ECONOMICS (X1)

Preliminary Examination 2015

Time: 2:40 hours

Max. Marks: 60
SECTION: B (SHORT-ANSWER QUESTIONS)

MICROECONOMICS:
Q2: ANSWER ANY 5 QUESTIONS FROM THIS FOLLOWING:
(20)
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

Distinguish between fixed and variable cost.

Why does the law of diminishing return apply specially on Agriculture.
Define explicit cost, implicit cost and opportunity cost with the help of
examples.
State the law of supply with the help of schedule and diagram.
Differentiate between perfect competition and monopoly.
Differentiate between a change in demand and a change in quantity
demanded.
Explain the relation between T.R, A.R and M.R under perfect competition OR
monopoly.
Define and name laws of return and laws of cost.
Define price elasticity of demand and explain any one method of its
measurement in detail.

MACROECONOMICS:
Q3: ANSWER ANY 5 QUESTIONS FROM THIS FOLLOWING:
(20)
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.

What are the main functions of money.

Differentiate between GNP and GDP OR public finance and private finance.
What are the economic benefits of zakat.
Define business cycle? Name the different phases of a business cycle with the
help of diagram.
Describe the canons of taxation given by Adam Smith.
Differentiate between balance of trade and balance of payments OR
domestic and international trade.
Explain the difficulties of measuring national income in Pakistan.
Define public revenue. Write the main sources of public revenue.
SECTION C (DETAILED- ANSWER QUESTIONS)

MICROECONOMICS
NOTE: ATTEMPT ANY 1 QUESTIONS:
(10)

i.
ii.
iii.

State Robbins definition of economics. How it is different from Marshalls

definition.
Explain with the aid of diagrams equilibrium of a firm under perfect
competition during short run.
State and explain the law of diminishing return with the help of a schedule
and diagram.

MACROECONOMICS:
Q5. ATTEMPT ANY ONE QUESTION:
(10)
i.
ii.
iii.

Define national income. Explain the various methods of its measuring

national income.
Explain the quantity theory of money with the equation of exchange in words
of Professor Irving Fisher.
Distinguish between direct and indirect tax. Also describe the advantages and
disadvantages of direct taxes.