The relationship governing the intraindustrial and interindustrial sales and purchases of four basic industries - agriculture (A), manufacturing (M), transportation (T), and energy (E) - of a certain economy is given by the following input-output matrix. A M T E How many units of energy are required to produce 1 unit of manufacturing goods?
A) 0.5 units
B) 0.1 units
C) 0.2 units
D) 0.4 units

Question

The relationship governing the intraindustrial and interindustrial sales and purchases of four basic industries - agriculture (A), manufacturing (M), transportation (T), and energy (E) - of a certain economy is given by the following input-output matrix. A M T E  How many units of energy are required to produce 1 unit of manufacturing goods?
A) 0.5 units 
B) 0.1 units 
C) 0.2 units 
D) 0.4 units

Quizplus · Accepted Answer

To find the answer, we need to look at the second column of the matrix, which shows the inputs required to produce one unit of each industry. We are interested in the energy (E) input required for one unit of manufacturing (M) goods, which is given by the entry in the second row and fourth column, i.e., 0.2. Therefore, the answer is 0.2 units of energy required to produce 1 unit of manufacturing goods.

The Relationship Governing the Intraindustrial and Interindustrial Sales and Purchases