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If a country contributes 10% of its GDP to international aid and its GDP is $1 t

Practice Questions

Q1
If a country contributes 10% of its GDP to international aid and its GDP is $1 trillion, how much does it contribute?
  1. $50 billion
  2. $100 billion
  3. $150 billion
  4. $200 billion

Questions & Step-by-Step Solutions

If a country contributes 10% of its GDP to international aid and its GDP is $1 trillion, how much does it contribute?
  • Step 1: Understand that the country contributes 10% of its GDP.
  • Step 2: Identify the GDP of the country, which is $1 trillion.
  • Step 3: Convert 10% into a decimal. 10% is the same as 0.1.
  • Step 4: Multiply the GDP by the decimal. So, calculate 0.1 * $1 trillion.
  • Step 5: Calculate the result. 0.1 * $1 trillion equals $100 billion.
  • Step 6: Conclude that the contribution to international aid is $100 billion.
  • Percentage Calculation – Understanding how to calculate a percentage of a given value.
  • GDP Understanding – Knowledge of what GDP represents and its relevance in economic contexts.
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