Q. 1
How are the laws of returns to scale different from the laws of variable proportions? What are the factors that cause increasing and decreasing returns to scale?
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PPSC · PMS Punjab 2016
Economics
This paper
Economics · all yearsQ. 1 · How are the laws of…Q. 2 · The validity of the traditional…Q. 3 · What is Duopoly? Explain the…Q. 4 · How does a monopolistically competitive…Q. 5 · What is meant by cartel?…Q. 6 · Explain the substitution and output…Q. 7 · Write a short note on…Q. 8 · Differentiate the following: Implicit function…Q. 9 · Explain the concept of total…Q. 10 · What do you understand by…With this paper2017 →3 hours · questions hide until you reveal them
Not yet checked 1 of 10 questions have not yet been compared with the official paper.
Section I
Q. 2
The validity of the traditional theory of cost has been questioned on both theoretical and empirical grounds. Does the modern theory of cost provide a better alternative approach to explain and predict firm's behaviour in regard to price and output determination?
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Q. 3
What is Duopoly? Explain the Cournot's Model of Duopoly.
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Q. 4
How does a monopolistically competitive firm adjust its price and output to arrive at its equilibrium? Explain and illustrate how a firm in monopolistic competition reaches its equilibrium in the short run?
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Q. 5
What is meant by cartel? Why do firms in an oligopoly market form cartel? Illustrate and explain joint profit maximization by the cartel. Does cartel system work efficiently?
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Q. 6
Explain the substitution and output effects of a change in price of a factor on its demand.
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Q. 7
Write a short note on the following:-
- (i)Marginal Rate of Technical Substation (MRTS)
- (ii)Goals of Macroeconomic Policy
- (iii)Assumptions of Perfect Competition
- (iv)Economies of Scale
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Section II
Q. 8
- (a)Differentiate the following: Implicit function and explicit function. Relations and Functions. Necessary and sufficient conditions
- (b)Consider the following demand and supply functions: Qd = 100 - 5P Qs = -20 + 10P Where 'P is the market price, Qd is quantity demanded and Qs is quantity supplied. (i) Find equilibrium price and equilibrium quantity (ii) Now suppose a flat – rate tax is imposed by the government. What is the new equilibrium price and equilibrium quantity?
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Q. 9
- (a)Explain the concept of total differential with the help of suitable examples.
- (b)A firm is a perfectly competitive producer and sells two goods, X 1 and X 2 at Rs. 1,000 and Rs. 800 respectively each. The total cost of producing these goods is given by TC = 2Q 1 2 + 2Q 1 Q 2 + Q 2 2 Where Q 1 and Q 2 denote the output levels of X 1 and X 2 respectively, find the maximum profit and the values of Q 1 and Q 2 at which this is achieved.
Not yet checked
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Q. 10
- (a)What do you understand by the concept of maxima and minima? Explain it briefly.
- (b)Optimize the objective function subject to the following constraint: Z = 26X - 3X2 + 5XY - 6Y2 + 12Y Subject to 3X + Y = 170 (i) Use Lagrangian multiplier method for finding the values X̄, Ȳ and λ̄ (ii) Use Bordered Hessian determinants for second order condition
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About this paper
The 2016 PMS Punjab Economics paper set by the PPSC. Question wording only; questions marked “Not yet checked” have not been compared with the official paper yet.
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