Suppose a Simple Economy with Only an Agricultural Industry and a Steel

question 163

Multiple Choice

Suppose a simple economy with only an agricultural industry and a steel industry has the following technology matrix. ​ ​
If surpluses of 15 units of agricultural products and 34 units of steel are desired, find the gross production to the nearest unit of each industry.
​

• A)agriculture = 74, steel = 103
• B)agriculture = 175, steel = 174
• C)agriculture = 174, steel = 175
• D)agriculture = 71, steel = 103
• E)agriculture = 74, steel = 101

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Definitions:

World Systems Theory

A framework for understanding the historical and contemporary social structures of global inequality, delineating countries as core, periphery, or semi-periphery.

Modernization Theory

A theory in sociology that suggests that societies progress from traditional to modern states through processes like industrialization and democratization, improving living standards and social norms.

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to targeted goals and objectives.

Modernization Theory

A theory suggesting that traditional societies will develop economically and socially to become more 'modern', following the patterns of Western societies.