Answer: B
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

124) If the MPS is 0.20, the MPC is


A) -0.20.
B) 0.40.
C) 0.80.
D) 1.20.
Answer: C
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

125) If the consumption function is of the form [C = 60 + 0.9Y], the MPS equals
A) -0.9.
B) 0.1.
C) 0.6.
D) 0.9.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

36
Copyright © 2017 Pearson Education, Inc.
126) If the saving function is of the form [S = -15 + 0.4Y], consumption at an income level of 200 is
A) 80.
B) 105.
C) 135.
D) 185.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

127) If Teena's consumption function is of the form [C = 200 + 0.75Y], her saving equals zero at an income
level of
A) 150.
B) 675.
C) 800.
D) 1,500.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

128) If Zach's saving function is of the form [S = -300 + 0.2Y], his consumption equals his income at an
income level of
A) 300.
B) 600.
C) 1,040.
D) 1,500.
Answer: D
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

37
Copyright © 2017 Pearson Education, Inc.
Refer to the information provided in Table 8.3 below to answer the questions that follow.

Table 8.3

129) Refer to Table 8.3. The equation for the aggregate consumption function is
A) C = 200 + 0.3Y.
B) C = 200 + 0.75Y.
C) C = 200 + 0.8Y.
D) C = -200 + 0.2Y.
Answer: B
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

130) Refer to Table 8.3. Society's MPC is


A) 0.2.
B) 0.3.
C) 0.75.
D) 0.8.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

131) Refer to Table 8.3. Society's MPS is


A) 0.2.
B) 0.25.
C) 0.7.
D) 0.8.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

38
Copyright © 2017 Pearson Education, Inc.
132) Refer to Table 8.3. At an aggregate income level of $300, aggregate saving would be
A) -$125.
B) $100.
C) $125.
D) $175.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

133) Refer to Table 8.3. Assuming society's MPC is constant at an aggregate of income of $2,000, aggregate
consumption would be
A) $1,500.
B) $1,600.
C) $1,700.
D) $1,800.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

Refer to the information provided in Table 8.4 below to answer the questions that follow.

Table 8.4

134) Refer to Table 8.4. The equation for the aggregate saving function is
A) S = -100 + 0.75Y.
B) S = -200 + 0.15Y.
C) S = -200 + 0.25Y.
D) S = -100 + 0.2Y.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

39
Copyright © 2017 Pearson Education, Inc.
135) Refer to Table 8.4. Society's MPC is
A) 0.1.
B) 0.2.
C) 0.75.
D) 0.9.
Answer: C
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

136) Refer to Table 8.4. Society's MPS is


A) 0.1.
B) 0.25.
C) 0.8.
D) 0.9.
Answer: B
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

137) Refer to Table 8.4. Assuming society's MPC is constant, at an aggregate income level of $1,200,
aggregate consumption would be
A) $2,000.
B) $1,400.
C) $1,100.
D) $950.
Answer: C
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

138) Refer to Table 8.4. Assuming society's MPC is constant, at an aggregate income of $1,000 aggregate
saving would be
A) $50.
B) $150.
C) $225.
D) $425.
Answer: A
Diff: 3
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

40
Copyright © 2017 Pearson Education, Inc.
139) If the consumption function is above the 45-degree line
A) consumption is less than income and saving is positive.
B) consumption is less than income and saving is negative.
C) consumption exceeds income and saving is positive.
D) consumption exceeds income and saving is negative.
Answer: D
Diff: 2
Topic: The Keynesian Theory of Consumption
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

140) As interest rates fall, spending decreases.


Answer: FALSE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

141) An expected permanent tax increase is likely to increase current spending.


Answer: FALSE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

142) The marginal propensity to consume is the change in consumption per change in income.
Answer: TRUE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Definition
Learning Outcome: Macro-6

143) If the marginal propensity to consume is 0.8, the marginal propensity to save is 8.
Answer: FALSE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

144) As interest rates rise, spending decreases.


