ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Economics)

WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.

Course: Economics (402) Semester: Autumn, 2021

Level: BS
Please read the following instructions for writing your assignments. (AD, BS, BEd,
MA/MSc, MEd, MPhil and PhD)
1. All questions are compulsory and carry equal marks but within a question the
marks are distributed according to its requirements.
2. Read the question carefully and then answer it according to the requirements of the
questions.
3. Handwritten scanned assignments are not acceptable.
4. Upload your typed (in Word or PDF format) assignments on or before the due date.
5. Late assignments can’t be uploaded on LMS.
6. Your own analysis and synthesis will be appreciated.
7. Avoid irrelevant discussion/information and reproducing from books, study guide
of allied material.
Total Marks: 100 Pass Marks: 50
ASSIGNMENT No. 1
(Units 1-4)
Q.1 Write a note on the subject matter and scope of economics in detail. (20)
Q.2 What is law of satiable wants? Also write a note on the assumptions and exceptions
of this law in detail. (20)
Q.3 What is meant by indifference curves? Explain with the help of diagram. Also
write a note on the properties of indifferences curves. (20)
Q.4 What is meant by equilibrium of a firm? Explain the relationship between total cost
and total revenue in a case of equilibrium of a firm under perfect competition with
the help of a table and diagram. (20)
Q.5 Write a note on the following: (5+5+5+5=20)
a) Price elasticity of demand.
b) Demand curve in case of inferior good case.

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 c) Income effect of a price changed.
d) Equilibrium of a consumer and money.

Total Marks: 100 Pass Marks: 50

ASSIGNMENT No. 2
(Units 5-8)
Q.1 Explain the concept of market. Also write an extensive discussion on the types
of market with respect to their (a) geographical location (b) time (c) competition
(d) commodity. (20)

Q.2 Explain the equilibrium of a firm under monopolistic competition with the help of
diagrams in the short- run and long- run. (20)

Q.3 Define organisation and discuss its need and importance. Also enumerate and
explain functions of an entrepreneur and the different forms of orginisation in
detail. (20)

Q.4 What is meant by the theory of marginal productivity? Also explain the
relationship between factor supply and their marginal productivity with the help of
a table and diagram related to total, marginal and average products. (20)

Q.5 What is an equation? Discuss different types. Also find the value of x from the
following equations. (20)
i) 4x + 3x = 40 + 30 +21
ii) 6x + 6 = 3x + 18

Total Marks: 100 Pass Marks: 50

ASSIGNMENT No. 3
(Units 9-13)

Q.1 Differentiate between GNP at current value and at real or constant value. Why is
the capital stock important? Also show how capital stock is related to value added
and depreciation. Show the value-added structure of the following sectors:
(a) Private enterprises (b) government sector (c) financial enterprises (20)

Q.2 Discuss Keynesian point of view about the relationship between income and
consumption or law of consumption and its assumptions. Also discuss the effects of
objective and subjective factors on consumption function. (20)

Q.3 What is money? Also write a note on the supply of money and its components in
detail. (20)

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Q.4 Discuss the historical evolution of present-day modern banking system. What is the
difference between the functions of central bank and that of commercial ones?
Explain. (20)

Q.5 Write an extensive discussion on the modern theory of international trade. (20)

Total Marks: 100 Pass Marks: 50

ASSIGNMENT No. 4
(Units 14-18)

Q.1 What is exchange rate control? Also write a note on the objectives and methods of
exchange rate control. (20)

Q.2 What are taxes? Also write a note on the classification of taxes in detail. (20)

Q.3 What is role of fiscal policy in the determination of income of a country? Also
show the effect of fiscal policy with the help of the concept of multiplier and a
diagram in the following cases: (20)
a) Government expenditures
b) Taxes

Q.4 Define economic development. How does political stability affect the development
of a country? Enumerate a logical discussion in detail. (20)

Q.5 Define planning. Also prove with suitable arguments why the planning is important
for a country like Pakistan? (20)