#SHAH_COMMERCE_INSTITUTE IMPORTANT QUESTIONs FOR 2014 B.COM-I #ECONOMICS By Sir #Atif 1. (a) Explain the concepts of Micro and Macro Economics and describe their importance in formulation of economic policies. (b) What is “Least cost combination of factors”? How the Least Cost Factor Combination is achieved from Iso Quant graph? Explain. 2. (a) Difference between: • Price Elasticity of Demand • Cross Elasticity of Demand • Income Elasticity of Demand (b) How the price elasticity of Demand is measured? Explain 3. (a) Price effect is the combination of Substitution effect and Income effect. Explain with the help of Indifference Curve Analysis. (b) Using Indifference Curve technique, explain the effect of a change in consumer’s Income on the quantities purchased of Normal and Inferior goods. 4. (a) Explain the effect of changes in demand and supply conditions on the equilibrium price of a firm under: • Market Period • Short Period • Long Period (b) What do you understand by Market Price? 5. Write Short Note of the Following: • Positive and Normative Economics • Internal and External Economics of Scale. • Law of Variable Proportions. • Relationship between AC and MC • Characteristics of Perfect Competition. • Distinguish between a Firm and an Industry. 6. (a) National Income Statistics is the Index of the health of a country’s economy. Elucidate. (b) Define National Income and explain the Circular Flow of National Income with the help of “Circular Flow diagram”. 7. (a) Calculate the value of Multiplier and its effects on National Income when Investment is increased by Rs.150,000/- under the following conditions: • MPC = 0.85 • MPS = 0.20 (b) Distinguish between consumption and consumption function? Also explain the factors which determine the propensity of consume. 8. (a) With the help of factors affecting Investment. Draw Investment Demand Curve. (b) Define the term Investment and describe its various kinds. 9. (a) What is Effective Demand? How does it influence the level of output and Employment in an Economy? Explain with the help of diagram. 10. (a) Define and illustrate the concept of Inflationary and Deflationary Gap. How these gaps can be eliminated? Discuss. (b) Explain with the help of suitable schedule and diagram the concepts of Multiplier. 11. Write short notes on any TWO of the following: • Acceleration Principle. • Explain in detail any one method of measurement of National Income. • Determinants of Consumption. • Objectives of Fiscal Policy. 12. (a) Describe the aims and objectives of Islamic Economic System. (b) Islamic Economic System is superior to all other Economic System. 13. (a) Distinguish between Modern Banking and Islamic Banking. (b) Discuss in detail the different methods of Islamic Financing
Posted on: Sat, 20 Dec 2014 19:09:15 +0000
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