Time allowed: 3 hours
Max marks:100


Note:Attempt any Five Questions.


Q.1 Distinguish between the total utility and the marginal utility. Show that total utility is maximum when marginal utility is zero?

Q.2 State and explain the law of variable proportions with the help of schedule and diagram.

Q.3 Illustrate graphically Sweezy's kinked demand curved theory of rigidity and oligopoly. Are prices in oligopoly really sticky?

Q.4 What is National Income? Explain different concepts of National Income.

Q.5 What is meant by balance of payments? How would you correct an adverse BOP of a country?

Q.6 What is money?What are its functions?

Q.7 Define the concept and methods of deficit financing. What are the reasons of deficit financing in Pakistan?

Q.8 What is the equation of exchange and the velocity of circulation? What assumptions are necessary to make the equation of exchange the quantity theory of money?