Input-Output Analysis Is Rarely Used Because

question 163

Multiple Choice

Input-output analysis is rarely used because

• A)it requires tremendously complex calculations.
• B)it requires large amounts of data.
• C)market economies can instead rely on the price mechanism to organize production.
• D)All of the responses are correct.

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Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a factor of production.

Labor

Human effort used in the production of goods and services.

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to enter or exit the market, and perfect knowledge of prices and technology.

Marginal Product

The additional output produced as a result of employing one more unit of a particular input while keeping other inputs constant.