Answer: TRUE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

41
Copyright © 2017 Pearson Education, Inc.
145) Uncertainty about the future is likely to decrease current spending.
Answer: TRUE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

146) The marginal propensity to consume must always be larger than the marginal propensity to save.
Answer: FALSE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

147) If the marginal propensity to consume is 0.5, the marginal propensity to save is 0.5.
Answer: TRUE
Diff: 1
Topic: The Keynesian Theory of Consumption
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

8.2 Planned Investment (I) versus Actual Investment

1) The Tiny Tots Toy Company manufactures only sleds. In 2016 Tiny Tots manufactured 10,000 sleds,
but sold only 8,000 sleds. In 2016 Tiny Tots' change in inventory was
A) -2,000 sleds.
B) 1,000 sleds.
C) 2,000 sleds.
D) 3,000 sleds.
Answer: C
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

2) The Jackson Tool Company manufactures only tools. In 2016 Jackson Tools manufactured 20,000 tools,
but sold 21,000 tools. In 2016 Jackson Tools' change in inventory was
A) -2,000 tools.
B) -1,000 tools.
C) 1,000 tools.
D) 3,000 tools.
Answer: B
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-6

42
Copyright © 2017 Pearson Education, Inc.
3) Which of the following is not considered investment?
A) the acquisition of capital goods
B) the purchase of government bonds
C) the increase in planned inventories
D) the construction of a new factory
Answer: B
Diff: 1
Topic: Planned Investment (I) versus Actual Investment
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

4) Which of the following is an investment?


A) the purchase of a new printing press by a business
B) the purchase of a corporate bond by a household
C) the purchase of a share of stock by a household
D) a leveraged buyout of one corporation by another
Answer: A
Diff: 1
Topic: Planned Investment (I) versus Actual Investment
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-6

5) Over which component of investment do firms have the least amount of control?
A) purchases of new equipment
B) construction of new factories
C) changes in inventories
D) building new machines
Answer: C
Diff: 1
Topic: Planned Investment (I) versus Actual Investment
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-8

6) Assume that in Scandia, planned investment is $80 billion but actual investment is $60 billion.
Unplanned inventory investment is
A) -$20 billion.
B) -$10 billion.
C) $70 billion.
D) $140 billion.
Answer: A
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

43
Copyright © 2017 Pearson Education, Inc.
7) Assume that in Jabara, planned investment is $30 billion, but actual investment is $45 billion.
Unplanned inventory investment is
A) -$75 billion.
B) -$15 billion.
C) $15 billion.
D) $75 billion.
Answer: C
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

8) If unplanned business investment is $20 million and planned investment is $20 million, then actual
investment is
A) -$20 million.
B) $20 million.
C) $40 million.
D) $200 million.
Answer: C
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

9) In 2016 Happyland's planned investment was $90 billion and its actual investment was $140 billion. In
2016 Happyland's unplanned inventory change was
A) -$115 billion.
B) -$50 billion.
C) $50 billion.
D) $230 billion.
Answer: C
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

10) If planned investment exceeds actual investment,


A) there will be an accumulation of inventories.
B) there will be no change in inventories.
C) there will be a decline in inventories.
D) none of the above
Answer: C
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-8

44
Copyright © 2017 Pearson Education, Inc.
11) If Inventory investment is higher than firms planned,
A) actual and planned investment are equal.
B) actual investment is less than planned investment.
C) actual investment is greater than planned investment.
D) actual investment must be negative.
Answer: C
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Macro-8

Refer to the information provided in Figure 8.7 below to answer the questions that follow.

Figure 8.7

12) Refer to Figure 8.7. In Azora, planned investment does not vary with income. Azora's planned
investment function is represented by
A) Panel A.
B) Panel B.
C) Panel C.
D) Panel D.
Answer: B
Diff: 2
Topic: Planned Investment (I) versus Actual Investment
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Macro-8

45
Copyright © 2017 Pearson Education, Inc.
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of The conquest of
cancer
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and most other parts of the world at no cost and with almost no
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you are located before using this eBook.

Title: The conquest of cancer

Author: H. W. S. Wright

Author of introduction, etc.: F. G. Crookshank

Release date: October 25, 2023 [eBook #71960]

Language: English

Original publication: London: Kegan Paul, Trench, Trubner & Co,


1925

Credits: Tim Lindell, Donald Cummings and the Online Distributed


Proofreading Team at https://www.pgdp.net (This book was
produced from images made available by the HathiTrust
Digital Library.)

