If a country spends 25% of its GDP on healthcare and the GDP is $2 trillion, how

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Question: If a country spends 25% of its GDP on healthcare and the GDP is $2 trillion, how much is spent on healthcare? (2019)

Options:

Correct Answer: $500 billion

Exam Year: 2019

Solution:

Healthcare spending = 0.25 * 2,000 billion = 500 billion.

If a country spends 25% of its GDP on healthcare and the GDP is $2 trillion, how much is spent on healthcare? (2019)

If a country spends 25% of its GDP on healthcare and the GDP is $2 trillion, how much is spent on healthcare? (2019)

Step 1: Understand that GDP stands for Gross Domestic Product, which is the total value of all goods and services produced in a country.
Step 2: Identify the percentage of GDP that is spent on healthcare, which is 25%.
Step 3: Convert the percentage into a decimal for calculation. 25% as a decimal is 0.25.
Step 4: Know the total GDP amount, which is $2 trillion. In billions, this is 2,000 billion (since 1 trillion = 1,000 billion).
Step 5: Multiply the decimal (0.25) by the GDP in billions (2,000 billion) to find the healthcare spending.
Step 6: Perform the multiplication: 0.25 * 2,000 billion = 500 billion.
Step 7: Conclude that the amount spent on healthcare is $500 billion.

Percentage Calculation – Understanding how to calculate a percentage of a given value, in this case, 25% of GDP.
GDP Understanding – Knowledge of what GDP represents and how it relates to national spending.