An economy consists of three industries: an agricultural industry, a mining industry, and a manufacturing industries. To produce one unit of agricultural output, the agricultural sector requires $0.3 of its own output, $0.2 of mining output, and $0.4 of manufacturing output. To produce one unit of mining output, the mining sector requires $0.5 of agricultural output, $0.2 of its own output, and $0.2 of manufacturing output. To produce one unit of manufacturing output requires $0.3 of agricultural output, $0.3 of mining output, and $0.3 of its own output. Final demands 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 find the production level of each industry.
An economy consists of three industries: an agricultural industry, a mining industry, and a manufacturing industries. To produce one unit of agricultural output, the agricultural sector requires $0.3 of its own output, $0.2 of mining output, and $0.4 of manufacturing output. To produce one unit of mining output, the mining sector requires $0.5 of agricultural output, $0.2 of its own output, and $0.2 of manufacturing output. To produce one unit of manufacturing output requires $0.3 of agricultural output, $0.3 of mining output, and $0.3 of its own output. Final demands 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 find the production level of each industry.
Chapter19: Measuring Economic Performance
Section: Chapter Questions
Problem 6P
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Transcribed Image Text:An economy consists of three industries: an agricultural industry, a mining industry, and a
manufacturing industries. To produce one unit of agricultural output, the agricultural sector
requires $0.3 of its own output, $0.2 of mining output, and $0.4 of manufacturing output. To
produce one unit of mining output, the mining sector requires $0.5 of agricultural output, $0.2 of
its own output, and $0.2 of manufacturing output. To produce one unit of manufacturing output
requires $0.3 of agricultural output, $0.3 of mining output, and $0.3 of its own output. Final
demands 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 find
the production level of each industry.
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