SUNIL PANDA COMMERCE CLASSES (SPCC)

(An Ideal Institute for Account’s, Economics & B.st.)

Economics MOCK TEST 2 Hours 40 Marks

Q.1) Define circular flow of income in Two sector economy (2)

OR
Write any 3 differences between final goods and intermediate goods.
Q.2) In an economy S= -100 + 0.25Y is the saving function (where S= Saving, and Y= National income)
and investment expenditure = 8,000, Calculate equilibrium level of income. (2)
OR
Given consumption function C= 150 + 0.80Y (where C = Consumption Expenditure, and Y= National income)
and investment expenditure = 2,000, calculate equilibrium level of income.
Q.3) Explain Saving - investment approach to find out equilibrium level of income is an economy. (2)
Q.4) The following diagram shows distribution of workforce in India. Analyse and compare the nature of
workforce distribution.

Urban workers Rural workers

Self-Employed
15% 9%

43%
56% 35% Regular Salaried
employees
42%

Casual workers

OR
Explain the following in Brief
a) Casualization of workforce
b) Informalization of workforce
Q.5) “India has emerged as a hotspot for Medical Tourism” Defend the statement with valid arguments.
(2)
Q.6) Giving valid reasons explain the following will or will not recorded in estimation of national income
a) financial help to flood victims
b) Employer’s contribution to provident fund
c) Interest on deposit paid by bank to its customer (3)
OR
Define problem of double counting and & Explain how to avoid the problem of double counting ?
Q.7) Explain 3 Tier health care system in India. (3)
Q.8) “Recent Indians have drifted away from the traditional knowledge and practices and caused large
scale damage to environment. “Explain how, adopting the traditional practices can be helpful in achieving
the objective of sustainable development? (3)
Q.9) How infrastructure promotes Skill Formation, Innovation and Inventions explain. (3)
Q.10) Derive Saving curve from consumption curve. (3)
Q.11) Define inflationary gap and write any Three Quantitative measures to remove the inflationary gap.
(5)
OR
What are the main components of aggregate demand in an open economy? Explain
Q.12) Explain the following (1.33 *3)
i) Great leap forward
ii) Pollution control board
iii) Carrying capacity of the environment
Q.13) (a) from the following data calculate national income by (a) income method and (b) expenditure
method. (3)

Particulars Amount
Interest 150
Rent 250
Government final consumption expenditure 600
Private final consumption expenditure 1200
Profits 640
Compensation of employees 1000
Net factor income to abroad 30
Net indirect taxes 60
Net exports (-)40
Consumption of fixed capital 50
Net domestic capital formation 340

(b) Give reasons for the slow growth and re-emergence of poverty in Pakistan. (2)