B.COM I Economics

INSTRUCTIONS
Attempt FIVE questions selecting TWO from Micro Economics, TWO from Macro Economics and ONE from Economic System. Marks are indicated against each question.

MICRO ECONOMICS

Q.1 (a). What is meant by Elasticity of Demand? Explain its various kinds. (10)
Q.1 (b). Describe the concept of Point and AVC Elasticity of Demand. (10)

Q.2. Discuss consumer’s equilibrium with the help of indifference curve Technique. (20)

Q.3 (a). Define the following terms: (10)
i. Market
ii. Perfect Competition Market
iii. Monopoly
iv. Oligopoly
v. Monopolitic Competition

Q.3 (b). Explain short run Equilibrium of a firm under Monopoly. (Use Diagram). (10)

Q.4. Write short notes on any TWO of the following: (20)
1. Substitution Effect
2. Law of Increasing Return
3. Production Possibility Curve
4. ISO-quarts and ISO-cost Curves.

MICRO ECONOMICS

Q.5. Define National Income and differentiate between: (20)
i. GNP and GDP
ii. NNP and NDP
iii. National Income at Market Price and National Income at Factor Cost
iv. PI and PDI

Q.6. Differentiate between the following. (20)
i. Gross Investment and Net Investment
ii. Induced Investment and Autonomous Investment
iii. Marginal Efficiency of Capital and Rate of Interest
iv. Multiplier and Acceleration Price

Q.7. Explain the concept of “Propensity to consume”. Bring out the functional relationship between income and consumption with the help of diagram. (20)

Q.8. Write short notes on any TWO of the following. (20)
1. Full Employment
2. Say’s Law of Markets
3. Trade Cycle
4. Fiscal Policy

ECONOMIC SYSTEM

Q.9. What is meant by Economic System? Describe the central problems of an Economy. (20)

Q.10. Discuss in detail the different Modes of Islamic Financing. (20)