Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th

# The technology matrix of an economic system of two industries is |0.500.300.410.33| 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 |(0.50,0.30),(0.41,0.33)| Test whether the system is viable as per Hawkins Simon conditions.

#### Solution

Technology matrix B = |(0.50,0.30),(0.41,0.33)|

I - B = [(1,0),(0,1)] - [(0.50,0.30),(0.41,0.33)]

[(0.50,-0.30),(-0.41,0.67)], the main diagonal elements are positive.

|I - B| = [(0.50,-0.30),(-0.41,0.67)]

= 0.335 – 0.123

= 0.212, 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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#### APPEARS IN

Chapter 1 Matrices and Determinants
Exercise 1.4 | Q 1 | Page 19
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