Chapter 6.6, Problem 31E

(a)

To determine

the number of units from each sector to produce 1 unit of manufacturing and Input Output Matrix where A, M, and H denote agriculture, manufacturing, and households, respectively:

$\begin{array}{l}\text{ A M H}\\ A=\left[\begin{array}{ccc}0.25& 0.4& 0.133\\ 0.14& 0.12& 0.1\\ 0.8& 3.6& 0.133\end{array}\right]\begin{array}{c}\text{Agriculture}\\ \text{Manufacturing}\\ \text{Households}\end{array}\end{array}$

(b)

To determine

To calculate: the production matrix and Input Output Matrix where A, M, and H denote agriculture, manufacturing, and households, respectively:

$\begin{array}{l}\text{ A M H}\\ A=\left[\begin{array}{ccc}0.25& 0.4& 0.133\\ 0.14& 0.12& 0.1\\ 0.8& 3.6& 0.133\end{array}\right]\begin{array}{c}\text{Agriculture}\\ \text{Manufacturing}\\ \text{Households}\end{array}\end{array}$

Demand Matrix:

$D\text{ = }\left[\begin{array}{c}35\\ 38\\ 40\end{array}\right]$

(c)

To determine

To calculate: Find the number of agriculture units used in the production process.