UII-IVERSITY OF THE PT]NJAB

Fourth Semester - 2018 . RolI No.

Examination: B.S. 4 Years
\\
PAPER: Basic Economics-fV TIME ALLOWED: 15 Min.'...
Course Code: ECONA23IECO-22449 Part- I (Compulsory) MAX. MARKS:10 '.-
uestion Sheet onlv.
Please encircle the correct ootion. Each MCO caries I Mark This Paoer will be collected
back efter expin of time limit meutioned above.

Q.l Encircle the correct answer (10x1=10)

I. '['he ultimate source of long-term groMh in

already developed countries is
a. Increased worker productivity
b. Larger and more powerftrl government
c. A workforce that always rvorks harder
d. Unrestricted imrnigration

11. A country experience trade surplus if

a. Exports are more than imports
b. Imports are more than exports
c. Imports are equal to exports
d, None of the given option

lll. Balance of payment can be examined as:

a. Difference between total receipts from and the total payments to the rest of the
world
b. Difference between import and export
c. Difference between production possibility curve and consumption curve
d. None of the given

lv. The intersection of demand curve for imports and supply curve of exports shows:
a. Partial equilibrium at which trade take place
b. Partial equilibrium
c. General equilibrium
d. General equilibrium at which trade take place
An economist will define the exchange rate between two currencies as the:
a. Amount of one currency that must be paid in order to obtain one unit of another
currency.
b. Difference between total exports and total imports within a country.
c. Price at which the sales and purchases offoreign goods take place.
d. Ratio of impons prices to export prices for a particular country.

(P.r.o.)
 vl. If all international transactions were incruded
and measured accruately, then the
statistical discrepancy would be
a.. Zero -
b. Short-term capital flows only.
c, Positive only if the central bank
intervened to support the currency.
d. Negative if the country were
rpnning a trade deficit.
vll.

vlll. Floating exchange rates refer to:

rates to even out whendisplaced
by srrocks ro the foreign
"1"T#Hn:exchange
issues of foreign exchange
cI an
T*exchange offered on the market
rate determin..d [y th; d;;#;r
d. an excess demand and suppry of a nation,s currency
for a nation( ;;;;;;ffi;:auses itiiivaluation
lX. he HR plans
]a. personnel o-f any organization does not includes
plans
b. production plans
c. compensation plans
d. training and development plans

OPEC is the
a. Organization of petrol
u. o,!*i,,ii o; ; r;; -";'*[ :;Yilil'_,t l lJill,
c Oil Producing Economie, buu"ur.
cl. Organization of problematic
Economies Committee.
 TINTYERSITY OF THE PUNJAB a a a a aaa
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Examination: 8.S.4 i'- Years 3 .,^r,*^
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PAPER: Basic Economics-fV TIME ALLOWEI): 2 Ers. & 45 Min.

Course Code: ECON-223 |EC022449 Ptt-II MA)L MARI6:5ll

Attempt this Paper on Separate Answer Sheet provided.

Q.2 Give sho( answers to the flollowing questions. (5Xa= 20)

a. 'fracle deficit
b Role ol rlranpowel in econornic development
c. Issires in agricrrllure sector of Pakistan
d. Difl'erentiate between economic growth and economic developrnent.

Q.3 Cive answers to the following questions. (t0x3:30)

a. Horv indLrstrial sector can increase economic growth of Pakistan? Discuss in detail.
b. Economic Plarrrring is considered as road map for economic developmenl. Discr.rss in
detail.
c. I-low deficit in balance of payment affect any country.
 UNTYERSITY OF THE PT]NJAB
Fourth Semester - 201E ..Roll No.
Examination: B.S. 4 Years Prosramme
\\
PAPER: Economics of Pakistan TIME ALLOWED: 15 Mints.
".
uestion Sheet onlv.

