An Economy Has a Manufacturing Industry and a Banking Industry

question 167

Multiple Choice

An economy has a manufacturing industry and a banking industry. Each unit of manufacturing output requires inputs of 0.5 unit of manufacturing and 0.2 unit of banking. Each unit of banking output requires inputs of 0.3 unit each of manufacturing and banking. If surpluses of 133 units of manufacturing and 100 units of banking are desired, find the gross production of each industry. ​

• A) manufacturing =424 , banking =264
• B) manufacturing =390 , banking =320
• C)manufacturing =380 , banking =310
• D)manufacturing =380 , banking =320
• E) manufacturing =390 , banking =310

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to buy at various prices.

Curds

Solid chunks created from milk during the cheese-making process when acids or enzymes cause milk proteins to coagulate.

Whey

A by-product of cheese production, rich in proteins and used in various food products and supplements.

Curds

Solid chunks or clumps that form in milk during the coagulation process, often as a precursor to cheese production.