Economic Problem

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March 10, 2017

1 

1 The I-O table shows the interdependency of national sectors, such as the input needed by a particular sector, and its own output that is, in turn, as used by another. From this, the prominence of one sector or industry could be seen based on the amount of inputs that it needs from others to operate, and the output that it produces. Attached below is an example of a national I-O table. In this example the prominence of Industry A could be seen from the high total Gross output relative to its total inputs and the outputs of the other industries given.

2 Since the I-O table shows the interdependence of each sector with one another based on the relationships between inputs and outputs, the dependence of the whole economy on a specific industry (e.g. mining) could be seen depending on how much of its outputs are needed by the other sectors.

3 The I-O table can show an industry`s potential for growth (and to stimulate growth),