CAF-02 INTRODUCTION TO ECONOMICS AND FINANCE

SURE SUCCESS ASSESSMENT-SEP 2016

MUHAMMD SIDDIQUE M.Phil. ( Eco.)

CHAPTER IMPORTANT QUESTIONS / ICAPS STUDY TEXT PAGE NUMBER

1 1. Differentiate b/n Micro and Macroeconomics (p 5)
2. Features of four Factors of Production ( p 9,10)
3. Concept of opportunity cost with respect to PPC ( p 14)
4. Differentiate b/n Capitalism and Islamic Economies( p 20,21)
5. Islamic modes of financing ( p 23)
2 1. Why demand curve is negatively sloped? ( p 32)
2. Differentiate b/n Substitute and complementary goods ( p 34)
3. Limitation/Exception of Law of demand (Giffen goods) ( p 36)
4. Reserve price & its determinants, difference b/n supply and stock ( p 37)
5. Impact of subsidies and taxes on Qs with graph ( p 42,43)
6. Market Equilibrium , reaching equilibrium from disequilibrium( p 45,46)
7. Perishable goods with respect to Demand and Supply ( p 49,50)
3 1. Factors determining the Ed ( p 54,55)
2. Differentiate b/n Arc and Point Ed ( p 62)
3. Kinds of Es and relationship b/n Es and time ( p 72 to 75)
4. Buffer stock scheme and its disadvantages( p 79,80)
4 1. Differentiate b/n Cardinal and Ordinal approaches of Utility( p 85,86)
2. Law of DMU complete( p 88,90)
3. ICs its Assumptions and Properties also concept of MRS ( p 91-95)
4. Concept of Budget line , Importance & Limitations of Law of Eui MU ( p
96+97,100+101)
5. I.E and P.E with IC+BL when different kinds of commodities( p 104-107)
5 1. Different Costs concepts and their relationship with graph( p 118), Envelope
relation b/n LRAS & SRAS (p 126)
2. Laws of returns (Costs) ( p 121,122)
3. Differentiate b/n Perfect and Monopolistic Competition ( p 132+146)
4. Differentiate b/n Collusive and Non collusive Oligopolies ( p 141+142+144)
5. Advantages and Disadvantages of (Monopoly, Oligopoly,Monop Competition) ( p
138+146+149)
6 1. Various concepts of N.I( p 157-159)Measuring methods of N.I( p 162-165)
2. Differentiate b/n SRAS & LRAS( p 167-170), Keynesian AS ( p 170,171)
3. Differentiate b/n inflationary and deflationary Gap ( p 177+179)
7 1. Keynesian analysis of consumption with shifting ( p 185-188)
2. Concepts of MPC& MPS with example ( p 189)
8 1. Removal of Great depression by Keynes (p 200)
2. Consumption and saving , consumption and Investment schedule ( p 202+204)
3. Assumptions and Limitations of Multiplier( p 210), Simple Accelerator Model
with Example ( p 212,213)
9 1. Difference of opinion of money, impact of inflation on functions of Money,
kinds and Qualities of a good money, credit money (p 220-223)
2. Measuring Money, Importance of Money Supply (p 229,230)
3. Measuring Inflation (CPI),kinds and impacts/cost of Inflation(p 234-236)
4. Natural Rate of Unemployment and its remedy (p 243,244)
10 1. Economic Growth its objectives Merits and Demerits + indicators(p 247-248,250-
251)
2. Fiscal Policies its tools and Objectives(p 252,253)
11 1. Central Bank its Functions(p 261,262), types of Banks(p 270,271)
2. Conflicts of Monetary Policy and its Limitations(p 257,258)
 CAF-02 INTRODUCTION TO ECONOMICS AND FINANCE
SURE SUCCESS ASSESSMENT-SEP 2016
MUHAMMD SIDDIQUE M.Phil. ( Eco.)

12 1. Merits and Demerits of Credit(p 276,277),Money Multiplier its

Consideration/Limitations(p 282,283)
13 1. BOP & BOT (p 289), Exchange Rate its impact on Relative Prices(p 293,294)
2. Govt. policy influencing Ex Rate(p 297),Differentiate b/n Fixed & Floating Ex
Rate(p 298)
14 1. Differentiate b/n Money and Capital Markets(p 305-307)
2. Working of Stock Exchange and kinds of Shares/Stocks(p 307,308),OTC & ETDs
Derivatives(p 309)

Instructions:
1. All the students are advised to prepare ICAPS Study Text and Question Bank
thoroughly.
2. Pay special concentration on bolded/highlighted questions.
3. Remember the key points of each question carefully and make all the diagrams with
reference to the study material accurately.
4. At the end prepare some Important MCQs which are available at photocopier :
Rise School of Accountancy, Garden Town ,Lahore
5. Please feel free to contact if you have any queries. 0321-4880452

May Allah Bless all of you with Emaan e Kamila, Peace and Success in
Both of the World. Ameen