16 Input output model
ЁЯУК Input-Output Model: 9 Numerical PYQs (UGC NET / SWAYAM)
✔️ рдк्рд░рдд्рдпेрдХ рдк्рд░рд╢्рди рдоें рдкूрд░ा рд╣рд▓ (step-by-step) рдФрд░ рдЕंрддिрдо рдЙрдд्рддрд░ рджिрдпा рдЧрдпा рд╣ै।
рдк्рд░рд╢्рди 1 рджो-рд╕ेрдХ्рдЯрд░ рд╡ाрд▓ी рдЕрд░्рдерд╡्рдпрд╡рд╕्рдеा рдоें Total Output рдХी рдЧрдгрдиा
[UGC NET Paper 2: Economics 3rd Jan 2025 Shift 2]
The input-output matrix for a two-sector economy is given by: \[ A = \begin{bmatrix} 0.25 & 0.40 \\ 0.10 & 0.10 \end{bmatrix} \] If the external demand for the outputs of the two sectors is \( D = \begin{bmatrix} 10 \\ 20 \end{bmatrix} \), what will be the optimal output levels of the two commodities?
Options: (1) 30.20 and 26.40 (2) 28.50 and 20.40 (3) 26.77 and 25.20 (4) 25.50 and 22.20
The input-output matrix for a two-sector economy is given by: \[ A = \begin{bmatrix} 0.25 & 0.40 \\ 0.10 & 0.10 \end{bmatrix} \] If the external demand for the outputs of the two sectors is \( D = \begin{bmatrix} 10 \\ 20 \end{bmatrix} \), what will be the optimal output levels of the two commodities?
Options: (1) 30.20 and 26.40 (2) 28.50 and 20.40 (3) 26.77 and 25.20 (4) 25.50 and 22.20
✅ Solution (Step-by-Step):
Step 1: Formula: \( X = AX + D \) ⇒ \( (I - A)X = D \) ⇒ \( X = (I - A)^{-1} D \)
Step 2: Find \( I - A \):
\[ I - A = \begin{bmatrix} 1-0.25 & 0-0.40 \\ 0-0.10 & 1-0.10 \end{bmatrix} = \begin{bmatrix} 0.75 & -0.40 \\ -0.10 & 0.90 \end{bmatrix} \]
Step 3: Determinant: \( |I - A| = (0.75 \times 0.90) - [(-0.40) \times (-0.10)] = 0.675 - 0.04 = 0.635 \)
Step 4: Inverse: \( (I - A)^{-1} = \frac{1}{0.635} \times \begin{bmatrix} 0.90 & 0.40 \\ 0.10 & 0.75 \end{bmatrix} \)
Step 5: Multiply with D:
\( X_1 = \frac{(0.90 \times 10) + (0.40 \times 20)}{0.635} = \frac{9 + 8}{0.635} = \frac{17}{0.635} = 26.77 \)
\( X_2 = \frac{(0.10 \times 10) + (0.75 \times 20)}{0.635} = \frac{1 + 15}{0.635} = \frac{16}{0.635} = 25.20 \)
\( X_1 = \frac{(0.90 \times 10) + (0.40 \times 20)}{0.635} = \frac{9 + 8}{0.635} = \frac{17}{0.635} = 26.77 \)
\( X_2 = \frac{(0.10 \times 10) + (0.75 \times 20)}{0.635} = \frac{1 + 15}{0.635} = \frac{16}{0.635} = 25.20 \)
✅ Final Answer: 26.77 and 25.20 (Option 3)
рдк्рд░рд╢्рди 2 рд╕्рдЯीрд▓ рдФрд░ рдСрдЯोрдоोрдмाрдЗрд▓ рдЕрд░्рдерд╡्рдпрд╡рд╕्рдеा (Steel-Automobile Economy)
[SWAYAM MOOCS - Mathematical Economics]
An economy consists of two industries - Steel and Automobiles. To produce one-rupee worth of Steel, the Steel industry requires ₹0.2 worth of Steel and ₹0.7 worth of Automobiles. To produce one-rupee worth of Automobiles, the Automobile industry requires ₹0.5 worth of Steel and ₹0.1 worth of Automobiles. The economy has to export ₹15,000 worth of Steel and ₹5,000 worth of Automobiles. How much worth of Steel and Automobiles should be produced to meet the total demand?
