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A Simple Economy Consists of Two Industries: Agriculture and Manufacturing

Question 311

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A simple economy consists of two industries: agriculture and manufacturing. The production of 1 unit of agricultural products requires the consumption of 0.3 unit of agricultural products and 0.1 unit of manufactured goods. The production of 1 unit of manufactured products requires the consumption of 0.2 unit of agricultural products and 0.3 unit of manufactured goods. Round the answers to the nearest tenth.

Find the gross output of goods needed to satisfy a consumer demand for $120 million worth of agricultural products and $190 million worth of manufactured products.

$ __________ million

Find the value of the goods consumed in the internal process of production in order to meet the gross output.

$ __________ million

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