UNIVERSITY OF THE PUNJAB B.A. / B.Sc. Part-I Annual Examination - 2017 Subject: Economics-I PAPER: Basic Mathematics and Micro Economics “NOTE: Attempt FIVE questions in all, selecting TWO questions from Part-I and THREE questions from Part-IL, All questions carry equal marks. PART-I 2 1.) What is meant by a Function? Also explain its different types. 10, 10) b) Make the graphs of the following functions: ) C=100+0.785Y i) UQ =24 tara BP ee es ESL Sibi i) C=1004+0.75Y fi) UQ =246 Q.2 Given the following demand and supply functions: 17,8 - PeaisQ+i0, — SP¥2Q-200 i) Determine the equilibrium level of price and quantity. ii) Ifa tax at a rate of Rs.6/= per unit is imposed, then what will be the effect on price and quar ity? iii) How much tax is received by the Govt. and how much tax is paid by the consumers? Le wen Pion DIE PedsQHO; 5P+2Q-200 Merida ueeh Epridoetyir 4 entettiattnr AF 4 Q3 From the given information: (20, 19) Y=C+ItG, C=85+075¥d, Yd=Y-T Ia=30, c=20, ‘T=20+02, Find out the equilibrium level of National Income mathematically and graphically by using the aggregate demand and aggregate supply approach EMT VAP Lt nL SAL sat ihe Akh Y=C+i+G, C=85+075Yd, Yd=¥-T Ie, G20 T=20n2y. . "BT. ~ - +Q.4.a) What are the maxima and minima? Explain with the help of examples. (10, 10) b) Find out the maxima, minima and point of inflexion of the following function, (if exist) ¥a12- 2x+x> Sore slyerLasgieqia O Eph umerh sweet ibetre lite» (i) ¥=12-2x+x3 PART-IT G.5 What is meant by the term “price mechanism"? Discuss its role in a free enterprise economy. (8, 12) Bat ulinpese site se eetsun” — 0 ~ Q.6 Explain the term "Marginal Rate of Substitution” and show how s consumer is in equilibrium. if the marginal rate of subsitution between two goods equals their prices ratio. Explain with the help of Diagram. (6, 14) UWP Eine tema ye Alig teitbcornS riers Ure si” 1 Bering Eig dndeLoiurbol @&7__ Explain the terms Average Revenue, Marginal Revenue and Total Revenue. Draw the Average and Marginal Revenue curves of a firm in: 6.7.7) ° i) Perfect Competition ii) Monopoly Eb WL Pale LUDA L eS ASL Lorton Sera UrPdribal =e Sita ae Ae Q.8 What is perfect competition? Derive the short-ran supply curve of a perfectly competitive firm. (S, 15) Bitbepl BL Lie ArS tg sled A G9 Whats Oligopoly? Explain the price leadership model of Oligopoly. (5, 15) Lert Ledeitsiniiate se siniie — -§ Q.10 Write mote on any Two of the followings: (10, 10) i) Envelope Curve fi) Income Elasticity of Demand iii) Expansion Path . atk ethos ow Hb beUNIVERSITY OF THE PUNJAB peeeeeeeees: BA./BSe. Part-I Annual Examination - 2017 (Special Exam) ‘Subject: Economies-I PAPER: Basic Mathematics and Micro Economics “ NOTE: _ Attempt FIVE questions in all, selecting TWO questions from Part-I and THREE questions from Part-II, All questions carry equal marks, PART-I Q. 1.2) Differentiate between conditional equation and identity with the help of examples from economics. 10, 10) b,) The cost of manufacturing 10 tables per day is Rs.350/= while it costs Rs.600 to produce 20 tables per duy. Express the relationship as a linear model and draw a graph. Bafta Po IAt terete” rf FE nrg HS te 60041 bef 120 -fig 4 850 Le 10 RLS ere euisopoud Q.2 a) Explain the rules of differentiation with the help of examples. b) Differentiate the following functions: ) y=JEX i y- 22-5 axe é . co Eta Lutein Sey is Eby BFL Pi hien D ¥=fex i y-22=5 Gx+6 Q.3 Given the demand function: P=100-2Q then, 1) Find out marginal revenue function, fi) Find out price and quatity at which total revenue is maximum , iii) Caleulate the elasticity of demand when marginal revnue is zero. a2, 08) ~~ 10,8) 27 P=100-202Kfinb hi or Ue be sadn mie : - RE Ail ne . Odor P.T.O.Q. 4 Given the following total utility function of a consumer: as,5) U=xY+3K+¥ ‘The price of Commodity X and Y are Rs.8/= and Rs.12/= respectively and the budget is Rs. 212. ‘Find out the units of X and Y at which total utility is maximized. Also find out maximum utility. ee KEG . UaXY+3K+¥ APE PAP WSALN hg dss DAK Sale SIGE uIDe BIZ V ASR, bed SEX Het fvi Sobre nie ohio PART-II (Q.5 Whatare the basic economic problems of an economy? How docs price mechanism attempt to solve these problems in a free economy? 