I am trying to make sense of some of the terminology.
Basically i get that each industry in an input matrix is dependant on each of those industries to some specified extent in order for production.
Is the output what each sector produces before we take into acount the consumption of each matrix? and is the production what we have left after consumption?
I will post two sample questions that i have been working on.
1)If the gross production for this economy is $10 million of tourism, $15 million of trans-
portation, and $20 million of services, what is the total value of the inputs consumed by
each sector during the production process?
Is the gross production what we have after consumption.Ie Cx=total consumption, and thus total production +consumption = total output?
2)If the total outputs of the tourism, transportation, and services sectors are $70 million, $50
million, and $60 million, respectively, what is the net production of each sector?
So in this part they have used the term output and net production,Now what is the output, is it everything produced "prior" to consumption of each sector? and what is the difference between net production and gross production.The book i have has like 1 page on input output, so i couild use some help, because i want to make sure i am interpreting everything correctly.
(i have not posted the consumption matrix because i am trying to get a better ubderstanding of the terminology and what it means, solving is pretty straightforward)