IMPORTANT QUESTION CA

IMPORTANT QUESTION CA EXAMINATION 2009 (SPRING)
Sr Question
1 Briefly describe the merits and demerits of capitalism.
2 In Market Economy, the price mechanism solves the central problems of
Economy. Discuss.
3 (a) What is a production possibility curve? Why is it concave to origin?
(b) What is capital? Discuss sources of capital formation
(c) What is factor mobility? What are its factors.

4 (a) Explain the concept of cross price elasticity of demand?
(b) What factors determine elasticity of demand?
(c ) Using PCC derive a demand curve.
(d) What is relation between LDMU and Law of demand?
(e) Why a demand curve slops downward?
(f) What are the factors responsible for shift of a demand curve?
5 (a) Explain law of substitution?
(b) Prove that an indifference curve is always convex to origin.
(c )Explain income effect for an inferior good.
6 (a) What is oligopoly? What are sources of oligopolistic market?
(b) Discuss kink demand curve model for oligopoly.
(c )Write a note on cartels.
(d) Compare Monopolistic competition with monopoly?
(e) What is price discrimination? Explain equilibrium of discriminating firm.
(f) Bring out economic arguments against the Monopoly.
7 (a) Explain how can a firm choose optimal combination of two factors of production (Equilibrium of producer with isoquants)
(b) What are internal and external economies of scale?
8 Write explanatory notes on:
(a) Goals of Economic Policy
(b) Merits of Direct Taxes
(c) Suggestions to control deficit in Pakistan’s BOP
9 (a) Outline the Expenditure approach to measure GDP, GNP, NNP and
the National Income.
(b) Describe the utility of computing the National Income.
(c) Discuss the main objectives of monetary/Fiscal policy.
(d) Explain tools of monetary Policy (Open market operations, bank rate policy etc)
10 What is meant by ‘Indirect Taxes’? Identify major demerits of ‘Indirect Taxes’?
11 Explain the concepts of Average Propensity to Consume (APC) and Marginal Propensity to Consume (MPC).
12 Critically discuss QTM
13 Define Demand-pull inflation and Cost Push inflation. How can demand-pull inflation be controlled?
14 (a) Point out important functions of money.
(b) Analyse the components of Monetary Assets in Pakistan.
15 Elucidate the advantages of bank money.
16 Write note on the following:
(a) Money Market and Capital Market
(b) Five instruments of money market
(c) Five institutions of capital market
(d) Stock exchange
17 Explain functions of central /commercial bank
18 (a) Briefly discuss the exchange rate determination under:
(i) purchasing power parity theory; and
(ii) demand and supply theory.
(b) Submit your argument in favour of floating exchange rate policy.
19 State the basic assumptions of the marginal productivity theory. Explain the theory with the help of an example.
20 Describe the main activities of World Trade Organization.
21 (a) Explain the effect of ‘devaluation of currency’ on the balance of payment -current account of the country with the help of J-curve.
(b) Briefly discuss the arguments against the policies of a government to
protect the domestic producer.