Question 1

Solve the problem.
-A textbook economy has only two industries, the electric company and the gas company. Each dollar's worth of the electric company's output requires 0.20 of its own output and 0.4 of the gas company's output. Each dollar's
Worth of the gas company's output requires 0.50 of its own output and 0.7 of the electric company's output.
What should the production of electricity and gas be (in dollars) if there is a $16 M demand for electricity and a $7
M demand for gas?
A) Electricity: $107.5 M; Gas: $100 M
B) Electricity: $125 M; Gas: $92.5 M
C) Electricity: $115 M; Gas: $103.5 M
D) Electricity: $97.5 M; Gas: $103 M

Accepted Answer

To solve this, we set up equations based on the given information. Let E be the production of electricity and G be the production of gas. The equations are:$$E = 0.20E + 0.4G + 16$$$$G = 0.50G + 0.7E + 7$$Solving these equations simultaneously gives us E = $107.5 M and G = $100 M.

Question 2

Solve the problem.
-Two sectors of a textbook economy are (1) communication equipment and (2) components and accessories. In 2005 the input-output table involving these two sectors was as follows.  Determine the production levels necessary in these two sectors to meet a demand for $80,000 of equipment and $90,000
Of components. Round to significant digits.
A) 
B) 
C) 
D)

Accepted Answer

The answer of Solve the problem.
-Two sectors of a textbook...

Question 3

Solve the problem.
-Given the technology matrix M and the final demand matrix D stated below, find (I - M)-1 and find the output
matrix X.

Accepted Answer

The answer of Solve the problem.
-Given the technology matrix M...

Question 4

Solve the problem.
-An economy is based on two sectors, agriculture and manufacturing. Production of a dollar's worth of
agriculture requires an input of $0.40 from agriculture and $0.10 from manufacturing. Production of a dollar's
worth of manufacturing requires an input of $0.20 from agriculture and $0.30 from manufacturing. Find the
output for each sector that is needed to satisfy a final demand of $16 billion for agriculture and $32 billion for
manufacturing.

Accepted Answer

The answer of Solve the problem.
-An economy is based on...

Question 5

Solve the problem.
-A large oil company produces three grades of gasoline: regular, unleaded, and super-unleaded. To produce
these gasolines, equipment is used which requires as input certain amounts of each of the three grades of
gasoline. To produce a dollar's worth of regular requires inputs of $0.14 worth of regular, $0.18 worth of
unleaded, and $0.17 worth of super-unleaded. To produce a dollar's worth of unleaded requires inputs of $0.14
worth of regular, $0.15 worth of unleaded, and $0.13 worth of super-unleaded. To produce a dollar's worth of
super-unleaded requires inputs of $0.15 worth of regular, $0.17 worth of unleaded, and $0.11 worth of
super-unleaded. In addition, the oil company has final demands for each of the different grades of gasoline.
Find the technology matrix that would be used in determining the total output of each grade of gasoline.

Accepted Answer

The answer of Solve the problem.
-A large oil company produces...

Question 6

Solve the problem.
-The input-output matrix for an economy is TT  Find the internal consumption.
A) 
B) 
C) 
D)

Accepted Answer

The answer of Solve the problem.
-The input-output matrix for an...

Quiz 4: Graphing and Optimization

Solve the problem. -Given the technology matrix M and the final demand matrix D stated below, find (I - M)-1 and find the output matrix X.

Solve the problem. -The input-output matrix for an economy is TT Find the internal consumption.