Eco401 Economics - Short Questions In Old Papers

Define Per Capita Income (PCI)? A worker in ice factory becomes unemployed during winter season. What is the type of this unemployment? Give one more example as well. Write down any three instruments of monetary policy.

Differentiate between producer price index (PPI) and consumer price index (CPI).

What are three major weaknesses of exogenous growth theory?

What is total utility and marginal utility

What were the Classical views about three problems of Great Depression?(3) State the concept of Pareto Efficiency a.

Differentiate between total and marginal utility a)

Explain the law of diminishing marginal utility with the help of schedule and graph.

How per capita income is calculated Is the Keynes believed on free market economy 1. Aggregate demand is the sum of spending by individuals, businesses, and government, plus the net exports of goods and services. Explain why aggregate demand is inversely related to the price level, i.e., why aggregate spending decreases as the price level increases. a. What are the conditions for macroeconomic equilibrium in the economy.

b. How Keynesian’s multiplier can be calculated algebraically?

c. Define consumption function. Write down the determinants of consumption.

d. What does it mean that slope of consumption function is less than 1 or 45 degree line. a. Briefly explain the determinants of capital account. b. According to the given data below; If the prices of Apple are given for different years then find out the inflation from year 2002 to 2004.

Years

Prices per kg

2001

100

2002

120

2003

180

2004

280

You live in Lahore. You got 2 job opportunities at the same time. One is in Lahore and the other is in Multan. Information regarding cost and benefit for both jobs are given in the following table:

Benefit (Salary) Rs

Cost (Transportation) Rs

Job A (Lahore)

20,000

2,000

Job B (Multan)

22,000

5,000

By using this information, calculate the net benefit for both jobs and decide which job you will select? Is your decision optimal? How? Discuss the three core rules of elasticity.