An economy consists of two industries - Steel and Automobiles. To produce one-rupee worth of Steel, the Steel industry requires ₹0.2 worth of Steel and ₹0.7 worth of Automobiles. To produce one-rupee worth of Automobiles, the Automobile industry requires ₹0.5 worth of Steel and ₹0.1 worth of Automobiles. The economy has to export ₹15,000 worth of Steel and ₹5,000 worth of Automobiles. How much worth of Steel and Automobiles should be produced to meet the total demand?
✅ Solution (Step-by-Step):
Step 1: Let X = Steel (in thousand ₹), Y = Automobile (in thousand ₹).
\( X = 0.2X + 0.5Y + 15 \) \( Y = 0.7X + 0.1Y + 5 \)
\( X = 0.2X + 0.5Y + 15 \) \( Y = 0.7X + 0.1Y + 5 \)
Step 2: Rearranged: \( 0.8X - 0.5Y = 15 \)
\( -0.7X + 0.9Y = 5 \)
\( -0.7X + 0.9Y = 5 \)
Step 3: Matrix form: \( (I - A) = \begin{bmatrix} 0.8 & -0.5 \\ -0.7 & 0.9 \end{bmatrix} \), \( |I-A| = 0.72 - 0.35 = 0.37 \)
Step 4: \( X = \frac{(0.9 \times 15)+(0.5 \times 5)}{0.37} = \frac{13.5+2.5}{0.37} = \frac{16}{0.37} = 43.235\) thousand ₹
\( Y = \frac{(0.7 \times 15)+(0.8 \times 5)}{0.37} = \frac{10.5+4}{0.37} = \frac{14.5}{0.37} = 39.189\) thousand ₹
\( Y = \frac{(0.7 \times 15)+(0.8 \times 5)}{0.37} = \frac{10.5+4}{0.37} = \frac{14.5}{0.37} = 39.189\) thousand ₹
✅ Final Answer: Steel = ₹43,235 , Automobiles = ₹39,189
рдк्рд░рд╢्рди 3 рдЖрдЧрдд рдЧुрдгांрдХ рдоैрдЯ्рд░िрдХ्рд╕ (Input-Coefficient Matrix) рдмрдиाрдиा
[SWAYAM MOOCS - Mathematical Economics]
Given is an input-output table of an economy (₹ lakhs):
Convert the input-output table into an input-coefficient matrix.
Given is an input-output table of an economy (₹ lakhs):
| Banking | Insurance | Education & Research | Total Output | |
|---|---|---|---|---|
| Banking | 80000 | 8000 | 30000 | 122000 |
| Insurance | 21000 | 6000 | 3000 | 30000 |
| Education & Research | 0 | 0 | 10000 | 110000 |
✅ Solution (Step-by-Step):
Step 1: Formula: \( a_{ij} = x_{ij} / X_j \)
Step 2: Column 1 (Banking): \( a_{11}=80000/122000=0.6557,\ a_{21}=21000/122000=0.1721,\ a_{31}=0 \)
Step 3: Column 2 (Insurance): \( a_{12}=8000/30000=0.2667,\ a_{22}=6000/30000=0.20,\ a_{32}=0 \)
Step 4: Column 3 (Education): \( a_{13}=30000/110000=0.2727,\ a_{23}=3000/110000=0.0273,\ a_{33}=10000/110000=0.0909 \)
✅ Final Answer:
\[ A = \begin{bmatrix} 0.6557 & 0.2667 & 0.2727 \\ 0.1721 & 0.20 & 0.0273 \\ 0 & 0 & 0.0909 \end{bmatrix} \]
\[ A = \begin{bmatrix} 0.6557 & 0.2667 & 0.2727 \\ 0.1721 & 0.20 & 0.0273 \\ 0 & 0 & 0.0909 \end{bmatrix} \]
рдк्рд░рд╢्рди 4 рдХिрд╕ाрди рдХा рд░ाрдЬрд╕्рд╡ (Farmer's Revenue Problem)
[SWAYAM MOOCS - Mathematical Economics]
A farmer sells potatoes (₹30/kg) and tomatoes (₹20/kg). Three customers demand:
Customer 1: 2 kg potatoes + 1 kg tomatoes
Customer 2: 1 kg potatoes + 2 kg tomatoes
Customer 3: 5 kg potatoes + 2 kg tomatoes
Find revenue from each customer and total revenue.