12) te VLA ieee Sur terri inyolets’ 0 Q.6 What are Indifference Curves? Show that price effect i a combination of income effect and tution effect. (5,15) eA VAAL Asur ibs dC Etre Gia + Q.7 How a producer achieves an optimum combination of factors of production? Explain with the help of Isoquants, . Qn) oecrtne sii [IU Ptr Q.8 Differentiate between monopoly and monopolistic competition. Low is price determined under monopoly? (8, 12) Net heeAL bin Zod prlenL seabinigialfuinl Q.9- Whats Cartel? How is the price and output determined under Cartel? Illustrate your answer with ‘the help of diagrams. (S, 15) Bearing slp bitte ee feb nels lite eun 8 Q.10 Write notes on any TWO of the followings: 10, 10) i) Kinked demand curve ii) Low-Cost price leadership firm's model fi), Expansion path. wtiwretiee byt oh or Bibs tinegUNIVERSITY OF THE PUNJAB : . a A./ BSc. Part -1 Aunual Examination - 2017 {Clash) Subject: Economics-I TIME ALLOWED: 3 hrs. PAPER: Basic Mathematics and Micro Economics MAX. MARKS: NOTE: Attempt FIVE questions in all, selecting TWO questions from Part-I . and THREE questions from Part-II. All questions carry equal marks, 2 PART-I Q-1 ifthe market demand and supply functions are given as: 884) P= Lor; 5P +2Q=200, 4. Find out the equilibrium price and quantity. {i I the Govt. imposes sales tax ata rate of Rs.6 per unit, then what willbe the effect on equilibrium price and ‘quantity? ‘ii, How much total tax is received by the Govt. and how much tax is paid by the consumers? Publ Bh POSSE 1 P= LQ+10; SP +2Q=200, tepid (i) . MMe He LS steee6h Gi) etn kof uante dL Merk Gii 2.2 What are the main rules for finding out the derivatives? Explain the importance of derivatives in the subject of - (8, 12) Bees lp tevropPrs fublHiLe fersyeio + Economics. 2.3 Given the following national income model 5) Y=C+I+G, C=40+05Yd, Yd=y-T, I=6, G=55, T=10+0.20Y 8) Find out the equilibrium level of nations! income (¥), consumption (C) and tax (1) i) Find out the marginal propensity to consume nnd marginal propensity to sav, eViUeoWF or Y=C+I+G, C=40+05¥d, Yd=¥-T, 1=60, G=55, T=10+0.20Y Sebi SOEMOSAWLGF — -EbstorPintuer -- PTO. .f° Q.4 Given the demand and ‘cost functions of 2 monopolist firm: (10, 10) P=100-0.01Q C= 50Q + 30,000 Q.9 Explain the marginal productivity theory and eritically examine its: ‘assumptions? (12, 08) BaF bPhernPE wi CASE — 4 Q. 10 Write comprehensive notes on any TWO of the following: 0, 10) i) Marginal rate of substitution ii) Dominant firm price leadership model. iii) Kinked Demand Curve. . wtestegsetibion + = webeae cam) uae id duro WOUNIVERSITY OF THE PUNJAB 3 Annual - 2017 mination:— Subject: Economics (Special Exam) TIME ALLOWED: 3 hrs. PAPER: B MAX. MARKS: 100 ‘NOTE: Attempt FIVE Questions in all selecting THREE questions from Part-I ‘and TWO questions from Part-II. All questions carry equal marks. PART-I Define Saving Function. Explain Average Propensity to Save (APS) and MarginalPropensityto = 5,15, Save (MPS) with schedule and diagram, LAE bat iPhys colon (MPS) ogee PAPS)efuikrbsly Ka Seg hi ty Differentiate between Aggregate Demand and Effective Demand. To what extent 812 National Income and employment level is affected from Effective Demand? Se bn Lo Pr boat TEL EWALD rahe 03. Explain Multiplier Effect, Describe its assumptions and limitations. 866 Uoyrentelol yey Serta o4 04. Derive1s Curve. Why is it horizontal and vertical? 10,10 tetnudiots Pty Mousis\ ast 05 Describe the tools of Monetary Policy. Explain obstacles in achieving its success in developing countries. Ds fort SUMS RELVES SA Or tHyidrL evry 06 Explain and illustrate Hacksher-Oblin Model of international trade. Describe its defects. 12,8 Lae oS ELE rlertin SB PAL 2 MBN PART-II {07 Define Economic Development. How is Zconomie Development measured by quantitative and qualitative methods? : . 515 te Se CMe Ste va Burin caAsdrser 08 Describe the role of Agriculture Sector in industrial development and role of industrial 10,10 sector in agriculture development. oe a ope PEs imee cine” 09 Expisin Economie Planning, Describe its importance fora developing country like Pakistan, 515 UfowoaS Lb bic Keo lig Foe 10 Describe the need of foreign ald in Pakistan. Suggest measures to decrease dependence on it. _ too LA HEL LA gy Aloe nAbun tor