The Relationship Governing the Intraindustrial and Interindustrial Sales and Purchases

question 17

Multiple Choice

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 5 units of all goods in the economy?

• A) 2.3 units
• B) 2.5 units
• C) 2.9 units
• D) 3.2 units

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Definitions:

Balance Sheet

An account statement depicting the financial position of a company through its assets, obligations, and equity of shareholders at a certain time.

Revenue

The total amount of income generated by the sale of goods or services related to a company’s primary operations.

Cash

Currency and coins that are legal tender, including money deposited in checking accounts and obtainable on demand.

Income Statement

A financial statement that shows a company's revenues and expenses, culminating in the net income for a specific period.