A farmer sells potatoes (₹30/kg) and tomatoes (₹20/kg). Three customers demand:
Customer 1: 2 kg potatoes + 1 kg tomatoes
Customer 2: 1 kg potatoes + 2 kg tomatoes
Customer 3: 5 kg potatoes + 2 kg tomatoes
Find revenue from each customer and total revenue.
✅ Solution (Step-by-Step):
Step 1: Customer 1: \( (30\times2)+(20\times1)=60+20= ₹80 \)
Step 2: Customer 2: \( (30\times1)+(20\times2)=30+40= ₹70 \)
Step 3: Customer 3: \( (30\times5)+(20\times2)=150+40= ₹190 \)
Step 4: Total Revenue = \( 80+70+190= ₹340 \)
✅ Final Answer: C1: ₹80, C2: ₹70, C3: ₹190, Total = ₹340
рдк्рд░рд╢्рди 5 рдЪौрдеा рдЧ्рд░ाрд╣рдХ рдЬोрдб़рдиा (Fourth Customer Addition)
[SWAYAM MOOCS - Mathematical Economics (Extended from Q4)]
(a) Draw the input-output table for the situation given in Q4 and find revenue.
(b) Formulate a mathematical expression to show the relationship between price, quantity and revenue.
(c) If a fourth customer demands 3 kg potatoes + 2 kg tomatoes, calculate total revenue.
(a) Draw the input-output table for the situation given in Q4 and find revenue.
(b) Formulate a mathematical expression to show the relationship between price, quantity and revenue.
(c) If a fourth customer demands 3 kg potatoes + 2 kg tomatoes, calculate total revenue.
✅ Solution (Step-by-Step):
Step (a): Input-Output Table
| Customer | Potatoes(kg) | Tomatoes(kg) | Revenue(₹) |
|---|---|---|---|
| 1 | 2 | 1 | 80 |
| 2 | 1 | 2 | 70 |
| 3 | 5 | 2 | 190 |
| Total | 8 | 5 | 340 |
Step (b): Mathematical expression: \( P_x X_1 + P_y X_2 = Y \) where \( P_x=30, P_y=20 \)
Step (c): Fourth customer: \( 30\times3 + 20\times2 = 90+40 = ₹130 \); New total = \( 340+130 = ₹470 \)
✅ Final Answer (c): ₹130, Total = ₹470
рдк्рд░рд╢्рди 6 Direct and Indirect Requirements (рдк्рд░рдд्рдпрдХ्рд╖ рдПрд╡ं рдЕрдк्рд░рдд्рдпрдХ्рд╖ рдЖрд╡рд╢्рдпрдХрддाрдПँ)
[Based on UGC NET Pattern]
Suppose Leontief input-output coefficient matrix is: \( A = \begin{bmatrix} 0.1 & 0.4 \\ 0.2 & 0.5 \end{bmatrix} \)
Final demand vector \( D = \begin{bmatrix} 1 \\ 1 \end{bmatrix} \). Find the total direct and indirect requirement of the second input to satisfy final demand.
Suppose Leontief input-output coefficient matrix is: \( A = \begin{bmatrix} 0.1 & 0.4 \\ 0.2 & 0.5 \end{bmatrix} \)
Final demand vector \( D = \begin{bmatrix} 1 \\ 1 \end{bmatrix} \). Find the total direct and indirect requirement of the second input to satisfy final demand.
