ECO401 Current FinalTerm Paper 21 August 2016
1) Explain second degree price discrimination with the help of an example. (3 Marks)
2) Differentiate between personal income and disposable personal income. 3 Marks
3) Differentiate between underemployment and disguised unemployment. 3 Marks
4) Briefly discuss the concept of capital deepening in the context of economic growth. 3 Marks
5) There are certain conditions for price discrimination to hold. Discuss those conditions. 5 Marks
6) Suppose firm A produces steel from raw iron and sells it for Rs.200,000 to firm B. Firm B buys this steel and then processes it to produce a car body of worth Rs.400,000. Firm C buys this car body, adds the other parts and sells the complete car for Rs.600,000. From this information, calculate the gross domestic product by value added method. 5 Marks
7) Let an economy is characterized by the following equation:
AD = Y = C + I + G + (X-M)
Where, C = 500 + 0.90Y, G = 300, I = 200, M = 150, X = 250
Find out the equilibrium output level. 5 Marks
8) Let an economy is characterized by following information:
Saving = -10 + 0.2Y, Imports = 70, Investment = 100 and Exports = 70
Calculate the equilibrium level of output by using leakages-injections approach. 5 Marks
9) Give any five examples of foreign exchange markets. 5 Marks
2) Differentiate between personal income and disposable personal income. 3 Marks
3) Differentiate between underemployment and disguised unemployment. 3 Marks
4) Briefly discuss the concept of capital deepening in the context of economic growth. 3 Marks
5) There are certain conditions for price discrimination to hold. Discuss those conditions. 5 Marks
6) Suppose firm A produces steel from raw iron and sells it for Rs.200,000 to firm B. Firm B buys this steel and then processes it to produce a car body of worth Rs.400,000. Firm C buys this car body, adds the other parts and sells the complete car for Rs.600,000. From this information, calculate the gross domestic product by value added method. 5 Marks
7) Let an economy is characterized by the following equation:
AD = Y = C + I + G + (X-M)
Where, C = 500 + 0.90Y, G = 300, I = 200, M = 150, X = 250
Find out the equilibrium output level. 5 Marks
8) Let an economy is characterized by following information:
Saving = -10 + 0.2Y, Imports = 70, Investment = 100 and Exports = 70
Calculate the equilibrium level of output by using leakages-injections approach. 5 Marks
9) Give any five examples of foreign exchange markets. 5 Marks
ECO 401 FINAL TERM SUBJECTIVES
- WHAT IS THE DIFFERENCE BETWEEN DISCOUNTED RATE AND DISCOUNTing
- FIND THE CONSUMPTION LEVEL OF THE C FUNCTION...inputs and output level was given
- describe the characteristics of monopoly market structure
- prove that GDP per capita income and total population and total output equal growth per capita GDP and growth total population and output (given in the lecture 38)
- differentiate between cost push inflation and demand-pull inflation with the help of examples
- if multiplier is 1.20 what will be the value of marginal propensity to consume
- a machine is bought...earns 100 million in first year, 200 million in second year and 300 million in third and the scrap output is 100 million...find the present value of machine with 5% discounted rate after 3 years.
- most mcq's were from past papers ...overall it wasnt that hard
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