1. Given the input-coefficient matrix for a hypothetical economy made up of only 0.1 0.5 two (2) industries as A = 0.3 0.2 |' provide an economic interpretation for each of the elements in matrix A. 2. Suppose there are only two industries in an economy, producing two outputs (1 and 2). To produce one monetary unit worth of output 1, it requires 0.5 monetary units of output 1 and 0.4 monetary units of output 2. Similarly, to produce one monetary unit of output 2, requires 0.3 and 0.6 monetary units of outputs 1 and 2 respectively. Write out it the matrix of the technical coefficients.

1. Given the input-coefficient matrix for a hypothetical economy made up of only 0.1 0.5 two (2) industries as A = 0.3 0.2 |' provide an economic interpretation for each of the elements in matrix A. 2. Suppose there are only two industries in an economy, producing two outputs (1 and 2). To produce one monetary unit worth of output 1, it requires 0.5 monetary units of output 1 and 0.4 monetary units of output 2. Similarly, to produce one monetary unit of output 2, requires 0.3 and 0.6 monetary units of outputs 1 and 2 respectively. Write out it the matrix of the technical coefficients.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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