✅ Solution (Step-by-Step):
Step 1: \( I - A = \begin{bmatrix} 0.9 & -0.4 \\ -0.2 & 0.5 \end{bmatrix} \), \( |I-A| = 0.45 - 0.08 = 0.37 \)
Step 2: \( (I-A)^{-1} = \frac{1}{0.37} \begin{bmatrix} 0.5 & 0.4 \\ 0.2 & 0.9 \end{bmatrix} \)
Step 3: \( X = (I-A)^{-1} D = \frac{1}{0.37} \begin{bmatrix} 0.5+0.4 \\ 0.2+0.9 \end{bmatrix} = \frac{1}{0.37} \begin{bmatrix} 0.9 \\ 1.1 \end{bmatrix} = \begin{bmatrix} 2.43 \\ 2.97 \end{bmatrix} \)
✅ Total requirement of second input = 2.97 units
рдк्рд░рд╢्рди 7 Coal and Steel Economy (рдХोрдпрд▓ा рдФрд░ рдЗрд╕्рдкाрдд)
[Based on SWAYAM MOOCS Pattern]
An economy produces only Coal (C) and Steel (S). To produce 1 tonne of Steel: needs 0.4 tonne Steel + 0.7 tonne Coal. To produce 1 tonne of Coal: needs 0.1 tonne Steel + 0.6 tonne Coal. Economy needs 100 tonnes Coal and 50 tonnes Steel for export. Find gross output of Coal and Steel.
An economy produces only Coal (C) and Steel (S). To produce 1 tonne of Steel: needs 0.4 tonne Steel + 0.7 tonne Coal. To produce 1 tonne of Coal: needs 0.1 tonne Steel + 0.6 tonne Coal. Economy needs 100 tonnes Coal and 50 tonnes Steel for export. Find gross output of Coal and Steel.
✅ Solution (Step-by-Step):
Step 1: \( C = 0.6C + 0.7S + 100 \) , \( S = 0.1C + 0.4S + 50 \)
Step 2: Rearrange: \( 0.4C - 0.7S = 100 \) , \( -0.1C + 0.6S = 50 \)
Step 3: \( (I-A) = \begin{bmatrix} 0.4 & -0.7 \\ -0.1 & 0.6 \end{bmatrix} \), \( |I-A| = 0.24 - 0.07 = 0.17 \)
Step 4: \( C = \frac{(0.6 \times 100) + (0.7 \times 50)}{0.17} = \frac{60+35}{0.17}=558.82 \) tonnes, \( S = \frac{(0.4 \times 50)+(0.1 \times 100)}{0.17} = \frac{20+10}{0.17}=176.47 \) tonnes
✅ Final Answer: Coal = 558.82 tonnes, Steel = 176.47 tonnes
рдк्рд░рд╢्рди 8 Hawkins-Simon Conditions – Numerical Verification
[UGC NET Paper 2: Economics 30th Sept 2020]
Verify whether the following system satisfies Hawkins-Simon conditions: \( A = \begin{bmatrix} 0.5 & 0.3 \\ 0.2 & 0.4 \end{bmatrix} \)
Verify whether the following system satisfies Hawkins-Simon conditions: \( A = \begin{bmatrix} 0.5 & 0.3 \\ 0.2 & 0.4 \end{bmatrix} \)
✅ Solution (Step-by-Step):
Step 1: \( I-A = \begin{bmatrix} 0.5 & -0.3 \\ -0.2 & 0.6 \end{bmatrix} \)
Step 2 – Condition 1 (diagonals >0): \( 1-a_{11}=0.5>0 \), \( 1-a_{22}=0.6>0 \) ✓
Step 3 – Condition 2 (determinant >0): \( |I-A| = (0.5 \times 0.6) - [(-0.3)(-0.2)] = 0.30 - 0.06 = 0.24 >0 \) ✓
✅ Final Answer: Both conditions satisfied ⇒ System is viable.
рдк्рд░рд╢्рди 9 Leontief Production Function – Concept Based
[UGC NET Paper 2: Commerce 17th Oct 2020 Shift 1]
In Leontief production function, L (Labour) is considered as:
(1) Free variable (2) Slack variable (3) Binding constraint in the production process (4) Surplus variable
In Leontief production function, L (Labour) is considered as:
(1) Free variable (2) Slack variable (3) Binding constraint in the production process (4) Surplus variable
✅ Solution:
Step 1: Leontief production function = Fixed proportions: \( Q = \min(K/a, L/b) \)
Step 2: Factors are used in fixed ratio, no substitution. The factor that limits output is binding constraint. Labour cannot be replaced by capital → becomes binding constraint.
✅ Final Answer: (3) Binding constraint in the production process
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