Business, 12.12.2020 17:10 LearningZone

The tables below show the spending and revenue for Littleland in 2010. Use these tables to answer the following questions. Spending Category Value (in Millions)
Education $320M
Welfare and Social Security $890M
Healthcare $270M
Defense $120M
Payments on Debt $170M*
Other $240M
*This payment covers total interest owned only.
Revenue Category Value (in Millions)
Income Tax $800M
Sales Tax $270M
Corporate Tax $300M
Social Insurance $340M
GDP in 2010 $7.3 Billion
Total Debt as of 2009 $3.5 Billion
1) How much money (in millions) did Littleland need to borrow in 2010 to finance its government spending?
2) At the end of 2010, what was Littleland's debt to GDP ratio? Give your answer to the nearest whole percentage point.

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Answer from: niicoleassssssf

Explanation:

The total Expenditure is the summation of all the following parameters ( Spending on Education, Spending on Welfare and social security, Spending on Healthcare, Spending on Defense, Payments on Debt, Other Spending)

The total Expenditure = $(320+890+270+120+170+240) million

The total Expenditure = $2010 million

However;

The total Revenue = Income Tax+ Sales Tax+ Corporate Tax+ Social Insurance

The total Revenue = $(800+270+300+340) million

The total Revenue = $1710 million

The debt now will be the difference between the total expenditure and the total revenue.

Debt = $(2010-1710) million

Debt = $300 million

Therefore, Littleland needs to borrow $300 million

At the end of 2010, the total debt = Total debt of 2009 + amount borrowed in 2010

Total debt of 2009 = $ 3.5 billion

amount borrowed in 2010 = $0.3 billion

At the end of 2010, the total debt = $(3.5+0.3) billion

At the end of 2010, the total debt = $3.8 billion

Therefore; the Debt to GDP ratio in 2010 = 3.8/7.3 = 52.05%

The Debt to GDP ratio in 2010 = 52.05%

To the nearest whole percentage ≅ 52%

Answer from: Quest

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Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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The tables below show the spending and revenue for Littleland in 2010. Use these tables to answer th...