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The following technology matrix for a simple economy describes the relationship

ID: 3421083 • Letter: T

Question

The following technology matrix for a simple economy describes the relationship of certain industries to each other in the production of one unit of product.

                                                            Outputs

A

M

F

U

Inputs

Agriculture

0.32

0.06

0.09

0.06

Manufacturing

0.11

0.41

0.19

0.31

Fuels

0.31

0.14

0.18

0.20

Utilities

0.18

0.26

0.21

0.25

a.         How can you tell this is an open Leontief Model?

b.         What industry is most dependent on fuels for its operation?

c.         How many units of fuel are required to produce 100 units of utilities?

A

M

F

U

Inputs

Agriculture

0.32

0.06

0.09

0.06

Manufacturing

0.11

0.41

0.19

0.31

Fuels

0.31

0.14

0.18

0.20

Utilities

0.18

0.26

0.21

0.25

Explanation / Answer

A

M

F

U

Inputs

Agriculture

0.32

0.06

0.09

0.06

Manufacturing

0.11

0.41

0.19

0.31

Fuels

0.31

0.14

0.18

0.20

Utilities

0.18

0.26

0.21

0.25

A

M

F

U

Inputs

Agriculture

0.32

0.06

0.09

0.06

Manufacturing

0.11

0.41

0.19

0.31

Fuels

0.31

0.14

0.18

0.20

Utilities

0.18

0.26

0.21

0.25

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