*** START OF THE PROJECT GUTENBERG EBOOK THE


CONQUEST OF CANCER ***
THE CONQUEST OF CANCER
TO-DAY AND TO-MORROW
A List of the Contents of
this Series will be found
at the end of this volume
THE
CONQUEST OF CANCER
BY

H. W. S. WRIGHT, M.S., F.R.C.S.

With an Introduction by

F. G. CROOKSHANK, M.D., F.R.C.P.

“Malum immedicabile cancer.” (Ovid, Met. x, 127)

London
KEGAN PAUL, TRENCH, TRUBNER & CO., LTD.
New York: E. P. DUTTON & CO.
1925
Printed in Great Britain by
F. Robinson & Co., at The Library Press, Lowestoft
THE CONQUEST OF CANCER

INTRODUCTION
The phrase “Conquest of Cancer”, though perhaps emotive rather
than scientific, nevertheless implies the existence of a very real and
important problem. And this problem, it may be confidently affirmed,
is one that will never be solved, in action, by the efforts of the
medical profession alone. Whatever be the future, and as yet
reserved, revelations of Science, and whatever the further
developments of Art, cancer will not cease to exact its toll unless
medical science and art obtain the intelligent co-operation of an
instructed public. It is for this reason that it has been thought useful
to place before the public this little book, written by a practical
surgeon who has given special attention to the problems of the
laboratory. The book itself, which not only states in simple language
the essential points that should be comprehended by the public, but
puts forward a plan for concerted action, is based upon one of a
series of University Extension lectures given during the winter of
1922–23, at the Shantung Christian University, Tsinan, China, where
Mr Wright is actively engaged in the Surgical Department of the
School of Medicine.

