5 Questions
What is the basis of the input-output analysis technique?
The inter-relationships between sectors
What can be predicted using input-output analysis?
The input requirement
Which sectors can be used to predict the coal requirement of the country?
All of the above
What does input-output analysis yield?
Sector-wise forecasts
Why is input-output analysis widely used for forecasting business events?
It is based on easily obtained data
Study Notes
Input-Output Analysis Technique
- The basis of input-output analysis is the interdependence of different sectors of an economy.
Predictions and Applications
- Input-output analysis can be used to predict the effects of changes in one sector on other sectors, as well as the overall economy.
- It can also be used to predict the coal requirement of a country by analyzing the energy requirements of various sectors, such as industry, transportation, and residential sectors.
Output of Input-Output Analysis
- Input-output analysis yields a detailed picture of the interdependencies between different sectors, including the flow of goods and services between them.
Advantages of Input-Output Analysis
- Input-output analysis is widely used for forecasting business events because it provides a comprehensive understanding of the economy, allowing for better decision-making and policy planning.
Test your knowledge on Input-Output Analysis and its application in forecasting output and input requirements in the economy. Explore the inter-relationships between different sectors and understand the basis of this technique.
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