Consider a Simple Economy Consisting of Three Sectors: Food, Clothing

question 12

Short Answer

Consider a simple economy consisting of three sectors: food, clothing, and shelter. The production of 1 unit of food requires the consumption of 0.1 unit of food, 0.4 unit of clothing, and 0.4 unit of shelter. The production of 1 unit of clothing requires the consumption of 0.4 unit of food, 0.2 unit of clothing, and 0.3 unit of shelter. The production of 1 unit of shelter requires the consumption of 0.2 unit of food, 0.1 unit of clothing, and 0.1 unit of shelter. Find the level of production for each sector in order to satisfy the demand for $300 million worth of food, $70 million worth of clothing, and $270 million worth of shelter. Round the answers to the nearest tenth.
$ __________ million worth of food
$ __________ million worth of clothing
$ __________ million worth of shelter

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Definitions:

Proportionate Share

Refers to an individual's or entity's portion or share of a total amount, calculated based on specific criteria or ratios.

Allotment

The distribution or assignment of a portion of something, often referring to shares of stock, land, or time.

Incorporation

Establishing a business entity as a corporation, which holds legal identity separate from its shareholders, enabling it to own property, sue, or be sued.

Advantages

Advantages refer to the beneficial factors or positive outcomes resulting from a specific action, decision, or situation.