The task of prefacing this essay by some words of introduction has


devolved upon the present writer, not because he either has, or
desires to present, any claim to speak with special authority
concerning Cancer, but by reason of a close personal and
professional friendship that has led him to appreciate very warmly
the knowledge, the sincerity, and the disinterestedness that
characterize Mr Wright’s thought and work. And he is confident that
we may accept what has been said about Cancer at Shantung as an
honest and candid attempt to instruct and to construct, in
detachment from the pribbles and prabbles that have sometimes
confused discussion nearer home.
Now, although the public has the undoubted right to demand
information on this subject, and although, as has been suggested,
without admission of the public to the arena of discussion little can
be done to diminish the present mortality from Cancer, yet is there
real difficulty in communicating knowledge, without engendering
unnecessary fear and alarm and sending the hypochondriac to those
quacks and charlatans who diagnose non-existent disease in order
that they may reap reward by announcing its cure.
Some weaker minds there will always be: so, whenever attention
is directed towards some public danger, there are those who adopt
the possible contingency as a peg on which to hang some ragged
vestment of distracted emotion or thought. Thirty years ago, the
insane feared the telephone: during the Boer War, many thought that
the “scouts were after them”; now-a-days lunatics babble of
persecution by wireless, by Bolsheviks, or even by psycho-analysts.
So, in Victorian times, the malades imaginaires who then thronged
consulting rooms spoke with bated breath of Bright’s disease: to-day,
the hysterical secretly hope to hear the blessed word “Colitis”, and
the hypochondriac as secretly dread the verdict of “Cancer”!
The task of the medical profession is to enlighten the laymen, that
their help may be enlisted, and yet to avoid alike exaggeration and
smooth sayings, false hopes and false fears. Macaulay, in a familiar
passage, once said that there is nothing more ridiculous than the
British public in one of its periodical fits of morality. At present, the
British Public is less concerned than formerly with questions of
morality, but is very much concerned with questions of health.
Perhaps it is not so much health that is sought and desired as
absence of pain and avoidance of death—which is not quite the
same thing. But, though there is nothing intrinsically ridiculous in
seeking the “advancement of morality” or the “conquest of disease”,
the one, no less than the other, may be pursued in a ridiculous and
dangerous manner.
The adoption of ill-conceived measures, designed to improve
morals or to abolish disease, may, and often does entail
consequences that are even less desirable than the evils it is hoped
to combat. While the prohibition of the consumption or sale of
alcoholic drinks may diminish certain ills, it has yet to be shewn that
the casting out of devils in the name of Beelzebub may not be
followed by possession with others yet more violent. A few years ago
we were adjured to boil all milk, lest we became poisoned by certain
microbes: we are now told that, if all milk be boiled, we are as if
deprived of vitamines, and must suffer accordingly. Instances might
be multiplied; but it should be obvious that moral and physical health
must be considered, not as physical objects, but as relations, or
states of equilibrium. Like all states of adjustment or equilibrium, they
are the result of accommodation: of poise and counterpoise. They
are not always and everywhere to be secured by the throwing of a
certain weight into one or other scalepan, or by the cutting-off so
many inches from the table-leg that seems the longest. So much, at
least, should be recognised by a seriously disturbed public told by
the daily press that so many more people than formerly now die of
cancer; that science has not yet discovered the “cause of cancer”;
but that all may be well if only we live on Nebuchadnezzar food
washed down by paraffin.
Mr Wright’s essay, combining as it does a well-balanced and
sufficient statement of what is known, with the outline of a
constructive proposition that merits careful consideration, and at
least indicates to the public the kind of way in which relative safety
may be obtained under present conditions, seems one that is
eminently suitable for what may be called general reading. The
problem is fairly and lucidly presented: the resources of surgery are
quietly and reasonably demonstrated: and the advantages are
shown of exhibiting that kind of prudence which leads the business
man to seek auditing of his accounts and the sportsman to enquire
how his score stands. But some words may perhaps be added from
the standpoint of one who is a physician, and no surgeon.
Cancer is a class name given to certain kinds of growths,
otherwise spoken of as tumours (or swellings) and ulcers, which are,
as we say, characterised by malignancy. A growth, tumour, or ulcer
which is not malignant is not called a cancer. By malignancy we
mean a tendency to spread, by local and direct extension (as
spreads a fire), or by convection, as when sparks fly from a
locomotive to a haystack. Malignant tumours or ulcers tend to recur
when removed, and, in the long run, to destroy life.
These general features are associated with certain microscopical
characters found in the tumours or ulcers, so that the nature of any
growth—whether malignant or otherwise—can be sometimes
determined by the surgeon or physician, and sometimes by the
pathologist or microscopist alone, but, as a rule, is most certainly
