Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th

# The technology matrix of an economic system of two industries is |0.500.250.400.67|. Test whether the system is viable as per Hawkins-Simon conditions. - Business Mathematics and Statistics

Sum

The technology matrix of an economic system of two industries is |(0.50,0.25),(0.40,0.67)|. Test whether the system is viable as per Hawkins-Simon conditions.

#### Solution

Technology matrix B = |(0.50,0.25),(0.40,0.67)|

I - B = [(1,0),(0,1)] - [(0.50,0.25),(0.40,0.67)]

= [(0.50,-0.25),(-0.40,0.33)], the main diagonal elements are positive.

|I - B| = [(0.50,-0.25),(-0.40,0.33)]

= (0.50) (0.33) – (-0.40) (-0.25)

= 0.165 – 0.1

= 0.065 (positive)

Since the main diagonal elements of I – B are positive and |I – B| is positive, Hawkins-Simon conditions are satisfied.

Therefore, the given system is viable.

Concept: Input–Output Analysis
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