A country has public debt of 1100 billion euros and a GDP of 1000 billion euros. What is the debt-to-GDP ratio?
Answer and explanation
Correct answer: C. 110 %
- Step 1: Ratio = debt / GDP x 100. Step 2. 1100 / 1000 x 100 = 110 %. Answer: 110 %. Why not the others: 90.9 %: the ratio was inverted. -10 %: the difference was used instead of the debt. 11 %: the debt was divided by 100.
Practise more Quantitative Economics.
Free questions with an explanation for every one, and full timed Sciences Po and Grandes Ecoles Entrance Practice mock tests.
More Quantitative Economics questions
- The nominal interest rate is 8 % and inflation is 3 %. What is the approximate real interest rate?
- The price of a good rises by 4 % and the quantity demanded falls by 12 %. What is the absolute value of the price elasticity of demand?
- A country has a GDP of 600 billion euros and 20 million inhabitants. What is the GDP per inhabitant?
- A country has public debt of 3300 billion euros and a GDP of 3000 billion euros. What is the debt-to-GDP ratio?
- A country has 50 million people in the labour force and 5 million unemployed. What is the unemployment rate?
- A country has 30 million people in the labour force and 3 million unemployed. What is the unemployment rate?