settled by the physician or surgeon acting in conjunction with the
microscopist. Yet, and this is important, not every cancer does
actually destroy life. Surgeons of the greatest experience, such as
the late Sir Alfred Pearce-Gould, have affirmed that undoubted
cancers do occasionally undergo spontaneous cure, or at least
arrest of growth, even in the absence of any treatment. Again, if
excision is practised early, and sufficiently extensively, recurrence
does not happen, in a certain proportion of cases. Finally, pain is no
necessary or inevitable concomitant of cancer. In many cases pain is
absent, or almost so; death may be due to mechanical
consequences entailed by the growth rather than to destruction of
any vital or sensitive part.
Now, medical men are in the habit of splitting up the group or class
of malignant growths (or “cancers”) into two subsidiary groups or
classes. One of these is named Sarcoma; the other Carcinoma.
Sarcoma is the name given to a group of malignant growths taking
origin in the structures and tissues developed from the “middle layer”
of the embryo: the growths themselves—sarcomata—partake the
nature of the tissues formed from this middle layer. The other group,
of carcinomata, consists of growths taking origin in, and partaking
the nature of one or other of the two remaining embryonic layers and
the structures developed from them.
These two layers form respectively:
(1) The skin and related structures, and
(2) The lining of the tube passing through the body; its backwaters,
out-growths and appendages.
It is these two layers which, as Mr Wright so aptly remarks, are in
direct contact with the outer world. Now, while the carcinomata
(which constitute the class of cancers chiefly discussed in this book)
in general affect people who have passed the midpoint of life—those
for whom, as Rabelais says, it is midi passé—the sarcomata, which
are less common than the carcinomata, are rather more frequently,
yet not exclusively, found in young people; in those indeed, who
have not reached life’s apogee. It is important that these facts should
be borne in mind, for generalisations founded upon the study of
carcinomata alone cannot be necessarily true in respect of all
Cancer, unless the use of the term cancer be restricted to the class
technically known as carcinoma. To say that Cancer can be
prevented if constipation is avoided is clearly misleading, when we
remember that quite young children, nay, infants, may be the subject
of sarcoma; unless of course we define cancer, as some would do,
as the kind of growth that, ex hypothesi, is prevented when
constipation is avoided. It is confusion of this sort, bred by slovenly
expression out of loose thinking, that is in great part responsible for
the present bewilderment of the public.
Another fertile source of confusion is the obscurity that attends
both the popular and the professional use of the words “cause”,
“causation”, and the like. The public demands that “the” cause of
cancer be discovered, and is prepared to pay generously that this
discovery be made. Unfortunately neither the public, nor men of
science, care overmuch to discuss what they mean by cause and
causation. This is no place in which to trench upon a province
unsuccessfully explored by Locke, by Hume, and by Kant. Yet it is of
vital importance that all doctors, scientists, and laymen should
recognise two different uses of these words.
When we speak about “the” cause of a “disease”, in a generalised
or conceptual sense, as when we say that Koch’s bacillus is “the
cause of tuberculosis”, we are really defining our concept of the
disease in terms of one correlative. We are saying that tuberculosis
is a disease in which Koch’s bacillus is invariably present. A circulus
in definiendo is only just escaped because we happen to know that,
if Koch’s bacillus is injected into certain animals, the “disease” as we
say, develops. Koch’s bacillus is the one constant correlative found
in all cases of the kind that we agree to call tuberculous, by reason
of certain clinical and pathological signs that we find. Possibly even
this statement is not to be taken as absolutely true; though it
represents what we find it convenient to say. But, when we thus
declare Koch’s bacillus to be “the” cause of tuberculosis, we have by
no means exhausted the study of all the correlations that may be
called causal in respect of particular cases. Of ten cases of
tuberculosis, each one exhibiting Koch’s bacillus, we may say that
for each particular case “the” cause of the illness is different.
Thus:
A. is tuberculous because he was gassed in France;
B. is tuberculous because he was infected by his sick wife;
C. is tuberculous because he drank tuberculous milk;
D. is tuberculous because he worked in an ill-ventilated factory;
E. because he was exposed to wet and cold; and
F. because he drank and was dirty.
The difference between a medical cause in the generalised sense,
(where cause means a defining correlative for a concept), and a
medical cause in the particular sense (when we seek to find out or
state the antecedent without which this man would not be as he is
here and now) is one of enormous importance, and one that should
be constantly borne in mind when discussion is commenced. It is
true that it involves the oldest of logical and metaphysical problems
in respect of scientific thought—the question of universals and
particulars; but that does not make it any the more easily shirked. Its
relevance to the question of cancer is this: that the proof of the
production of cancer in men or in animals under one set of
circumstances does not warrant us in saying that that set of
circumstances as known to us involves all the factors without which
