Page 10 of 10 Assume an open economy with two sectors, Food and Water. The production...
Consider a capitalist economy which has two sectors: one producing food and the other machine-tools. Assume that capitalists and workers spend their entire earnings on the food. A worker earns $40, 000 in year in either sector. In the food sector, 200 workers work with machines/tools worth $4,000,000 and produce food worth $ 14,000,000 in a year. In the machine/tool sector 100 workers work with machine tools worth $8,000,000 to produce machine/tools worth $18,000, 000 in a year. What is...
Consider a simple economy consisting of three sectors: food, clothing, and shelter. The production of 1 unit of food requires the consumption of 0.4 unit of food, 0.2 unit of clothing, and 0.2 unit of shelter. The production of 1 unit of clothing requires the consumption of 0.1 unit of food, 0.2 unit of clothing, and 0.3 unit of shelter. The production of 1 unit of shelter requires the consumption of 0.3 unit of food, 0.1 unit of clothing, and...
An economy is based on three sectors, agriculture, manufacturing, and energy. Production of a dollar's worth of agriculture requires inputs of $0.40 from agriculture, $ 0.40 from manufacturing, and $0.20 from energy. Production of a dollar's worth of manufacturing requires inputs of $0.30 from agriculture, $0.30 from manufacturing, and $0.30 from energy. Production of a dollar's worth of energy requires inputs of $0.20 from agriculture, $0.40 from manufacturing, and $0.30 from energy. Find the output for each sector that is...
Question 6 (9 points) In a two sector economy, production of a dollar's worth of agriculture output requires an input of $0.40 from agriculture and $0.20 from manufacturing industry. Production of a dollar's worth of manufacturing output requires an input of $0.15 from agriculture and $0.30 from manufacturing industry. a. Find the necessary levels of output (in $ billions) by agriculture and manufacturing industries if there is also a surplus (final demand) of $16 billion for agriculture and $36 billion...
1. An economy has two sectors: manufacturing and services. One unit of output from manufacturing requires inputs of 0.1 units from manufacturing and 0.8 units from ser- vices. One unit of output from services requires inputs of 0.4 units from manufacturing and 0.2 units from services. The final demand is 4 units of manufacturing and 2 units of services (e) (3 points) W which sector corresponds to each column. rite down the consumption matrix for the economy. Clearly indicate (b)...
The economy of a small island nation is based on two sectors, agriculture and tourism. Production of a dollar's worth of agriculture requires an input of $0.39 from agriculture and $0.44 from tourism. Production of a dollar's worth of tourism requires an input of $0.43 from agriculture and $ 0.28 from tourism. Find the output from each sector that is needed to satisfy a final demand of $40 million for agriculture and $74 million for tourism.
Algebra 1. The Leontief matrix for a 3 sector economy (agriculture, manufactur ing, transportation, respectively) is 20 A=1.3 .4 .5 The production vector is x = 130 10 (a) Calculate the number of units of agricultural, manufacturing and transportation goods which are required to make production x (that is, calculate the inputs of the production) (b) Hence calculate the corresponding demand vector d. aij] for an economy based 2. The input-output (Leontief) matrix A on tourism and mineral products is...
please write matlab code it should be around 20 lines Consider an open economy with three industries: coal-mining operation, electricity- generating plant and an auto-manufacturing plant. To produce $1 of coal, the mining operation must purchase $0.1 of its own production, $0.30 of electricity and $0.1 worth of automobile for its transportation. To produce $1 of electricity, it takes $0.25 of coal, $0.4 of electricity and $0.15 of automobile. Finally, to produce $1 worth of automobile, the auto-manufacturing plant must...
Intermediate Macro Question Consider a small open economy in the classical model, assume the production function is y=1000(square root KL) K=20 L=5 Government spending is 1000 and taxes are 1000. the consumption function is c=1500+0.5(Y-T) investment equation is 1000-50r=I net export function is 5000-5000e world interest rate is r=r*=10 Solve 1 income 2 consumption 3 National Savings 4. Investments 5. Trade balance 6 Real exchange rate 7. The real world interest rate rises to 20 solve for the new values...
Consider a small open economy (e.g. the Netherlands) producing two goods, clothing and food. The clothing industry uses capital (K) and labor (LC) as inputs, while the food industry uses land (La) and labor (LF ) as factors of production. The production technologies for the two industries are given by QC = K ¼ LC 3/4 ; QF = La1/2L F 1/2 . Also, the country is endowed with 216 units of capital, 360 units of labor, and 9 units...