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. Explain the concepts of Micro and Macro Economics and describe their importance in formulation of economics policies.

Q.2 (a). What is meant by consumer’s equilibrium? Explain consumer’s equilibrium with the help of indifference curve approach.
Q.2 (b). Describe the characteristics of indifference curve.

Q.3 (a). Distinguish between Monopoly and Perfect Competition.
Q.3 (b). Explain with the help of diagrams the short run equilibrium of a firm under Perfect Competition.

Q.4. Write short notes on any TWO of the following.
1. Least Cost Combination of Factors.
2. Price Discrimination
3. Point and Arc-Elasticity of Demand
4. Relationship between Average and Marginal Cost Curves.

MACRO ECONOMICS

Q.5 (a). Define National Income and explain its various concepts.
Q.5 (b).Name the various methods of measurement of National Income and explain in detail any one of them.

Q.6. How the equilibrium level of National Income is determined? Does equilibrium always take place at the full employment level? Discuss.

Q.7 (a). Explain the concepts of MULTIPLIER.
Q.7 (b). Computer the value of Multiplier and its effects on National Income when investment is increased by Rs. 20,000/= under the following situations.
i. MPS = 1/5
ii. MPC = .25

Q.8. Write a short note on any TWO of the following.
1. Phases of Trade Cycle
2. MEC
3. Kinds of Unemployment
4. Monetary Policy

ECONOMIC SYSTEM

Q.9. Define Economics System and explain in detail basic problem of an economy?

Q.10. Islamic Economic System is superior that Capitalism? Explain.