One question a day keep the teacher away 42 days remedy __________________________________________________________________ Paper-A

Section-I(Mathematical Economics)
1.

Solution of National income equations(Y=C+I+G, S=I etc.) elasticity of demand and supply Revenue and Cost ( TR, AR, MR, TC, AC, MC, AVC) Revenue maximization and Cost minimization problems Profit maximization problems and imposition of tax, subsidies. Section-II(Microeconomics)

2. 3. 4. 5.

1. Explain consumers equilibrium with the help of indifference curve approach. 2. Show that price effect is a sum of income effect and substitution effect. 3. Derive consumers demand curve with the help of indifference curve approach. 4. Explain Revealed Preference theory of consumer behavior. 5. Explain the law of variable proportions with the help of table and diagram. 6. How does a producer maximize output subject to limited (given) budget using optimum factors combination? Explain with the help of Isoquant approach. 7. Derive the long run marginal cost curve with the help of short run marginal cost curves. 8. Explain different possibilities of short run equilibrium of a firm working under perfect competition. 9. Derive short run supply curve of a firm working under perfect competition. 10. Explain long run equilibrium of a firm working under perfect competition. 11. Derive long run supply curve of industry under perfect competition.
12. What is Price discrimination? How does monopolist maximize his profit by exercising Price

discrimination? 13. Explain price and output determination under monopolistic competition? 14. What is cartel? How price and output is determined in the environment of cartel?

15. What is oligopoly? Explain Price leadership model of oligopoly.

Paper-B
Section-I(Macroeconomics) 1. Critically examine classical theory of full employment. 2. What is meant by Equilibrium level of National income? Explain with the help of diagrams. 3. What is meant by Inflationary and Deflationary gaps? How these gaps can be wiped out? 4. Explain Investment multiplier both graphically and algebraically. 5. Explain Keynesian psychological law of consumption. Also discuss its implications. 6. What is MEC? What role does it play in the determination of investment? 7. Explain acceleration principle with its limitations. 8. Derive I.S curve. Explain its vertical and horizontal slopes. 9. Derive L.M curve. Explain its vertical and horizontal slopes.
10. Explain different phases of business/trade cycle. What measures can be adopted to

control business cycles. 11. Critically examine Comparative cost theory of international trade. 12. Explain modern theory of international trade. 13. Write short note on the following: i. ii. iii. iv. Problems of macroeconomics Permanent income hypothesis Life cycle income hypothesis Interaction of multiplier and accelerator

Section-II(Pakistan Economics)
1. Discuss the features of developing countries.

2. What is meant by Economic Development? Discuss different criteria to measure economic development of a country. 3. Discuss the problems of agriculture sector of Pakistan. Suggest measures to solve these problems. 4. Discuss the problems of industrial sector of Pakistan. What steps have been taken by the government solve these problems. 5. What do you know about Market Imperfections? How market imperfections can be eliminated. 6. Discuss the need/importance of Economic Planning in Pakistan. 7. Discuss the financial resources available to Pakistan. 8. Pakistan is facing the heavy burden of external debt. Suggest measures to reduce the burden of debt. 9. Discuss the need/importance of manpower planning in Pakistan.