Q.t (10x1=10)

i) Pakistan is classified as a
a. Developed country b. Underdeveloped country
c. Least developed country d. Developing country
ii) IMF stands for
a. lmposing Misery and Famine b. lmpossible Mission Force
c. lnternational Monetary Fund d. lnternational Monopoly Fund
iii) Banks were nationalized in Pakistan in
a. 1988 b. 1948
c. \974 d. 2072
iv) Pakistan's major exports include
a. Oil b. Gas
c. AgriculturalProducts d. lndustrial Products
v) The fifth five year plan was for
a. 1973-7978 a. 1978-1983
c, L956-1961 c. 1961-1956
vi) Pakistan's largest source of revenue is
a. Direct tax b. lndirect tax
c. lmport tariff d. Excise duties
vii) Pakistan's Per Capita income in US dollars is below
a. 1000 b. 500
c. 1500 d. 6000
viii) USA is a
a. Developed country b. Developing Country
c. Least developed country d. Transition a I economy
ix) Tacavi loans are source of
a. Agricultural Credit b. Housing Fina nce
c. lnd ustrial Loan d. Loan to import oil
x) Following is a characteristic of a developing country
a. Low Population Growth b. Low lndustrial Production
c. Low Unemployment rate d. Low lnfant Mortality Rate
 UNTVERSITY OF THE PUNJAB
Fourth Semester - 2018 aaaaaaaaaaaaaa
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Examination: B.S. 4 Years Prosramme

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PAPER: Economics of Pakistan TIME ALLOWEDT 2 Ers. & 45 Mints.
Course Code: -232 t MAX.MARKS:50
Attempt this Paper on Separate Answer Sheet provided.

(2) Provide short answers (maximum 1O sentences per answer). (MARKS: 20)

i. Why do we need foreign aid?

ii. What is meant by Cottage lndustry?

iii. What is meant by Agricultural Marketing?

iv. List any five imports of pakistan.

v. List at least five sources of Agriculture Finance.

vi. How can we improve our education? List at least five suggestions?

-, vii. What are the reasons of adverse BOP? Provide only a list of at least five reasons.

viii. How does corruption impact economic development?

ix. How do projects rike orange train and motorway benefit the economy?

x. What is the difference in Fiscal and Monetary policy?

(3) Answer the following briefly (maximum 20 to 30 sentences per answer). (MARKS: 3O: 1O
eoch)
i. What are the characteristics of less developed countries?
ii. What are Pakistan's major exports?
iii. Discuss the importance of education in economic development.
 .....
UNIVERSITY OF THE PUNJAB
Fifth Semester 2018
Examination: B.S. 4 Years Programme
PAPER: Micro Economics TIME ALLOWED:30 mins.
MAX.MARKS:10
Course Code: ECON-301
Attempt this Paper on lhis Question Sheet only.
SECTION 1 OBJECTIW)
Note: Attempt all questions.
Q. No. l: Select the Correct Answer.
l. are substitutes of one another, then the cross elasticity of demand for
If two goods
these goods is:
a). Positive b). Negative c). Zero d). None of these
2' Slope of an ordinary difference curve is:

a).lnfinite b). Negative c). Positive d). Zero

3' Net change in total revenue due to selling ofan extra unit ofout-put is called:
a). Price b).TR c). MR d).AR
4' Compensated demand curve is also known as:
a).ICC b). PCC
c). Hicksian demand curve d). Marshallion demand curve
5' A combination of inputs which minimizes cost is:
a). Optimum factor combination b). Non proportionate combination
c).a&b d). None of these
6' [n function Q: Lu KB, if a + B>l , there are:
a). Constant returns to scale b). Decreasing retums to scale
c). Increasing returns to scale d). All of these
7 ' When LAC is at its minimum point, LMC intersects it:
a). False b). True c).a & b d).Noneofthese
8' The best or optimum level of out-put for a perfectly competitive firm is given by the
point where:
a). MR equals AC b). MR equals MC
c). MR eiceeds MC by greatest amount d). MR equals MC and MC is rising
9' The besl or optimum level of output for a pure monopolist occurs at a point where:

a). STC is minimum b). TR - STC

c). TR is maximum d). The TR and STC curves are parallel
l0' In case of price leadership by the dominantfirm, all the firms will produce (in a
purely oligopolistic industry) their best level ofout-put.
a). Always b). Never c). Some times d). Often
 UNIVERSITY OF' THE PUNJAB
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Fifth Semester Z0lE ; .
Examination: B.S. 4 years prosramme ...:.;,
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PAPER: Micro Economics
TIME ALLOWED:2 hrs. & 30 mins.
Course Code: ECON-301 MAX. MARKS: 50
Attempt this Paper on Separate Answer Sheet provided.

