A simple economy consists of two industries: agriculture and manufacturing. The production of 1 unit of agricultural products requires the consumption of 0.4 unit of agricultural products and 0.3 unit of manufactured goods. The production of 1 unit of manufactured products requires the consumption of 0.2 unit of agricultural products and 0.4 unit of manufactured goods.
Find the gross output of goods needed to satisfy a consumer demand for $100 million worth of agricultural products and $100 million worth of manufactured products. Round answers to two decimal places.

A) $275.31 million and $300.00 million worth of agricultural goods and manufactured products respectively
B) $275.31 million and $323.99 million worth of agricultural goods and manufactured products respectively
C) $266.67 million and $300.00 million worth of agricultural goods and manufactured products respectively
D) $266.67 million and $323.99 million worth of agricultural goods and manufactured products respectively

Question

A simple economy consists of two industries: agriculture and manufacturing. The production of 1 unit of agricultural products requires the consumption of 0.4 unit of agricultural products and 0.3 unit of manufactured goods. The production of 1 unit of manufactured products requires the consumption of 0.2 unit of agricultural products and 0.4 unit of manufactured goods. ​
Find the gross output of goods needed to satisfy a consumer demand for $100 million worth of agricultural products and $100 million worth of manufactured products. Round answers to two decimal places.
​
A) $275.31 million and $300.00 million worth of agricultural goods and manufactured products respectively
B) $275.31 million and $323.99 million worth of agricultural goods and manufactured products respectively
C) $266.67 million and $300.00 million worth of agricultural goods and manufactured products respectively
D) $266.67 million and $323.99 million worth of agricultural goods and manufactured products respectively

Quizplus · Accepted Answer

The Answer of A simple economy consists of two industries: agriculture and manufacturing. The production of 1 unit of agricultural products requires the consumption of 0.4 unit of agricultural products and 0.3 unit of manufactured goods. The production of 1 unit of manufactured products requires the consumption of 0.2 unit of agricultural products and 0.4 unit of manufactured goods. ​
Find the gross output of goods needed to satisfy a consumer demand for $100 million worth of agricultural products and $100 million worth of manufactured products. Round answers to two decimal places.
​
A) $275.31 million and $300.00 million worth of agricultural goods and manufactured products respectively
B) $275.31 million and $323.99 million worth of agricultural goods and manufactured products respectively
C) $266.67 million and $300.00 million worth of agricultural goods and manufactured products respectively
D) $266.67 million and $323.99 million worth of agricultural goods and manufactured products respectively

A Simple Economy Consists of Two Industries: Agriculture and Manufacturing