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 the difference between Law of Demand and Elasticity of Demand? (08)
Q.1 (b). Differentiate between (12)
i. Cross Elasticity of Demand
ii. Price Elasticity of Demand
iii. Income Elasticity of Demand

Q.2. Differentiate between the following (20)
i. Indifference Curve and ISO-Product Curve.
ii. Consumer’s Budget Line and ISO-cost line.
iii. Income Consumption Curve and Expansion Path Curve.
iv. Price Consumption Curve and Factor Price Curve.

Q.3. Examine the effects of changes in demand and supply conditions on the equilibrium price of a firm under: (20)
i. Market Period
ii. Short Period
iii. Long Period

Q.4. Write short notes on any TWO of the following. (20)
1. Conditions of Perfect Competition
2. Laws of Returns
3. Average and Marginal Cost
4. Diseconomics of Scale.

MACRO ECONOMICS

Q.5 (a). Distinguish between Consumption and Consumption Function. (08)
Q.5 (b). What factors influence Consumption Function? Discuss (12)

Q.6 (a). Define the term investment and describe its various kinds. (10)
Q.6 (b). With the help of Factors Affecting Investment, Drew Investment Demand Curve. (10)

Q.7. Explain the principle of Effective Demand. Draw diagram to explain your answer. (20)

Q.8. Write short notes on any TWO of the following. (20)
1. IS and LM Curves
2. APC and MPC
3. Multiplier
4. Tools of Monetary Policy

ECONOMIC SYSTEM

Q.9. In your opinion which Economic System is the best Economic System. Give argument. (20)

Q.10. Distinguish between Modern Banking and Islamic Banking System. (20)