Kb An economy consists of three industries: an agricultural industry, a mining industry, and amanufacturing industries. To produce one unit of agricultural output, the agricultural sectorrequires $0.3 of its own output, $0.2 of mining output, and $0.4 of manufacturing output. Toproduce one unit of mining output, the mining sector requires $0.5 of agricultural output, $0.2 ofits own output, and $0.2 of manufacturing output. To produce one unit of manufacturing outputrequires $0.3 of agricultural output, $0.3 of mining output, and $0.3 of its own output. Finaldemands 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 findthe production level of each industry.

An economy consists of three industries: an agricultural industry, a mining industry, and a…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the following input-output (1-0) table of a national economy (entries are in billions of Turkish liras): Agriculture Manufacture Services Final Demand Total 280 650 310 Agriculture Manufacture Services Factors: Labor Capital (profits) Intermediate import Total 80 120 170 1010 50 75 280 150 400 270 230 1 405 5 85 30 315 150 135 720 Which of the following statements is NOT correct about the above 1-0 table? 730 460 1 010 E) Most of the foreign inputs are used by the Manufacture sector. 1 405 720 A) Services sector has the least percentage of all intermediate inputs proportional to its total inputs... B) Outputs of Agriculture and Services sectors are used by final demand approximately at the same percentage. C) Agriculture sector has the least percentage of domestic intermediate inputs proportional to its total inputs. D) Manufacture sector has the largest contribution to the GDP.
An economy consists of coal, electric, and steel industries. For each $1.00 of output, the coal industry needs $0.03 worth of coal, 50,30 worth of electricity and $0.30 worth of steat the electric industry needs $0.03 worth of coal, $0.04 worth of electricity, and $0.04 worth of steel; and the steel industry needs $0.20 worth of coal and $0.01 worth of steel. The sales demand is estimated to be $2 bilion for coal, $2 billion for electricity, and $3 billion for steel. Suppose that the demand for electricity triples and the demand for coal doubles, whereas the demand for steel increases by only 50%. At what levels should the various industries produce in order to satisfy the new demand? Set up the input-output matrix. Coal Electric Steel Coal Electric Steel
The economy of Zambia has two sectors, agriculture and industry. Consumers are the end users ofthe final output. The agriculture sector produces maize worth K16000 and milk worth K16000.Maize worth K4000 as well as milk worth K6000 is sold to consumers for direct consumption, andmaize worth K12000 and milk worth K10000 is sold to the industry as intermediate inputs in theproduction of mealie meal and butter respectively. The industry uses this maize to produce mealiemeal worth K32000 and uses milk to produce butter worth K18000 which are sold to consumersfor final consumption. In addition, the agriculture sector pays wages worth K20000, rent worthK4000 and earns profit equal to K8000. The industry sector pays wages worth K16000, rent worthK6000 and earns a profit of K6000.a) Calculate GDP for the above economy using the three approaches: product approach, income approach, and expenditure approach. b) Peter was bragging to his wife that his country, Zambia, is doing better than his…
Refer to the diagram to answer the following: a. The movement from point A to point B represents: b. The movement from point B to point C represents: c. The movement from point A to point C represents Real GDP per hour Worked Y/L ($, 000) 1,000 900- 800- 700- 600- 500- 400 200- 100- Aggregate Production 0 ljuds 300-midifi E Tommyformemberit A 8 D 20 40 00 80 Capital per hour worked K/L (5,000) 100 O Q
Assume an economy where there are two producers: a wheat producer and a bread producer. In agiven year, the wheat producer grows 3 million tonnes of wheat, of which 2.5 million tonnes aresold to the bread producer at $30 per bushel, and 0.5 million tonnes are stored by the wheatproducer to use as seed for next years crop. The bread producer produces and sells 100 millionloaves of bread to consumers for $3.50 per loaf. Determine GDP in this economy during this yearusing the product and expenditure approaches.
If agriculture accounts for $4,000, industries $5,000 and services $7,000 of total output, determine the following: (i) What is the sectorial shares in gross output of the three sectors (ii) What is the value of gross output & GDP if total intermediate cost is 50% of industrial output?
The following diagram shows select information for an economy made up of three industries for a particularly year. i+wtr+p Industry 1 f-40 10 Hwtrtp -0 20 90 30 Industry 2 +f-160 i+wtr+p f-0 Industry 3 m- 100 iminterest, wwages/salaries;r=rent pprofit, m=intermediate inputs, s= maket value of total industry output; f=market value of industry output sold as 'final' products. Note: All values are in billions of doll ars What is the gross domestic product (at factor prices) for this economy? none is correct O $400 billion O $600 billion O $330 billion 24237/take/gustion/200 EX
Uisng Scottish Government input output tables for 2019, look at the ten sectors in food and drink production (SIC10.1" Meat processing" to 11.07 "Soft drinks". Which sector has the highest output? Question 5Answer a. SIC 11. 07 "Soft drinks" b. SIC 11.01 -0.4 "Spirits and Wines" c. SIC 10.7 "Bakery and farinaceous" d. SIC 10.2-3 "Fish and fruit processing"
6. Use the information given here to answer the following questions: Manufacturing: Sales revenue PM QM = 150 Payments to labor=W-LM=100 Payments to capital=Rx K = 50 Agriculture: largsib e diw gairde vil Sales revenue = PA-QA = 150g to song orb og ands and Payments to labor=W.LA = 50 seogqu2.01 Payments to land=RT T=100 admul zboog own soub Holding the price of manufacturing constant, suppose the increase in the price of agriculture is 20% and the increase in the wage is 10%. a. Determine the impact of the increase in the price of agricul- ture on the rental on land and the rental on capital. bas ebens ni b. Explain what has happened to the real rental on land and the real rental on capital. rurgiël od zelimia dosts & al
Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 15% of its output to Lumber, 50% to Energy, and retains the rest. Lumber sells 15% of its output to Mining, 50% to Energy, 15% to Transportation, and retains the rest. Energy sells 20% of its output to Mining, 15% to Lumber, 20% to Transportation, and retains the rest. Transportation sells 10% of its output to Mining, 15% to Lumber, 40% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: Mining Lumber Energy Transportation (Type integers or decimals.)
Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 15% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 10% of its output to Mining, 60% to Energy, 15% to Transportation, and retains the rest. Energy sells 20% of its output to Mining, 20% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 20% of its output to Mining, 15% to Lumber, 60% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Mining Distribution of Output from: Lumber Energy Transportation Purchased by: (Type integers or decimals.) Mining Lumber Energy Transportation
Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 5% of its output to Mining, 60% to Energy, 25% to Transportation, and retains the rest. Energy sells 30% of its output to Mining, 15% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 25% of its output to Mining, 15% to Lumber, 50% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation (Type integers or decimals.) Purchased by: Mining Lumber Energy Transportation

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