Which of the following are the conditions of economic viability and technological feasibilty of…
The Hawkins–Simon conditions (1949) require the leading principal minors of the matrix \((I - A)\), where \(A\) is the input-coefficient matrix, to be positive. When they…
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Which of the following are the conditions of economic viability and technological feasibilty of Leontief’s static model ?
Answer and explanation
Correct answer B
The Hawkins–Simon conditions (1949) require the leading principal minors of the matrix , where is the input-coefficient matrix, to be positive. When they hold, the static Leontief system yields a non-negative output for any non-negative final demand, so the economy is technologically feasible and economically viable. Kuhn–Tucker conditions belong to constrained optimisation, and von Neumann–Morgenstern refers to expected utility and game theory, not to input–output viability.
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UGC NET Economics