Basic Economics Past Papers

[OBJECTIVE]

Subject: Basic Economics-I

Time Allowed: 15 Min

Maximum Marks: 10

NOTE: Attempt this Paper on this Question Sheet only. Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.

Part-I Encircle the right answer, cutting and overwriting is not allowed. (1×10=10)

1. Principles of Economics written by:

(a) Keynes (b) Adam Smith

(e) Marshal

2. Micro Economics is the study of:

(a) General unemployment and inflation

(b) Individual economics deals units of economy

(d) Welfare of international community

(e) None of them

3. The relationship of Price and demand is called:

(a) Law of Demand (b) Law of Supply

4. Who described economics as “Science of Wealth”?

(a) Pigou (b) Adam Smith

5. Which good is heaving elasticity more than Unity?

(a) Car (b) Flour

6. Price of product is determined in a free market by:

(a) Demand for the product (b) Supply of the product

[SUBJECTIVE]

Subject: Basic Economics-I

Time Allowed: 2 Hrs. 45 Min

Maximum Marks: 50

NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED

Part-II Give short answers! (20)

Q#1. Write down the definition of economics given by Professor Robbins.

Q#2. What do you mean by elasticity of demand?

Q#3. Differentiate between law of supply and elasticity of supply.

Q#4. Write down four assumptions of the “Law of Supply”.

Q#5. Describe four causes of fall in demand?

Part-III Questions with brief answers (30)

Q#1. Define law of Diminishing Marginal Utility with growth and its assumption.

Q#2. Write the comparison of the definitions of Marshall and Robbins.

Q#3. Write a note on any ONE of the following:

a) Income Elasticity of demand

b) Point elasticity

[OBJECTIVE]

Subject: Basic Economics-II

Time Allowed: 15 Minutes

Max Marks: 10

Part-I Encircle the right answer, cutting and overwriting are not allowed. (10)

Which of the following is not a determinant of demand for good X:

A) Average income. B) Population.

C} Tastes and preferences. D) Price of good X

We get fewer and fewer additional units as we add more and more units of the inputs to production process. We call this fact the:

A) Law of diminishing marginal utility. B) Law of diminishing returns.

C) Law of supply. D) Law of demand.

When demand is price-inelastic, a price decrease will result in:

A) An increase in total cost B) An increase in total revenue

C) A decrease in total cost D) A decrease in total revenue

The market structure where no firm have any degree of power is

A) Perfect competition B) Monopoly

C) Monopolistic competition D) All of the above

Which of the following costs always increase as output increase?

A) Average variable cost B) Marginal cost

C) Average fixed cost D) Fixed cost

The total cost (TC) of producing shoes of a shoe factory (Q) is given as: TC = 100 + 10Q. What is the marginal cost?

A) 100 B) 10Q

c) 10 D) 5 +(200/Q)

A profit maximizing monopolist will charge the price:

A) That is equal MR B) Found on the demand curve at the level of Q where MR=MC

C) Found the AC curve at the level of Q where MR=MC D) None of the above

A market is said to be in equilibrium when: .

A) Demand equals output B) There is downward pressure on price

C) The amount consumers wish to buy at the current price equals the amount producers wish to sell at that price

D) All buyers are able to find sellers willing to sell to them at the current price

The difference between the economic and accounting costs of a firm are the:

A) Accountant fees B) Corporate taxes on profits

C) Sunk costs incurred by the firm D) Opportunity costs of the factors of production that the firm owns

Which of the following is considered a fixed input to production in the short-run?

A) Labor B) Capital

C) Money D) Stock

[SUBJECTIVE]

Subject: Basic Economics-II

Time Allowed: 2 Hours 45 Minutes

Max Marks: 50

NOTE: ATTEMPT THIS (SUBJECTIVE) ON SEPARATE ANSWER SHEET PROVIDED

Part-II Give Short Answers, Under 3 lines. (20)

Q#1: Large scale production.

Q#2: Law of variable proportion.

Q#3: Relation between Average and marginal revenue.

Q#4: TR-TC approach of profit maximization.

Part-III Give Long Answers, Each question carries equal marks. (30)

Q#3: What are the advantages of producing at small scale?

Q#4: Explain the short run equilibrium of the firm under perfect competition.

Q#5: Explain the equilibrium of the firm for a monopolist firm.

[OBJECTIVE]

Subject: Basic Economics-III

Time Allowed: 10 Minutes

Maximum Marks: 10

Part-I Encircle the right answer, cutting and overwriting is not allowed. (1×10=10)

To determine the correct level of GNP, it is necessary to:

a) Add up all savings b) To count all imports

c) To add up the value of semi-finished goods

d) To add up the values of goods and services during one year

If government increases taxes, private savings.

a) Decreases b) Do not change

c) Increases d) A and C

The fiscal policy is concerned with:

a) Commercial Banks b) Central Bank

c) Government d) All of the above

The theory of comparative cost was presented by:

a) Marsha 1 b) Ricardo

c) Keynes d) Hicks

Says law in money market is:

a) Not applicable b) Applicable

c) None of the both d) A and B

The consumption expenditures which are not influenced by income are:

a) Autonomous consumption b) Induced consumption

c) Durable consumption d) None of the above

The steps taken by central bank to central money supply are:

a) Commercial policy b) Monetary policy

c) Fiscal policy d) A and C

During deflation Central Bank will:

a) Purchase securities b) Sell securities

c) Waste securities d) None of the above

If government wants to reduce the use of petrol, it will:

a) Tax on petrol be decreased b) Tax on petrol be increased

c) Subsidies on petrol be given d) B and C

If government wants to remove deficit on BOP, it should follow:

a) Neutral Fiscal Policy b) Easy Fiscal Policy

c) Strict Fiscal Policy d) None of the above

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