SUBJECTIVE

Q. No. 2 Write short answer to the following. (4 x 5 :20)

I. Engel's Curve
il. Cross elasticity of demand

III. Marginal rate of technical substitution

IV. Reserve capacity

V. Monopoly

Q. No. 3 Prove that price effect (PE) is sum of substiturion effect (SE) and Income (10)
Effect (lE) when the good is normal and price decreases.
Q. No.4 Explain long run equilibrium of a firm and industry under perfect (10)
competition.

Q. No.5 Discuss determination of price and output under price discrimination by (r0)
monopolist.
 ....
UNIVERSITY OF THE PUNJAB Roll No.

Fifth Semester 2018

Examination: B.S. 4 Years Programme
\
PAPER: Econometrics-I TIME ALLOWED: 30 mins)'..
Course Code: ECON-302 MAX. MARKS: 10

Attempt this Paper on this Question Sheet only.

Obiective Part:
Encircle the Correct Answer.

The first order auto-regressive relationship of residualterm is:

a) €t = p€Ft+ /tt
b) €t = Pe t-t - ltl
c) €t =. p€t--, + /tt
d) b-t ,= pe t+,t + ltt

The variance of the random error term may be seriously underestimated if the
errors are:
a) Not correlated
b) Auto-correlated
c) Both (a) & (b)
d) Noneofthese

The reduced form method is a:

a) Single equation method
b) Multi equation method
c) Double equation method
d) None of these

Hetro-skeda sticity can also arise as a result of the:

a) Presence of outlier
b) Absence of outlier
c) Both (a) & (b)
d) None of these

P.T.o.
5. The Method of OLS assumes that independent variables must be:
a) Endogenous
b) Exogenous
c) Partiallyendogenous
d) None of these

6. T-stat is used to check:

a) Overall significance of the model
b) lndividual significance of the variables
c) Both (a)& (b)
d) None of these

7. An equation can be:

a) Exactly identified
b) Over identified
c) Under identified
d) All of these

B. lf qualitative data has three attributes and we introduce three dummy variables,
it refers to:
a) Qualitative classification
b) Categorical classification
c) Dummy variable trap
,{) 4bsence of multi-collinearity
9. ln Correlation analysis, there is:
a) Cause and effect relationship between variables
b) No cause and effect relationship between variables
c) Both (a) & (b)
d) None of the above

10. The correlation coefficient ranges from:

a) 0to1
b) -L to +1
c) -1. to +"o
d) -c- 1s 16
 UNIVERSITY OF THE PUNJAB
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Fifth Semester 2018 : :

Examination: B's' 4 Years Prograpqrl : RollNo' """"""
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PAPER: Econometrics-I TIME ALLOWED: 2 hrs. & 30 mins.

Co : ECON-302 MAX. MARKS: 50

Attempt this Paper on Separate Answer Sheet provided.

Subjective Paper:
Note: Attempt all Questions
Q2. Explain the following briefly.
i. R2 and Adjusted R2
ii. lnstrumentalVariables 4*5
iii. OLS and GLS =20
iv. Use of Z - stat and F stat
-
v. ILS and 25LS
Q3. lncome and consumption expenditure (X and Y respectively) are given for 20
families. Given the data, estimate consumption function, indicate value of
MPC (marginal propensity to consume), indicate consumption level at zero 10
income and give economic interpretations of your regression results'

f r - 191,200 Iy = 17s,:00 Ir' = 2,165,180,000

Iy'? - 1,813,469,000 I.rz = 1,973,670,000 n= 20 _

Q4. oiriingrirh b"tween simple correlation and auto-correlation. How to find the
presence of auto-correlation? What are the consequences of auto-correlation 10

and its remedies?

Qs. Consider the following OLS regression model:
lny, -a+Bhx,+e,
Where yt )Real food expenditure,
xt ) Real food advertising expenditure
10
The model was estimated using quarterly data and sample size = 40. seasonal
dummies (seas) were introduced and the following results were obtained.
ln v, = 8.23 6 - 0. 076Sea.l, - 0.0 l2Se as, - 0.004Se4s, + 0'0 I 75 ln x,

R2 = 0.75
i. lnterpretestimatedregressioncoefficients.
ii. Explain why there are only three seasonal dummies in a regression'
iii. Comment on value of coefficient of determination.
BON COURAGE