A Simple Economy Consists of Two Industries: Agriculture and Manufacturing

question 119

Multiple Choice

A simple economy consists of two industries: agriculture and manufacturing. The production of 1 unit of agricultural products requires the consumption of 0.1 unit of agricultural products and 0.1 unit of manufactured goods. The production of 1 unit of manufactured products requires the consumption of 0.1 unit of agricultural products and 0.4 unit of manufactured goods. Find the gross output of goods needed to satisfy a consumer demand for $140 million worth of agricultural products and $140 million worth of manufactured products. Round answers to the nearest tenth, if necessary. ​

• A) $449.06 million
• B) $826 million
• C) $210 million
• D) $328.3 million
• E) $477.5 million

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Definitions:

Common Law

A legal system based on custom, tradition, and court decisions, rather than written laws.

Proof of Guilt

The evidence and argument required in a legal proceeding to establish the defendant's guilt beyond a reasonable doubt.

Criminal Law

The branch of law dealing with crimes and their punishment.

Preponderance

The standard of evidence required in most civil cases, whereby the greater weight of the evidence must support the claims of one side over the other.