The economy of a small island nation is based on two sectors, coal and steel. Production of a dollar's worth of coal requires an input of $0.18 from coal and $0.21 from steel. Production of a dollar's worth of steel requires an input of $0.46 from coal and $0.12 from steel. Find the output from each sector that is needed to satisfy a final demand of $36 million for coal and $43 million for steel. The output from the coal sector is approximately $ million. (Round to the nearest million.)

The economy of a small island nation is based on two sectors, coal and steel. Production of a dollar's worth of coal requires an input of $0.18 from coal and $0.21 from steel. Production of a dollar's worth of steel requires an input of $0.46 from coal and $0.12 from steel. Find the output from each sector that is needed to satisfy a final demand of $36 million for coal and $43 million for steel. The output from the coal sector is approximately $ million. (Round to the nearest million.)

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

Consider a small, open economy inhabited by a large number of individuals who live for an infinite number of periods and who can perfectly forecast the future. In this economy there is only one good, tradable at no cost, such that its domestic price is determined by the Law of One Price, P(t) 5 S(t)F, where PðtÞ is the domestic price of the good and PF is the foreign price of the good, which we will assume is equal to 1. Time is continuous and the economy is endowed with a constant and exogenous flow of the consumption good. There is perfect mobility of capital in the sense that agents can lend or borrow at the international interest rate of i > 0, which we assume as constant. The real money supply is defined as where M(t) is the nominal money supply. This economy finances an exogenous fiscal deficit, a. Show that the rate of growth of the real stock of money is equal to the difference between the rate of growth of money supply and inflation. b. Assume that the…
The economies of North Korea and India are: different in that North Korea has a command system, while India has a market system. similar in that they are both basically command systems. similar in that they are both basically market systems. different in that India has a command system, while North Korea has a market system.
Suppose that President Clinton has recently recommended that the U.S. should use some of the strategic oil reserves (oil stored underground and owned by the United States government) in order to solve the U.S. oil supply problem. Assume that quantity demanded in the short-run is inelastic at 1 million barrels per day. The quantity supplied (per day) is equal to 700,000 + 10,000P (where P is the price for a barrel of oil). a. What would be the current price for a barrel of oil? N b. If Clinton releases 100,000 barrels per day, what is the new equilibrium price and quantity? N c. Presidential candidate George W. Bush proposed that all states lower their gasoline tax. Assume that the gasoline tax reduction leads to a $10 decrease in the tax on a barrel of oil (i.e., supply side). What is the new price and quantity? N How much of the tax savings will be passed on to consumer through lower prices? Assume that the changes in part b. have not occurred. d. What impact do each of these two…
Suppose the US is relatively well endowed with skilled workers and Mexico is relatively well endowed with unskilled workers. Define wg as the wage of a skilled worker and wy as the wage of an unskilled worker. The production of widgets is unskilled labor intensive and the production of gadgets is skilled labor intensive. Both factors of production are mobile across industries but immobile across countries. Assume perfect competition in both markets. In moving from autarky to free trade, the skilled workers are better off in Mexico. True. False.
In 2019 worldwide food exports totaled $700 billion. In the same year, US food exports were $90 billion. In 2019, worldwide total exports were $20.5 trillion. In 2019, US total exports were $2.9 trillion. Calculate the Belassa index for US food exports. By this measure, does the US have comparative advantage in food products?
The table below shows the hypothetical supply schedule of Dory's Leche flan production. Table 2. Supply Schedule of Dory's Leche flan Production PRICE (in peso) QUANTITY SUPPLIED (per tub) -2 80 160 6 240 10 320 14 400 18 1. Construct the supply curve using the data in Table 2. 2. Derive the supply function for Dory's Leche flan production. 3. Answer this question: Why is the supply curve upward sloping? Explain in 3-5 sentences the behavior of the producers (in terms of quantity supplied) when price changes.
The price of bauxite increased to its highest level due to conditions which impacted supply. Historically, bauxite has traded at between 1500 and 1600 USD per tonne. But the price increased to over 1900 USD in November 2020. Growing demand in Canada for bauxite to be turned into aluminium, coupled with a sharp fall in Jamaican production have both been factors in the price increase. Bauxite production in Jamaica for 2017-18 fell 65% year-on-year due to flood conditions causing damages as well as increased competition. The London Metal Exchange predicts that global consumption of bauxite is likely to be greater than production by 20 million tonnes next year. In the US, companies in the steel and petrol industry have put pressure on the US government to relax import controls, warning that otherwise they might run out of bauxite. Commentators predict that most steel and petrol producers will be unaffected because bauxite is such a small part of their spending. Illustrate the predictions…
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
The China and ASEAN Free Trade Area (CAFTA) was officially launched on January 1, 2010. 90% of the trade products between China and ASEAN will achieve zero tariff and substantially open the service trade market. After the completion of the free trade area, the trade between ASEAN and China accounts for 13% of world trade. It has become a huge economy covering 11 countries, 1.9 billion people and a GDP of US $6 trillion. It is not only the most populous free trade area in the world, but also the largest free trade area among developing countries. 2. The EU is one of the most developed spaces in the World, however, the wealth is and has been unevenly distributed across the EU. Some countries called the core includes Austria, Belgium, Denmark, Finland, France, Germany, Luxembourg, the Netherlands, Sweden, the UK, and Northern Italy, and some are periphery area, including Greece, Ireland, Portugal, Spain, and Southern Italy. Questions: a) What are main forms of…
A country is considering restricting outward FDI. Domestic firms are arguing that establishing new affiliates or expanding existing affiliates in other countries will tend to decrease their exports sales. You have been hired as a consultant by the government to provide a report on the arguments for and against restricting outward FDI. (The report must also take into accounts the argument of the domestic firms).
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.