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ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Business Administration)
MACRO ECONOMICS (BBA-185)
CHECKLIST
SEMESTER: AUTUMN 2010
This packet comprises the following material:
1. Text Books (one)
2. Course Outline
3. Assignment No. 1, 2
4. Assignment Forms ( 2 sets)
In this packet, if you find anything missing out of the above mentioned material, please contact at the address given below:-
Deputy Registrar
Mailing Section, Block No. 28
Allama Iqbal Open University
H-8, ISLAMABAD.
Phone 051-9057611-12
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
(Department of Business Administration)
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 ASSIGNMENTS BORROWED OR STOLEN FROM OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN “AIOU PLAGIARISM POLICY”.
Course: Macro Economics (185) Semester: Autumn 2010
Level: BBA Total Marks: 100
Pass Marks: 40
ASSIGNMENT No. 1
(Units: 1–4)
Q. 1 (a) Differentiate between the Gross national Output and Gross National Expenditure. (10)
(b) Briefly discuss the concept and measurement of national Income. (10)
Q. 2 Explain the following:
(a) Consumption function. (10)
(b) Determination of equilibrium level of income and output. (10)
Q. 3 (a) Discuss in detail, public versus private finance? (10)
(b) What would be the effects of government spending on output? (10)
Q. 4 (a) Define money and discuss its functions. (10)
(b) What are the functions of central bank and commercial bank? (10)
Q. 5 (a) Discuss public vs. private finance. (10)
(b) Explain the difficulties in measurement of National Income. (10)
ASSIGNMENT No. 2
(Units: 5–9) Total Marks: 100
Q. 1 (a) What is the current rate of Inflation in Pakistan? Discuss the relation between inflation and unemployment exist in Pakistan. (10)
(b) In ABC country, the working age population is 1,70,000. There were 40,000 discouraged workers and 16000 unemployed laborers.
(i) What is labor force of this country?
(ii) Calculate unemployment rate and the labor-force participation rate.
(iii) Suppose that 8000 of the unemployed workers decided to give up looking for work redo the calculations in part (i) and (ii) (10)
Q. 2 (a) Discuss in detail, the need for International Trade. (10)
(b) Explain the principle of absolute and comparative advantage. (10)
Q. 3 (a) Define Balance of Payments and discuss the structure of balance of Payments? (10)
(b) Explain the methods to control Balance of Payments Disequilibrium. (10)
Q. 4 (a) Explain different functions of International Monetary Fund. (10)
(b) Discuss the role of International Monetary Fund in development of Pakistan. (10)
Q. 5 Briefly discuss the relationship between trade, balance of payment and determination of exchange rate? (20)
Guidelines FOR ASSIGNMENTS
You should look upon the assignments as a test of knowledge, management skills, and communication skills. When you write an assignment answer, you are indicating your knowledge to the teacher:
§ Your level of understanding of the subject;
§ How clearly you think;
§ How well you can reflect on your knowledge & experience;
§ How well you can use your knowledge in solving problems, explaining situations, and describing organizations and management;
§ How professional you are, and how much care and attention you give to what you do.
To answer a question effectively, address the question directly, bring important related issues into the discussion, refer to sources, and indicate how principles from the course materials apply. You must also be able to identify important problems and implications arising from the answer.
For citing references, writing bibliographies, and formatting the assignment, APA format should be followed.
Prepare your assignment as per the guidelines and it may be re-evaluated by the Quality Assurance Cell, Department of Business Administration at any time.
MACRO ECONOMICS
Course Outline (BBA-185)
Unit 1: The Measurement of National Income
· Concept and measurement of national income
· Gross national output and gross national expenditure
· Difficulties in the measurement of national income
· National income and circular flow of income and expenditure
Unit 2: Determination of Equilibrium Level of Income
· Consumption function and the determination of equilibrium level of income and output.
· Inflationary and deflationary gap
· Determinants of investment and the marginal efficiency of capital
Unit 3: Fiscal Policy and Aggregate Demand
· Public versus private finance
· Government spending: taxes and transfer
· Government and aggregate demand
· Effect of government spending on output
· The effects of taxation on output
· The combined effects of spending
Unit 4: Money, Banking and Monetary Policy
· Money: definition and functions of money
· Functions of central bank and commercial banks
· Money demand, money supply and the determination of interest rate
· Monetary policy, instruments and objectives of monetary policy
Unit 5: Inflation and Unemployment
· Different types of inflation, causes and consequences
· Different types of unemployment and causes
· Relation between inflation and unemployment
· Methods of controlling inflation and unemployment
Unit 6: International Trade
· Need for international trade
· International trade theory
· Principle of absolute and comparative advantage
Unit 7: Balance of Payments
· Structure of balance of payments
· Equilibrium in the balance of payments
· Causes and consequences of balance of payments disequilibrium
· Methods of controlling balance of payments disequilibrium
Unit 8: Determination of Foreign Exchange Rate
· Relationship between international trade, balance of payments and the determination of exchange rate
· Types of foreign exchange rate determination system
· Fixed, floating and flexible exchange rates and their advantages and disadvantages
Unit 9: International Financial Systems and Economic Growth
· International Monetary Fund: structure, functions and role in the determination of exchange rate system
· World Bank: functions and role in development of less developed countries
· GATT, rounds of GATT and the New World Order, World Trade Organization (WTO).
Recommended Books:
Economic Theory Vol. II by Ch. Muhammad Hussain
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