The table below shows the revenues and expenditures for a new country during its first three years of existence.Use this data to answer the following question(s).
Table ST8-1

-Refer to Table ST8-1.Which of the following is correct regarding this government?

Question

The table below shows the revenues and expenditures for a new country during its first three years of existence.Use this data to answer the following question(s).
Table ST8-1
 
-Refer to Table ST8-1.Which of the following is correct regarding this government?

Quizplus · Accepted Answer

In the third year, the government had expenditures of $380 and revenues of $330. This results in a deficit of $50. Therefore, Options A and C are eliminated. 
To determine the national debt after the third year, we need to calculate the cumulative deficit for the past three years. 
Cumulative Deficit = Deficit Year 1 + Deficit Year 2 + Deficit Year 3 
Cumulative Deficit = ($20) + ($40) + ($50) = $110 
To calculate the national debt, we need to add the cumulative deficit to the previous year's national debt. 
National Debt Year 3 = National Debt Year 2 + Cumulative Deficit 
National Debt Year 3 = $80 + $110 = $190 
Therefore, Option B is also eliminated, leaving us with Option D as the correct answer.

The Table Below Shows the Revenues and Expenditures for a New