Take five goods or services used by your family and construct a Consumer Price Index for your family based on these five goods or services.

How is Administrative Price Mechanism different from Minimum Support Price?

Read the sixth paragraph under the heading of Role of Government in Regulating Prices and answer the question: How does APM affect the government revenue? Discuss.

Write true or false against the statement

a. Inflation increases the standard of living of the people.

b. Value of money is shown by the changes in purchasing power.

c. Change in cost of living does not affect the standard of living of pensioners.

d. Central government workers are compensated for inflation by a rise in DA.

e. WPI measures the changes in the price level of only consumer goods.

The following table shows the Wholesale Price Indices of industrial goods. Prepare a line diagram and answer the questions that follow:

a. Which commodity’s price rose sharply over the years?

b. What could be the reasons for a slow rise in cotton cloth and fertilisers?

c. Does the government play any role of any of the commodities? How?