cancer cannot occur. And, even if research work demonstrated that,
in every case now called cancer, some parasite or growth-form,
some irritating factor that can be isolated, does actually obtain,
unless it could be shewn that this parasite or factor is never found
except where there is cancer as we now define it, we should have to
proceed to investigate why and how cancer does not always occur
when this factor is present. Just so are we at present seeking to
explain why and how, of so many persons exposed to infection by
Koch’s bacillus, only certain ones do become diseased. If we find
that only those persons who possess a character that we may call
“X” become infected, we shall then have to say that, not Koch’s
bacillus, but the character “X” is “the” cause of tuberculosis. It is thus
that science progresses: not by making the absolute and positive
discoveries that the public is taught to expect, but by arranging and
rearranging our experiential knowledge, as such grows, in terms of
so-called laws and generalisations, that are found progressively
convenient. But such laws and generalisations are not necessarily
the one more “true” than the other, except in relation to the
knowledge that they summarize. If such considerations as these
were more frequently borne in mind, there would be less
unconscious deception, less disappointment, and greater economy
in work and thought.
Explanations of the causation of cancer have been sought in many
directions; and three chief theories have been set out. The most
important, and the most interesting from the point of view of the
practising physician, is that which considers cancer as provoked by
long continued irritation under certain circumstances. This doctrine
seems more “true” in respect of the Carcinomata—the cancers of the
adult and the old, and of tissues in contact with the extra-personal
world—than it is in respect of the Sarcomata—the cancers of the
young, and of those inner parts not exposed to irritation by contact
with the world. Yet sarcomata in real life do often seem to follow
injury, and the tissues in which they form may be obnoxious to
injurious influences of which we know nothing.
Another view is that cancer may be due to a parasite of some kind
or another. Certainly, so far as some lower animals are concerned,
this is true, for certain rat and mice cancers are now known definitely
to be associated with parasites. But then we may say, and properly,
that in such cases the parasites are merely acting as do other
irritants, and are not “specific” causes of cancer.
The third doctrine, or set of doctrines, regards cancers as arising
when parts of the body (or rather, elements in the tissues of certain
parts) no longer act in due subordination to the needs of the whole
organism, but comport themselves “anti-socially”: developing
irregularly; propagating themselves illegitimately; and so becoming
parasitic to the commonwealth of the body. Those who hold this will
admit that, in many cases, this revolutionary tendency is one
provoked by irritation and the like: that sometimes it is a mere
manifestation of irregular decay; and that, when it occurs in young
subjects, it is because some islets of tissue have become misplaced,
tucked away, ill-formed, and hampered in development, and so liable
to provoke trouble later under stress of greater or less urgency. Such
a view has much plausibility; there are flaws in a steel girder; there
are tucked-in edges in even the best bound book, and there are
developmental errors in most of us.
Moreover, there is Dr Creighton’s doctrine of physiological
resistance. A part not put to its proper use is more apt than another
to become cancerous. Certainly, unmarried women are more liable
than are married to suffer cancer of the breast or ovary. Yet married
women are more apt than unmarried to suffer cancer of the womb.
Are we to say that in these latter there has been physiological
misuse, or irritation produced by unhealthy child-bearing? So far is
the problem removed from simplicity!
On the other hand, it is certainly as true as ever, that the gods still
cancel a sense misused, and, if we leave out of account for the
moment the cases in which cancer seems due to developmental
error—and who can say whether even then a child does not suffer
vicariously for some physiological transgression by its parents?—the
doctrine that cancer is due to irritation, whether produced by a clay
pipe, hot drinks, constipation, or crude paraffin, does not really tell us
much more than that. The difficulty is this: How to walk in the way of
physiological righteousness, and how to preach it, without falling into
a dogmatism as stupid as unbelief? Mr Wright tells us how, in
medieval times, the Church declared cancer of the tongue to be
sometimes a judgment on sinners for their blasphemy. Well, I for
one, am not prepared to limit the “misuse” that entails physical
disease and suffering to misuse in the material, or physiological
sense. Organs, through the nerves of the “sympathetic”, are directly
connected with the play of emotions and of feeling-states. I am not
sure that investigation would not shew a correlation—sometimes—
between certain persistent and voluntary mental states (morbid
mental states, that is) and the development of cancer in certain
organs. The “argument” that cancer is infrequent in lunatic asylums,
where the majority are mindless rather than wrongly thoughtful,
evades the question.
The quest for a single causal factor, whose “discovery” will lead us
to “abolish cancer”, is then, it would seem, just one more hunt for the
philosopher’s stone. Yet, to use the formula of “right living” does not
seem to be merely a verbal solution of the difficulty.
If we agree that to live rightly is the best insurance we can make
