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% ofits 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.MiningDistribution of Output from:Lumber Energy TransportationPurchased by:(Type integers or decimals.)MiningLumberEnergyTransportation

The rows of the table represent the purchases made by each sector, while the columns represent the…

Answered: Suppose an economy has four sectors:…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 10% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 5% of Kits 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 b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by P. PL. PE, and Pr respectively If p₁-$100, then pµ-$___‚ p_ - $¯¯¯‚ and pµ- (Round to the nearest dollar as neaded Purchased by: Mining Lumber Energy Transportation 1-57
Consider an economy of four sectors, Agriculture, Energy, Manufacturing, and Transportation. Agriculture sector sells 12% of its output to Energy, 35% to Manufacturing, 25% to Transportation and retains the rest. Energy sector sells 30% of its output to Agriculture, 30% to Manufacturing, 15% to Transportation and retains the rest. Manufacturing sector sells 30% of its output to Agriculture, 27% to Energy, and retains the rest. Transportation sector sells 20% of its output to Agriculture, 10% to Energy, 30% to Manufacturing and retains the rest. a. Construct the exchange table for this economy. b. Write down the system of linear equation that leads to prices at which each sector’s income matches its expenses, and solve these equations by Gaussian method to find these prices.
Assume that an economy is based on three industrial sectors: agriculture (A), building (B), and energy (E). The technology matrix M is: A BE uarruarruarr (4 [0.6 0.2 0.1 0.4 0.1 0.1 0.4] 0.1 0.1 B 0.1 M How much input from A, B, and E are required to produce a dollar's worth of output for B? How much input from A is required to produce a dollar's worth of output for B? How much input from B is required to produce a dollar's worth of output for B? How much input from E is required to produce a dollar's worth of output for B ? Assume that an economy is based on three industrial sectors: agriculture (A), building (B), and energy (E). The technology matrix M is: A BE ↑ ↑ ↑ A-> 0.6 0.2 0.1 B-> =M 0.1 0.4 0.1 E-> 0.1 0.1 0.4 How much input from A, B, and E are required to produce a dollar's worth of output for B? How much input from A is required to produce a dollar's worth of output for B? How much input from B is required to produce a dollar's worth of output for B? How much input from E…
What are the benefits and risks associated with just-in-time delivery of inputs to factories? Why do computer chip factories run continuously rather than maintaining some spare capacity? What is the underling economic concept that explains why 80 percent of the world's most advanced computer chips are produced by a single firm, Taiwan Semiconductor, rather than by many small firms? Just-in-time delivery of inputs to factories has benefits and risks. Identify which of the following are true. You may select more than one answer. Instructions: In order to receive full credit, you must make a selection for each option. For correct answers), click the box once to place a check mark. For incorrect answerts), click the option twice to empty the box. 5 33 It eliminates the costs associated with maintaining inventories of inputs If a single type of input is not delivered on time, a factory production line will have to be shut down. Inventories are easier to track and manage 33 Firms can more…
Goods and Services are exchanged and used As Final Consumption For Investment As Inputs in the production of other goods and services All of the above
Let's think of an economy with two industries and these industries be water and electricity companies. Electricity company, electricity using water and electricity; The water company also produces water using water and electricity. With the output of both companies measured in TL, 0.1 TL electricity and 0.1 TL water is required to produce 1 TL of electricity, 0.8 TL electricity and 0.2 TL water to produce 1 TL water. As the demand of the foreign sector is 18.000 TL electricity and 12.000 TL water production, X1 = total output of the electricity company, X2 = total output of the water company, electricity and waterCalculate the total output required for the companies to meet both external and internal demand by any matrix method.
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $30,000 a year, and take over a restaurant space that he owns and currently rents to his brother for $24,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. Suppose the sushi bar’s revenue from the first year is $120,000. What is the chef’s economics profit? 14,000 -14,000 66,000 68,000
Assume an economy in which there are two producers: a wheat producer and a bread producer. In a given year, the wheat producer grows 4 million tonnes of wheat, of which 3.5 million tonnes are sold to the bread producer at $20 per tonne and 0.5 million tonnes are stored by the wheat producer to use as seed for next year's crop. The bread producer produces and sells 300 million loaves of bread to consumers for $1.50 per loaf. Determine GDP in this economy during this year by using the product and expenditure approaches. Using the product approach, the value added by the wheat producer is $ 80 million, the value added by the bread producer is $ 380 million, and GDP in this economy is $ 460 million. Using the expenditure approach, C = $ million, I= $ million, G = $ million, NX = $ million, and GDP in this economy is $ million.
Consider a hotel in Krems whose yearly gross value-added (GVA) equals 1 million euros. The following services are not produced by the hotel but outsourced to other Lower Austria companies: -Linen cleaning, whose services for that hotel amount to 100.000 euros in terms of GVA -Advertisement, whose services for that hotel amount to 50.000 euros in terms of GVA In addition, the hotel needs the following inputs: -Food and beverages, for which it pays 300.000 euros, of which 200.000 euros are produced in Lower Austria, 50.000 euros in the rest of Austria and 50.000 abroad. -Energy, for which it pays 100.000 euros, of which 50.000 euros are produced in Upper Austria, of which 25.000 euros imports are needed, the rest is directly imported from abroad. Calculate direct and indirect GVA impact of Lower Austria and Austria.
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.
120.) Which of the following is not economic investment? The purchase of a drill press by the Ajax Manufacturing Company. Construction of a small heating and air conditioning repair facility. The purchase of 100 shares of AT&T by a retired business executive. The building of a new assembly line for Ford Motor Company.

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