A Simple Economy Has an Electronic Components Industry and a Computers

question 175

Multiple Choice

A simple economy has an electronic components industry and a computers industry. Each unit of electronic components output requires inputs of 0.3 unit of electronic components and 0.2 unit of computers. Each unit of computer industry output requires inputs of 0.8 unit of electronic components and 0.1 unit of computers. Write the technology matrix for this simple economy. (E, electronics components industry; C, computer industry) ​

Understand the relationship between risk and correlation in portfolio management.

Learn to calculate variance of financial instruments.

Identify and understand the criteria for evaluating capital investments.

Understand the process of decision-making under uncertainty.

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Definitions:

Bond Buyer

An investor or entity that purchases bonds, which are debt securities issued by corporations or governments.

Interest Rate

It refers to the profit or cost of borrowing capital, typically expressed as an annual percentage.

Sound Finances

A term describing a stable and healthy financial condition characterized by manageable levels of debt and efficient budgeting.

Long-Term Bond

A long-term bond is a debt security with a maturity period typically longer than 10 years, offering interest payments over an extended time.