Paper# 1
[OBJECTIVE]
Subject: Fundamentals of Economics
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. Which of the following is not the assumption of perfect competition?
Large number of firms b. Product differentiation
Free entry d. Homogenous Product
2. According to law of Supply: As prices fall, ceteris paribus
Demand increases b. Supply decreases
quantity demanded decreases d. quantity Supplied decreases
3. Human Wants are
Few b. Finite
Unlimited d. One thousand
4. The best level of output for a perfectly competitive firm is given by the point where
MR = AC b. MR = MC
MR exceed MC by the greatest amount d. MR = MC and MC is rising
5. AR curve under Monopolistic competition represents
Supply curve b. Demand curve
Income curve d. Cost curve
6. Income Elasticity of normal goods is
E>O b. Ex<o
E=1 d. E= ∞
[SUBJECTIVE]
Subject: Fundamentals of Economics
Time Allowed: 2 Hrs. 45 Min
Maximum Marks: 50
NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED
Part-II Briefly explain them in two lines! (20)
Q#1. Enlist Factors of production
Q#2. Enlist the determinants of Supply
Q#3. Income Elasticity of demand
Q#4. Price elasticity of demand
Q#6. Law of diminishing-marginal utility
Q#6. Marginal Cost
Q#7. Monopoly
Q#8. What is GDP
Q#9. Monetary Policy
Q#10. Enlist the phases of Business Cycle
Part-III Give Brief Answers (30)
Q#3 a. Briefly state the basic characteristics of Monopolistic competition1
b. Discuss the Equilibrium of a firm under monopolistic competition using MR=MC approach
Q#4. Explain of the following
a. Price elasticity of Demand
b. Cross elasticity of demand
Q#5
a. What is monetary policy?
b. Discuss objective of monetary policy
Paper# 2
[OBJECTIVE]
Subject: Fundamentals of Economics
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. How many factors of production are?
3 b. 4
5 d. 6
2. Reward of Labor is
Rent b. Interest
Wages d. Profit
3. The ability and willingness to purchase a good is
Law of supply b. Demand
Supply d. Elasticity
4. Oven is a commodity
Perishable b. Durable
Expensive d. not for sale
5. The level! of output for a perfectly competitive firm is determined where
MR=AC b. MR=MC where slope of MC is greater than MR
MR exceeds MC by the greatest amount d. MR=MC and MC is rising
6. per capital income is
Total income b. personal income
National income d. Average Income
[SUBJECTIVE]
Subject: Fundamentals of Economics
Time Allowed: 2 Hrs. 45 Min
Maximum Marks: 50
NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED
Part-II Briefly explain them in two lines! (20)
Q#1. Explain the elasticity of demand
Q#2. What is inflation?
Q#3. Phases of Business Cycle
Q#4. What are assumption of monopoly
Q#5. What Factors of production?
Q#6. Explain the term Marginal Revenue
Q#7. What is unemployment rate
Q#8. Describe law of supply
Q#9. Define the Fiscal Policy
Q#10. Gross Domestic Products
Part-III Answer the questions in Detail (30)
Q#4 Explain of the following
a. Income elasticity of Demand
b. Cross elasticity of demand
Q#5 a. Briefly state the basic characteristics of Monopolistic competition
b. Discuss the Equilibrium of a firm under Monopolistic competition using MR=MC approach.
Q#6 a. What is monetary policy?
b. Discuss the Objective of monetary policy briefly.
[OBJECTIVE]
Subject: Fundamentals of Economics
Time Allowed: 15 Minutes
Max 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 are not allowed. (10)
Market value of all final goods and services produced by a nation during a year is definition of;
a) National Income b) Gross National Product
c) Net National Product d) consumption
Although people may satisfy their basic needs there is always something more that they want. To what basic economic issue (problem) does this statement refer?
a) exchange b) income distribution
c) market forces d) scarcity
What according to the definition of opportunity cost, is sacrificed when a decision is taking?
a) an identical alterative b) any possible alternative
c) the least valuable alternative d) the next best alternative
Which of the following is a factor of production?
a) the payment of interest on a bank loan
b) the profit declared by a company in its annual report
c) the skill of the managers of a business
d) none of the three
Which statement about fixed costs is correct?
a) they exist only in the long run
b) they include raw material and direct labor costs
¢) they increase at the same rate as output
d) they must be paid even if there is no output
A firm under perfect competition is;
a) price maker b) price breaker
c) price taker d) price shaker
When cross elasticity of demand for A and B is positive number, one can conclude that;
a) the goods are cheaper b) the goods are inferior
c) the goods are substitutes d) the goods are complements
In monetary policy, open market operation refers to;
a) Buying and selling of foreign currencies
b) Buying and selling of govt. securities
c) To keep banks open 24 hours on a day
d) Buying and selling of goods in free market
For international trade when a currency is exchanged for another are called;
a) Bank rate b) Exchange rate
c) Exchange control d) Foreign exchange
[SUBJECTIVE]
Subject: Fundamentals of Economics
Time Allowed: 2 Hours 45 Minutes
Max Marks: 50
NOTE: ATTEMPT THIS (SUBJECTIVE) ON SEPARATE ANSWER SHEET PROVIDED
Part-II Give Short Answers, Each question carries equal marks. (20)
Q#1: Differentiate between Microeconomics and Macroeconomics.
Q#2: Explain the profit maximizing principle for a firm.
Q#3: In cardinal utility approach, explain the saturation point for the consumer.
Q#4: Define the Law of Equi-Marginal Utility and write down any two assumptions of this Law.
Q#5: Define the Supply and The Law of Supply?
Q#6: Write any four uses (importance) of study of Economics.
Q#7: In market structure, differentiate between Imperfect Competition and Perfect Competition.
Q#8: Define Concepts of NNP (Net National Product), NI (National Income) and PDI (Personal Disposable Income).
Q#9: Write the tools/instruments of Monetary Policy.
Q#10: Define open market operations with reference to monetary policy.
Part-III Give Brief Answers, Each question carries equal marks. (30)
Q#3: (a) Define the law of Demand.
(b) Explain the Law of Demand with the help of Table and Diagram.
(c) Explain the rise in Demand and fall in demand.
Q#4: (a) Define different short run cost concepts.
(b) Explain the salient features of short run cost curves
(c) Discuss relationship between average cost (AC) and marginal cost (MC) curves.
Q#5: (a) Write the concepts of inflation and unemployment as problems of Macroeconomics.
(b) Define the Business Cycles. Also explain in detail the phases of business cycle.
