B-COM PART 1: ECONOMICS – IMPORTANT QUESTIONS BY KHALID AZIZ

ECONOMICS – IMPORTANT QUESTIONS BY KHALID AZIZ

Micro Economics 1) How indifference curve technique helps a consumer to achieve equilibrium position? Discuss properties of indifference curve. 2) Define perfect competition and explain its assumptions. Explain with help of a diagram a firm’s equilibrium condition in the short run, under perfect competition. 3) Price effect is the combination of income effect and substitution effect. Explain and illustrate. 4) Compare monopoly with monopolistic competition. Explain with the help of diagrams, the short run equilibrium of a firm under monopolistic competition. 5) Explain law of diminishing returns to scale. Why this law is important for agricultural sector? 6) Distinguish between micro and macro approach to economic analysis and also discuss the need for combining the two approaches. 7) Explain the concept of elasticity of demand. Differentiate between (i) Income elasticity of demand (ii) Price elasticity of demand (iii) Cross elasticity of demand 8) Write notes on a) Law of diminishing marginal utility. b) Internal & External Economies c) Laws of increasing & constant return to scale. d) Point & Arc elasticity of demand e) Change in quantity demanded and change in demand f) Price Discrimination g) Marginal cost and Average cost

Macro Economics 1) Differentiate between (i) GNP & GDP (ii) National income at market price and National income at factor cost. (iii) Personal income & Disposable income 2) Define National Income, what is the importance of study of national income? 3) Distinguish between consumption and consumption function. Explain the factors which determine the propensity to consume. 4) Distinguish between APS and MPS. What are the factors that determine saving in an economy? 5) Short notes a) Autonomous and Induced Investment b) Marginal efficiency of capital c) Multiplier d) Acceleration e) Objectives of fiscal policy f) Objectives of monetary policy g) Phases of trade cycle

Economic Systems 1) Give salient features of Islamic economic system and compare it with capitalism and socialism. 2) Explain the importance of zakat in the process of distribution of wealth in Islamic state.