Consider the three-sector input/output system represented by the following input-coefficientmatrix and final demand vector where x, (i= 1,2,3) represents the outputs in the respectivesectors :A =1/3d =/2Explain the economic meaning of each of the circled elements.Explain the economic meaning (if any) of the first column sum of A.Explain the economic meaning (if any) of the first row sum of A.Explain the economic meaning (if any) of the following:a.b.с.d.a21X1 + a22X2 + a23X3Find the Leontief matrix (I - A).е.e.

Input output system is a system that shows us how each sector of an economy is dependent on the…

Answered: Consider the three-sector input/output…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

- Suppose that we need to develop a model to help us to allocate a resource between two time periods: Period 1 and Period 2. Demand can be characterized in both periods as: P = 20-2Q. In both periods the marginal cost of extracting the resource is constant at $4 per unit. The total quantity of the resource that is available to allocate between the two periods is 18 units (in other words, Q1 + Q2 <= 18). Assume that the discount rate is 5%. What is the marginal user cost? a) 0; b) 0.76; c) -2; d) 1.9 Shark
5. Recall the supply and demand example from notebook 1. p= 2q + 10 p= 30-q Express this system as a matrix equation using Markdown and solve using the inverse function in Numpy. Now, shift the demand curve 5 units to the right. Solve for the new equilibrium and graph using the econplot function from notebook 1.
Which of the following properties characterize the Heckscher-Ohlin Model? Check all that do. The law of diminishing returns Identical technologies across countries Perfect Competition Perfect mobility of factors between industries Constant returns to scale Factor Price Equalization O Factor intensity reversals O Perfect mobility of factors between countries O Identical technologies across industries O Factor Complementarity
I need some help Consider the equations and graphs for the demand and supply functions given below. Then answer the following questions. P=5Q^2+72Q P=-Q^2-3Q+20.23 State the domain for these curves for the analysis to be valid. (Answer to 2 decimal places)
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Assume that sugar-based soft drinks are produced in a market shown on the graph above. Answer the following questions based on the information given in the graph. (a) To reduce the consumption of sugary soft drinks, suppose the government imposes a $2 per-unit sales tax on soft drinks. (i) Will the price of soft drinks increase by the full amount of the sales tax? Explain. (ii) Calculate the tax revenue the government can collect from the sale of soft drinks. Show your work. (iii) Will the consumer surplus increase, decrease, or stay the same after the tax? (iv) Calculate the deadweight loss created by the tax. Show your work. (b) Suppose that instead of imposing the per-unit sales tax,…
2
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Moving from static efficiency state with an unlimited resource supply to a dynamic efficiency state with a limited resource supply, what kinds of changes are created with respect to price, quantity, and MUC? Why? Explain the concepts behind these changes for a 2-period model, making use of changes to the set of assumptions in the problem set up (e.g., resource supply, MC across periods, demand changes across periods, discount rate across periods, etc.).
Assume a Heckscher-Ohlin model. Home and Foreign produce food (F) and machinery (M) using labor (L) and capital (K) as the unique inputs in both sectors. Both countries face the same technologies. In both countries the input requirements are fixed at akf = 2, aLF = 1, aKM = 2, and aLM = 3 (i.e., 3 units of labor are required to produce one unit of machinery etc.). Home is endowed with K = 800 units of capital-hours and L= 600 units of labor-hours. Foreign is endowed with K* = 600 units of capital-hours and L* = 400 units of labor-hours. The output of food is denoted by QF. The output of machinery is denoted by QM- a) Determine Home's capital constraint. Home's capital constraint is b) Which of the two goods is capital-intensive in the production? is capital-intensive. c) Which output mix will be realized in Home if it uses all its resources? The optimal output mix is units of food and units of machinery. d) Which good will be exported by Home? Home will export
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
Problem B: The Production Model Consider the production model that we have seen in class with a production function for final output specified as Y = K1/4L3/4 Capital and labor available in the economy are, respectively, K = 40 and L = 50. B.1 Write down the profits maximization problem for firms in the production model (you can write profits in units of final output). Derive the first order conditions for the firm's maximization problem and provide the economic interpretation of the first order condition for labor. B.2 Please define the property of "Constant Returns to Scale" as we did in class. Does the production function above exhibit constant returns to scale? Show your computations. B.3 State the equations that constitute the competitive general equilibrium for the economy in the production model above. What are the variables that you need to solve for to obtain a solution to the equilibrium?
3

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

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

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

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

SEE MORE TEXTBOOKS