against cancer, we are probably stating, as compendiously as
possible, all we do and shall ever know, in respect of the causation
of cancer. It is then our duty to ascertain how to live rightly in every
sense of the word, and we may so come to realise that almost every
one of what we call the blessings of civilisation has been purchased
at the expense, in some respect, of right living. For this, heavy
interest has to be paid, and even the efforts of science to put matters
right seem too often not more than the borrowing of fresh capital to
pay off old debts. It is right to call attention to the fact that certain
“uncivilised” races, who live healthily and naturally in respect of food,
drink, and sexual activity, do not suffer from cancer. But it is wrong to
suggest that therefore we should adopt either their dietetic or their
sexual customs. What is one man’s meat is another man’s poison.
Adjustment to our surroundings, right living here and now is what we
need. Though Papuans and Sikhs may be very properly adjusted in
their contexts, it is not their adjustments that may best suit our
cases.
This problem—that of right living—is the problem of prevention of
cancer put upon the broadest basis. But, until or unless we work this
out, we have to consider how best to avail ourselves of the
knowledge already in our possession. Herein is one merit of Mr
Wright’s plan. He tells people what, in his judgment, they can best
do, here and now. It is a plan to be discussed; but, let it be clearly
understood, it is one submitted by the author for individual
consideration and action. Supposing it to be found, on analysis and
trial, of real value, a cry might at once be raised for its putting into
execution by central or local provision of the necessary facilities: at
first for voluntary acceptance, then for compulsory adoption. Nothing
could be a greater error. In matters of health what is advantageous
for the individual is often not so, or even grossly disadvantageous,
for the State.
Let every member of the State have the opportunity to avail
himself or herself of what Science and Art can do for him: let none
who has the will suffer because he has not the means. But the too
easy provision of means for the avoidance of consequences of
neglect does, very seriously, put a premium on neglect and penalise
those who themselves make effort in the right direction. Again: hard
on individuals though it would seem, there is a very real racial
advantage in the elimination—natural and inevitable, unless we
interfere—of those who will not take advantage of opportunities
offered them. We are not automata: we exercise choice; when the
opportunity of choosing rightly is offered us, if then we choose
wrongly, we have no right to demand escape from the
consequences, at the expense of others.
At any rate, if the facts relating to Cancer are plainly stated, every
man has but himself to blame if he shrink from obtaining such
diagnosis and treatment, as is now available, at the earliest moment.
It were better still that he avoid from the beginning all what we know
to be predisposing causes of cancer: all the errors of omission and
commission in respect of the physiological and spiritual—or physical
and psychical—functions and relations of his Self.
It is the principle, the pursuit of the unattainable ideal, that really
counts. The simple injunction to eat greens and take paraffin is the
physiological counterpart of seeking to make people moral by act of
Parliament, religious by church-going, and intelligent by attendance
at evening lectures. But even if we make all possible effort, we
cannot all hope to escape, and the necessity for seeking early
diagnosis when things go not well is as imperative as is true the
maxim that “A stitch in time saves nine”.
There is perhaps one more question that may be touched upon:
that of the so-called increase of cancer. It is commonly stated that
cancer is increasing: it is as commonly asked if this is really so. As a
matter of fact, the question (which we are usually told can be only
answered by statisticians) is one that statisticians can only answer
when we have agreed what they are to understand by it. And that is
not so easy as may be at first thought.
It is certainly true that, in the British Isles, the number of deaths
certified each year as due to cancer of one form or another is
gradually and steadily increasing, both absolutely and relatively to
the population. But then we have in the first place, to consider
whether cancer is not diagnosed more frequently in ratio to the
cases seen than was formerly the case, and, in the second, to
remember that cancer is, on the whole, a disease suffered during the
second half of life. Now, our population is an older one than it was:
the birth-rate is falling: so many youths who would now be vigorous
men of thirty-five to forty lost their lives in the war; and lives are, on
the whole, longer than they were, owing to a diminishing liability to
suffer from certain ailments other than Cancer.
Supposing that children ceased to be born, at the same time that
the Ministry of Health succeeded in “abolishing” all diseases except
cancer, and the Home Office and Police reduced the probability of
death from accident, from homicide, and from suicide, to vanishing
point. Would we not then all die from either “old age” or from
“cancer”? If so; should we be justified in declaring that cancer had
“enormously increased” since the successful institution of control of
our own deaths and other peoples’ births?
We are, indeed, again confronted with the old problem of the one
and the many, under one of its numberless aspects. From the point

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