Consider an economy with three sectors: Fuels and Power, Manufacturing, and Services. Fuels and Power sells 75% of its output to Manufacturing, 10% to Services, and retains the rest. Manufacturing sells 15% of its output to Fuels and Power, 70% to Services, and retains the rest. Services sells 25% to Fuels and Power, 45% to Manufacturing, and retains the rest. Find the equilibrium price for each sector. Assume the total economy is valued at $1,000,000,000 The equilibrium price of the Fuels and Power sector is The equilibrium price of the Manufacturing sector is The equilibrium price of the Services sector is

Consider an economy with three sectors: Fuels and Power, Manufacturing, and Services. Fuels and Power sells 75% of its output to Manufacturing, 10% to Services, and retains the rest. Manufacturing sells 15% of its output to Fuels and Power, 70% to Services, and retains the rest. Services sells 25% to Fuels and Power, 45% to Manufacturing, and retains the rest. Find the equilibrium price for each sector. Assume the total economy is valued at $1,000,000,000 The equilibrium price of the Fuels and Power sector is The equilibrium price of the Manufacturing sector is The equilibrium price of the Services sector is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Country X $m Private Consumption Expenditure 400 Gross Fixed Capital Formation 50 Exports 100 General Government Expenditure 70 Net changes in Physical Stocks + 10 Imports 160 Indirect taxes on goods and services 65 Subsidies 25 Net property inflows from abroad 40 Net property outflows to abroad 30 Capital Consumption 40 What is the Total Domestic Expenditure (TDE) figure at market price for Country X? What is the GDP figure at factor cost for Country X? What is the NNP figure at factor cost for Country X? What is the Gross Domestic Product (GDP) figure at market price for Country X?
Economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual firms and industries. as the price of land increases, there is an incentive to provide more of the resource. land rents are necessary to the economy to ensure that the land is available for economic use. the supply of land responds to changes in rent, but in order to use the land profitably, revenue must cover the rental payments. the supply of land does not respond to changes in rent, but in order to use the land profitably, revenue must cover the rental payments.
Suppose that a country has only two commodities, two factors of production, and no savings. The two commodities are wine (W) and cheese (C) and the two factors of production are capital (K) and labour (L). The country collects the following partial factor taxes: tKC is a tax on capital used in the production of cheese equal to 20%. tKW is a tax on capital used in the production of wine equal to 25%. tLC is a tax on labour used in the production of cheese equal to 20%. tLW is a tax on labour used in the production of wine equal to 15%. Which of the following would have the same outcome as the above taxes? A) Replacing tKW and tKC with a 22.5% tax on capital. B) Replacing tKC and tLC with a 20% tax on cheese. C) Replacing tKW and tLW with a 20% tax on wine. D) Replacing tLW and tLC with a 17.5% tax on labour. E) All of the above. Please explain
%AV , Q1. given the following two equations, answer the questions that follow: Q=4p .(1). Q=200-6p . (2) 1 Identify the demand equation and supply equation? 2 What does the number (4) in equation (1) indicate? 3 What does the number 200 in equation (2) indicate? 4 What does the number 6 in equation (2) indicate? 5 Solve for the equilibrium point mathematically. 6 Solve for the equilibrium point graphically. 7 Suggest an effective minimum price, and another effective maximum price, and show what effect will each have.
The input-output matrix for a simplified economy with just three sectors (natural resources, manufacturing, and trade and services) is given below. Natural Resources Manufacturing Trade and Services 0.1045 0.0428 0.0028 0.0825 0.1086 0.0584 0.0868 0.1019 0.2031 Natural Resources Manufacturing Trade and Services Suppose the demand (in millions of dollars) matrix is the matrix D, shown below. Find the amount each sector should produce. 450 D= 301 126 Production levels of units from natural resources, services are needed. (Round to the nearest whole number as needed.) units from manufacturing, and units from trade and
Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket’s total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Quantity in Basket 2020 2021 2022 Price Cost Price Cost Price Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Streaming services 1 64 64 104 134 Iced coffees 150 2 300 2 2 Textbooks 10 80 800 85 105 Notebooks 8 2 16 2 4 Energy drinks 40 3 120 4 5 Total cost 1,300 Price index 100 Suppose this price index uses 2020 as the base year. In the last row of the table, calculate and…
Suppose an economy consists of the Coal, Electric, and Steel sectors. Denote the prices (that is, dollar values) of the total annual outputs of the Coal, Electric, and Steel sectors by PC. PE, and ps, respectively. Suppose the general solution to find equilibrium prices that make each sector's income match its expenditures is pc = 0.9Ps, PE = 0.85ps, and på is free. One set of equilibrium prices for this economy is Pc = $90, PE = $85, and ps = $100. Find another set. Suppose the same economy used Japanese yen instead of dollars to measure the values of the various sector's output. Would this change the problem in any way? Discuss. If ps = $300, then Pc = $ and PE = $ (Type integers or decimals.)
Q15
aggregate demand for coffee is D(p) = 10 - (3/4)p and the aggregate supply S(p) = 5p then what is the equilibrium in the market for coffee?
Recall that meat production increases when consumer demand for meat increases. Based on the graph above, which statement correctly describes the smog events in the United States? Assume that all other contributors to smog remained constant during this time period. Before 2000, there were more smog events in the United States than in China, while after 1990, there were more smog events in China than in the United States. Before 1990, there were fewer smog events in the United States than in China, while after 1990, there were fewer smog events in China than in the United States. Before 2000, there were fewer smog events in the United States than in China, while after 1990, there were fewer smog events in China than in the United States. Before 1990, there were more smog events in the United States than in China, while after 1990, there were more smog events in China than in the United States.
Q2. Suppose the U.S. economy is represented by the following equations. Z=C+I+G C = 300+.5 YD T = 400 I = 200 YD = Y-T G = 1000 (a) Given the above variables, calculate the equilibrium level of output (Y). (b) Using the graph below, illustrate the equilibrium level of output for the economy. Aggregate Demand (Z) 450 (c) Now assume that consumer confidence increases causing an increase in autonomous consumption from 300 to 400. What is the new equilibrium level of output? (d) How much does income change as a result of this event? What is the multiplier for this economy? (e) Graphically illustrate (in the above graph) the effects of the change in autonomous consumption on the aggregate demand line and equilibrium Y. Clearly indicate in your graph the initial and final equilibrium levels of output. (f) Briefly explain why this increase in output is greater than the initial increase in autonomous consumption.
From the reading assignment (find the article in the previous module): In Japan, parts shortages during the pandemic caused exports to fall by 46 percent in September 2021 compared with a year earlier Group of answer choices True False.