A certain economy consibt ing of the two sectors of goods and servicessupports a defense system that consumes $90 billion wort h of goods and$20 billion worth of services from the economy but does not contributeto economic production. Suppose that 50 cents worth of goods and 20cents worth of services are required to produce $1 wort h of goods andthat 30 cents worth of goods and 60 cents worth of services are requiredto produce $1 wort h of services. ·what must the total output of theeconomic system be to support this defense system?

A certain economy consibt ing of the two sectors of goods and servicessupports a defense system that consumes $90 billion wort h of goods and$20 billion worth of services from the economy but does not contributeto economic production. Suppose that 50 cents worth of goods and 20cents worth of services are required to produce $1 wort h of goods andthat 30 cents worth of goods and 60 cents worth of services are requiredto produce $1 wort h of services. ·what must the total output of theeconomic system be to support this defense system?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 27RQ: In the tradeoff between economic output and environmental protection, what do the combinations on...

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