ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Economics)
WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
Assignment Submission Schedule
6 credit Hours Due Date 3 credit hours Due date
Assignment 1 10-01-2024
Assignment 1 06-02-2024
Assignment 2 06-02-2024
Assignment 3 05-03-2024
Assignment 2 01-04-2024
Assignment 4 01-04-2024
Note: Tutorial schedule (Rehnama-e-Tulba) will available on AIOU website: http://www.aiou.edu.pk
Course: Economics (402) Semester: Autumn, 2023
Level: B.A/Associate degree
Please read the following instructions for writing your assignments. (SSC, HSSC & BA
Programme)
1. All questions are compulsory and carry equal marks but within a question the
marks are distributed according to its requirements.
2. Read the question carefully and then answer it according to the requirements of the
questions.
3. Late Submission of assignments will not be accepted.
4. Your own analysis and synthesis will be appreciated
5. Avoid irrelevant discussion/information and reproducing from books, study guide
or allied material.
1. .
Total Marks: 100 Pass Marks (BA): 40
Pass Marks (AD): 50
ASSIGNMENT No. 1
(Units 1-4)
Q.1 Is economics positive or negative science? What are considerations on the basis of
those economic systems can be differentiated from one another? What are the
1
determinants of an economic system? Also enumerate different economic systems
and then write a note on the functions of free enterprises. (20)
Q.2 What is the relationship between the law of demand and law of equi-marginal
utility? Derive the demand curve of a market from the market demand schedule.
Also show the rise and fall of demand with the help of an hypothetical demand
schedule and diagram.
(20)
Q.3 Explain the division of price effect into substitution effect and income effect with
the help of indifference curves and budget line in Giffon good case. Also derive the
demand curve for Giffongood from the said diagram. (20)
Q.4 What is meant by supply and demand elasticity? In which situation unitary
elasticity of supply prevails? How does the change in elasticity of supply determine
the slope of supply curve? Explain with the help of formula and diagram. (20)
Q.5 Write a note on the following: (5+5+5+5=20)
a) Concept of consumer surplus.
b) Geometric measurement of point elasticity.
c) Break-even point of a competitive firm.
d) Long-run supply curve of an industry.
Total Marks: 100 Pass Marks (BA): 40
Pass Marks (AD): 50
ASSIGNMENT No. 2
(Units 5-8)
Q. 1 (a) What do you understand by the term “market” as it used by the economist?
Also differentiate among local, national and international markets. Give
examples of some commodities and link them to above said types.
(b) Make a comparison between differentiated oligopoly and monopolistic
competition with the help of diagrams. (20)
Q. 2 Can the equilibrium out put of a firm be established if the marginal cost intersects
the marginal revenue from above? Explain with the help of diagrams in case of
perfect competition and monopoly. Also differentiate between duopoly and
monopoly. Can this difference be shown diagrammatically? Explain. (20)
Q. 3 Whether the large scale production be necessarily beneficial or some loss would be
expected? If you know any local factory owners, why not discuss with them what
the economies of scale might be available in practical terms in their particular area
of business and industry. Write the conclusion of this discussion as a note. (20)
Q. 4 What is a wage? Also discuss different theories of wage and its types in detail. (20)
2
Q.5 a) What is median? What is median of a grouped data? Explain with the help of
formula. (20)
b) Find the median by using following table of grouped data.
Classes of Daily Wages No. of Employees (f) Cumulative
Frequencies (c)
50-150 12
151-250 15
251-350 18
351-450 25
451-550 50
551-650 54
651-750 42
751-850 32
851-950 14
Total Marks: 100 Pass Marks (BA): 40
Pass Marks (AD): 50
ASSIGNMENT No. 3
(Units 9-13)
Q.1 What is meant by internationally accepted symbols and identities of the simple
economy? Why are the basic identies modified? Write down the identies in the full
economy. Also write a discussion on the aim of national income accounting and its
general problems. (20)
Q.2 Differentiate between multipier and accelerator Also explain the following
concepts.
a) Consumption multiplier b) Dynamic multiplier.
c) Foreign trade multiple d) Acceleration effect on investment. (20)
Q.3 How does the general acceptance characteristics of money play role in its
definition? Differentiate between supply of money and stock of money. Also
enumerates the different components of money supply. (20)
Q.4 Differentiate between the saving bank and commercial bank. Discuss the role of
commercial bank in credit creation. How do commercial banks affect the daily life
business through discounting of bills, purchasing of bond and securities and over
drafting. Discuss by giving examples from daily life experience. (20)
3
Q.5 What is the relationship between purchasing power parity and exchange rate? Also
give an overview of purchasing power parity theory in a critical manner. (20)
Total Marks: 100 Pass Marks (BA): 40
Pass Marks (AD): 50
ASSIGNMENT No. 4
(Units 14-18)
Q.1 Our exports seem to be insufficient to meet the ned of foreign reserves in Pakistan.
Can deficiency in foreign reserves be overcome by reducing our imports (or
payment to the foreigners in foreign currency). Suggest a suitable policy to increase
the foreign exchange reserves of Pakistan. (20)
Q.2 What is the volume of government debt in the current year? (Consult “Pakistan
Economic Survey 2022-23”). How can the volume of government debt be
decreased by increasing government taxes? Suggest some suitable policy. (20)
Q.3 How the budget deficit is financed? Discuss the objectives and effects of deficit
financing on the economy. What is the relationship between deficit financing and
economic stability? Explain. (20)
Q.4 Discuss the economic growth and social welfare as a criteria of measuring
development of a country. Write a note on the two important sectors for the
economic development of Pakistan i.e. industrial and agriculture sectors. Also
update the data of table 17.2 from 2008-09 to 2021-22 (see Pakistan Economic
Survey 2022-23) stability and development of a country? Enumerate a logical
discussion in detail.
(20)
Q.5 Discuss different forms of economic planning. Also suggest some planning to cope
with the crises of balance of payment and employment in Pakistan(to complete
above discussion write down the relevant discussion form last topic of unit 17 “
Other key Areas”).
(20)
