The tables show the spending and revenue for Littleland in 2010. Use the tables and other information to answer the questions. S
1 answer:
Answer: (a) $300 million
(b) 52%
Explanation:
Total Government spending in 2010:
= education + welfare and Social Security + health care + defense + payments on debt + other
= $320 + $890 + $270 + $120 + $170 + $240
= $2,010 million
Total Government revenue in 2010:
= income tax + sales tax + corporate tax + social insurance
= $800 + $270 + $300 + $340
= $1,710 million
Hence, Total government spending is greater than the total government revenue.
So,
Littleland need to borrow = $2,010 million - $1,710 million
= $300 million
Littleland need to borrow $300 million to finance its government spending.
Total government debt in 2010:
= Total government debt in 2009 + Increase in debt in 2010
= $3.5 billion + $300 million
= $3.5 billion + $0.3 billion
= $3.8 billion
Littleland's debt to GDP ratio At the end of 2010,
= 0.52
= 52%
You might be interested in
Answer:
a. is the change in total satisfaction derived from consuming one more unit of a good.
Explanation:
Marginal utility: It defines as changes in total satisfaction of consumers with one additional unit changes in the consumption of goods. It derives satisfaction level of consumer with the units of goods consumed, similarly usage of product changes with the number of the product we have in stock or purchased.
Formula; Marginal utility=
There are several types of marginal utility:
- Zero marginal utility.
- Positive marginal utility.
- Negative marginal utility.
- Increasing marginal utility.
- Diminishing marginal utility.