College for Advanced Studies

(An Intermediate project by Happy Palace Group of Schools)

Northeastern Chapter, St-1,Block-19, Federal “B” Area, Karachi, Phone: 02136361231, 02136361232
MID TERM EXAMINATION 2022
Economics-I
Maximum Marks: 75 Time Allowed: 3 Hours
Date: 13- Jan -2022 Section-A Multiple Choice Questions (15 Marks)

Q No: 1. Attempt any all multiple choice questions.

I. The quantity of a good which is offered for sale at a given price is called:
 Industry * Schools * Demand * Supply
II. This is not a Direct Tax :
 Sales * Wealth * Income *Property
III. All factors of production are variable in:
 Short run * Long run * Market period * Equilibrium
IV. Micro economics is also known as :
 Theory of price * Theory of wealth * Theory of income * None of these
V. Under perfect competition goods are :
 Heterogeneous * Homogenous * Complementary * None of these
VI. If price increases so supply :
 Contracts * Flies * Expands * Floats
VII. When economic activity is at its lowest level so it is called :
 Boom * Depression * Recession * None of above
VIII. Under perfect competition the demand curve is:
 Lesser * Greater * Horizontal * Vertical
IX. National income does not include :
 Reserve deposit * loan * Transfer payments* None of these
X. The Cannons of taxation were presented by:
 Adam smith * David Ricardo * Marshal * Robbins
XI. During inflation value of money:
 Increase * Decrease * Constant * Fixed
XII. Price elasticity of demand for necessity is :
 Less than Unity * Greater than Unity * Equal to Unity * Zero
XIII. In perfect competition price and marginal revenue have the relationship:
 P=MR *P>MR * P<MR * None of these
XIV. Ability of a good to satisfy human wants is known as :
 pledge *Scarcity *Utility *none of above
XV. When total utility is maximum the marginal utility is :
 Positive * One * Zero * None of these

1
___ ________________________________________________________________________
Northeastern Chapter, St-1, Federal “B” Area, Block-19 Phone:021-36361231, 021-36361232
 College for Advanced Studies
(An Intermediate project by Happy Palace Group of Schools)
Northeastern Chapter, St-1,Block-19, Federal “B” Area, Karachi, Phone: 02136361231, 02136361232
MID TERM EXAMINATION 2022
Economics-I
SECTION “B” (Short-Answer Questions) 40 Marks
MICROECONOMICS:
Q#2. Attempt any TEN question in this section.

1. Distinguish between stock and supply.

2. Define Production with its factor of production.
3. State the main points of Prof.Marshall’s definition of Economics.
4. Differentiate between Micro and Macro economics.
5. Differentiate between “Change in demand and Change in Quantity Demand.
6. Mention the degree of Elasticity of Demand.
7. What are the assumption and exception of law of demand?
8. What do you understand by Price elasticity of demand?
9. What are the main function of an Entrepreneur?
10. Distinguish between Demand and Supply.
11. State the Law of diminishing Marginal Utility.
12. State the silent features of Robbins definition of Economics
13. Write the name of factors that shifts the demand curve.
14. Explain the expansion and contraction in quantity demanded.
15. Explain cross elasticity of demand.
SECTION “C” (Detailed-Answer Questions) 20 Marks
MICROECONOMICS:
Q#4. Attempt any TWO of the following questions.

i) Compare Marshall’s and Robin’s definition of Economics.

ii) State and explain law of Supply with the help of schedule and diagram and also explain the
assumptions and reserve price concept.
iii) State and explain law of Demand with the help of schedule and diagram and also explain
the assumptions.
iv) Explain the law of Diminishing Marginal Utility with the help of schedule and a diagram

1
___ ________________________________________________________________________
Northeastern Chapter, St-1, Federal “B” Area, Block-19 Phone:021-36361231, 021-36361232