An economy consists of three industries: an agricultural industry, a mining industry, and a manufacturing industries. To produce one unit of agricultural output, the agricultural sector requires $0.3 of its own output, $0.2 of mining output, and $0.4 of manufacturing output. To produce one unit of mining output, the mining sector requires $0.5 of agricultural output, $0.2 of its own output, and $0.2 of manufacturing output. To produce one unit of manufacturing output requires $0.3 of agricultural output, $0.3 of mining output, and $0.3 of its own output. Final demands by consumers amount to $20,000 for agricultural goods, $10,000 for mining goods, and $40,000 for manufacturing goods. Write out the input-output system for the economy and find the production level of each industry.
An economy consists of three industries: an agricultural industry, a mining industry, and a manufacturing industries. To produce one unit of agricultural output, the agricultural sector requires $0.3 of its own output, $0.2 of mining output, and $0.4 of manufacturing output. To produce one unit of mining output, the mining sector requires $0.5 of agricultural output, $0.2 of its own output, and $0.2 of manufacturing output. To produce one unit of manufacturing output requires $0.3 of agricultural output, $0.3 of mining output, and $0.3 of its own output. Final demands by consumers amount to $20,000 for agricultural goods, $10,000 for mining goods, and $40,000 for manufacturing goods. Write out the input-output system for the economy and find the production level of each industry.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Kb
Transcribed Image Text:An economy consists of three industries: an agricultural industry, a mining industry, and a
manufacturing industries. To produce one unit of agricultural output, the agricultural sector
requires $0.3 of its own output, $0.2 of mining output, and $0.4 of manufacturing output. To
produce one unit of mining output, the mining sector requires $0.5 of agricultural output, $0.2 of
its own output, and $0.2 of manufacturing output. To produce one unit of manufacturing output
requires $0.3 of agricultural output, $0.3 of mining output, and $0.3 of its own output. Final
demands by consumers amount to $20,000 for agricultural goods, $10,000 for mining goods, and
$40,000 for manufacturing goods. Write out the input-output system for the economy and find
the production level of each industry.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education