[OBJECTIVE]
Subject: Labor Economics
Time Allowed: 15 Minutes
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. (10)
1. If there is cyclical unemployment in the economy, the Govt. might.
a) Increase interest
b) Cutincometax
c) Encourage saving
d) Reduce Govt. spending
2. The movement of a worker from one occupation to another in the same grade is:
a) Vertical mobility
b) Horizontal mobility
c) Geographical mobility
d) None of them
3. Union leaders are in a better position to bargain for higher wage if demand for labor is:
a) Elastic
b) Inelastic
c) Very large
d) Permanent
4. The Philips Curve shows relationship between inflation and what?
a) Rate of growth
b) Rate of price
c) Balance of trade
d) Unemployment
5. Sometime the supply curve of labor bends:
a) Downward
b) Upward
c) Backward
d) Firstly upward & then downward
6. The situation in which prices and unemployment increases
a) Inflation
b) Deflation
c) Stagflation
d) Demand pull inflation
7. In a competitive market, the demand curve for labor is given by which one of the followings:
a) Marginal revenue product
b) Marginal cost
c) Total revenue product
d) Marginal physical product
8. Every factor of production gets rewards equal to:
a) Value of average product
b) Total revenue
c) Value of total product
d) Value of marginal product
9. If marginal product of labor (MPL) rises because of new technology:
a) Wages will rise
b) Wages will fall
c) May rise or fall
d) Wages will unaffected
10. Fixing of minimum wages:
a) Raises demand for labor
b) Raises profits
c) Causes unemployment
d) Is welcomed by employers
[SUBJECTIVE]
Subject: Labor Economics
Time Allowed: 2 Hour and 45 Minutes
Maximum Marks: 50
NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED.
Part-II Give Short answers, each question carries equal marks. (20)
Q#1: Wage rigidity
Q#2: Labour Market indicators
Q#3: Minimum wage law
Q#4: Backward bending supply of Labour Curve
Q#5: Trade Unions.
Part-III Give detailed answers, each question carries equal marks. (30)
Q#1: Define Philips Curve. HoW is it related to inflation, unemployment & wages?
Q#2: Evaluate the effects of functioning of labour market due to discrimination by gender, race & ethnicity.
Q#3: Discuss the major causes of unemployment in Pakistan.
