Worksheet for internal 1

Instructions
● The worksheet carries 20 marks. Your score will be scaled down to 10 after
evaluation.

● All questions are compulsory. Marks for each question are given on the right.

● You are required to submit a Word document, with the file name “Your full
name_CC03 worksheet”. For example, “Sanjeev Vasudevan_CC03 worksheet”.

● The answers should include all the calculations and steps, explicitly written
wherever required. All units are to be explicitly mentioned. Missing units will
attract penalty of 0.5 per mistake. All charts should have an appropriate title, and
labels on the X and Y axes.

● You have to submit the document on Google classroom assignment (and NOT
through email) before 6 PM, on 06/09/2024. Early entries are desirable. Late
submissions will be considered, but with a penalty of 50% marks [flat discount].
No requests to revoke the penalty will be entertained.

● You are expected to complete the worksheet individually. Instead, that is

preferred. However, you can also collaborate. In such cases, you are required to
mention the names of the people you have collaborated with, on the last page of
the document.

● You are not permitted to seek help from the seniors.

1. Use the information in the table and answer the following questions: P represents the
wholesale price of a commodity. For example, P1 is the wholesale price of commodity 1.
Note that commodities are in numbers, from 1 to 6. In all years, they are assumed to be
produced in fixed quantities, as mentioned in red colour. Assume that 1, 3, and 5 are
 manufacturing goods and 2, 4, and 6 are agricultural goods. (3 + 4 + 3
=10)

Commodities 1 2 3 4 5 6
Quantities 100 160 310 400 39 221
Period P1 P2 P3 P4 P5 P6
2000 31 43 26 13 11 38
2001 31.5 43.5 26.5 13.5 11.5 38.5
2002 32 44 27 14 12 39
2003 32.5 44.5 27.5 14.5 12.5 39.5
2004 33 45 28 15 13 40
2005 33.5 45.5 28.5 15.5 13.5 40.5
2006 34 46 29 16 14 41
2007 34.5 46.5 29.5 16.5 14.5 41.5
2008 35 47 30 17 15 42
2009 35.5 47.5 30.5 17.5 15.5 42.5
2010 36 48 31 18 16 43
2011 36.5 48.5 31.5 18.5 16.5 43.5
2012 37 49 32 19 17 44
2013 37.5 49.5 32.5 19.5 17.5 44.5
2014 38 50 33 20 18 45
2015 38.5 50.5 33.5 20.5 18.5 45.5
2016 39 51 34 21 19 46
2017 39.5 51.5 34.5 21.5 19.5 46.5
2018 40 52 35 22 20 47
2019 40.5 52.5 35.5 22.5 20.5 47.5
2020 41 53 36 23 21 48
2021 41.5 53.5 36.5 23.5 21.5 48.5
2022 42 54 37 24 22 49
2023 42.5 54.5 37.5 24.5 22.5 49.5
2024 43 55 38 25 23 50

a. Calculate the Wholesale Price Index (WPI) for the economy. Assuming 2000 as
the base year, calculate the rate of inflation for all possible year, and plot the
values in a chart to show the trend. (Hint: the calculation is similar to how it is
done for CPI).

b. compute the WPI for agricultural and manufacturing goods separately.

Consider 2000 as the base year. Calculate the rate of inflation for all possible
years, separately for agricultural and manufacturing commodities. Plot and
comment on the trends of agricultural and manufacturing inflation.
 c. Compute the intersectoral terms of trade for all years. Comment and justify
whether the manufacturing sector’s income is rising or not.

2. Find the Input -Output (IO) table for the MSE Republic shared below. Answer the
questions followed. Values are in Rs Crores. (3 + 3
+ 4 =10)

Input Output Table

Agriculture Industry Services Total
Agriculture 303 229 - 625
Industry 196 405 - 866
Services - - - -

a. Interpret the all values from the table in their absolute forms (ignore the empty
cells). The interpretation should be explicitly carried out for all four values,
separately.

b. Construct an input coefficient matrix based on the information available for the
given cells (ignore the empty cells). You are required to show the calculation
with all details.

c. Interpret all the input coefficients separately (please note that your wordings
determine the marks).