CSS Economics Last 10 Years Past Papers by Balti

FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR Roll Number

RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT, 2011
ECONOMICS, PAPER-I
TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20

THREE HOURS (PART-II) 2 HOURS & 30 MINUTES MAXIMUM MARKS: 80
NOTE: (i) First attempt PART-I (MCQs) on separate Answer Sheet which shall be taken back after 30
minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.
(PART-I MCQs) (COMPULSORY)
Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (1 x 20=20)
(i) Price effect is a combination of:

(a) Income effect and policy effect (b) Income substitution, income and welfare effect
(c) Substitution effect plus market effect (d) All of these
(ii) Which of the following is true in long run equilibrium for a firm in monopolistic competition?
(a) MC = ATC (b) MC>ATC (c) MC<ATC (d) None of these
(iii) To represent the whole economy there are:
(a) Four markets (b) Three markets (c) Two markets (d) None of these
(iv) The long run average cost curve is:
(a) U-shaped (b) J-shaped (c) Hyperbola shape (d) Both (a) and (b) (e) None of these
(v) Demand curve in monopolistic competition is:
(a) Relatively flatter than monopoly (b) Relatively steeper than monopoly
(c) Negatively sloped and same as monopoly (d) None of these
(vi) The relation between labour units employed and wage rate is shown by:
(a) Value of marginal product of labour [ VMPl ] (b) Value of average product of labour [ VAPl ]
(c) Negatively sloped marginal productivity curve (d) Both (b) and (c)
(vii) A market with few entry barriers and with many firms that sell differentiated products is:
(a) Purely competitive (b) Monopoly
(c) Monopolistically competitive (d) Oligopolistic Competition
(viii) The firm’s profit will be maximum when its:
(a) Marginal cost is greater than marginal revenue (b) Marginal revenue is greater than marginal cost
(c) Marginal cost is equal to marginal revenue (d) Both (a) and (b)
(ix) General equilibrium represents:
(a) Equilibrium of the goods and money market (b) Equilibrium of the goods market
(c) Equilibrium of the goods, money and labour market (d) None of these
(x) Net exports are always:
(a) Positive (b) Negative (c) Balance (d) None of these
(xi) When Slope of the Aggregate Expenditure Curve increases; (Keynesian Cross model)
(a) National Income will increase (b) National Income will decrease
(c) There will be recessionary gap (d) There will be inflationary gap (e) None of these
(xii) GNP of a country is:
(a) GDP divided by prices (b) GNP – GDP (c) GNP – Depreciation (d) None of these
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ECONOMICS, PAPER-I
(xiii) Money is:
(a) Currency and Coins (b) Credit cards and drafts (c) Bonds
(d) Promissory notes (e) None of these
(xiv) Keep in mind Production Possibility Frontier (PPF):
(a) All the points on the PPF could be efficient points
(b) Production may be chosen inside PPF which will be efficient
(c) Production out side the PPF is efficient (d) None of these
(xv) The investment demand curve is always:
(a) Negatively sloped (b) Positively sloped (c) Vertical (d) Horizontal
(xvi) Real interest rate is:
(a) Interest rate divided by prices (b) Interest rate divided by inflation
(c) Interest rate minus inflation (d) Interest rate plus inflation
(xvii) The consumer will be in equilibrium where:
(a) Budget line intersect indifference curve (b) Budget line intersect price line
(c) Both (a) and (b) (d) None of these
(xviii) When there is Liquidity Trap:
(a) Money demand increases interest rate (b) Money demand decreases interest rate
(c) Money demand curve is vertical (d) All of these (e) None of these
(xix) Due to change in price aggregate demand curve will:
(a) shift to the left (b) Shift to the right (c) None of (a) and (b) (d) Become flatter
(xx) Derived demand is:
(a) Like demand for shoe maker (b) Like teacher/tutor
(c) Like craftsman (d) All of these (e) None of these
PART-II
NOTE:(i) PART-II is to be attempted on separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II. All questions carry EQUAL marks.
(iii) Extra attempt of any question or any part of the attempted question will not be
considered.
Q.2. (a) Explain consumer equilibrium by utilizing Cardinal and Ordinal Approaches. (15)
(b) Which approach is better to establish consumer equilibrium and why? (05)
Q.3. (a) Explain the difference between Perfect and Pure Competition. (05)
(b) Establish equilibrium under any one markets, you have explained under (a) above. (15)
Q.4. (a) Establish and explain equilibrium of the economy in the short run and long run.
Why short run Aggregate Supply curve is horizontal. (15)
(b) Briefly explain major factors which alter the slope of Aggregate Supply Curve. (05)
Q.5. (a) Briefly explain major components of Aggregate Demand equation (function) and also
explain the role of planned and real (effective) aggregate demand. (15)
(b) Besides, explain how an increase in net exports may change equilibrium of the economy.
Discuss its impacts. (05)
Q.6. (a) Briefly point out major reasons for money demand. How an equilibrium in the money
market is established. (15)
(b) Show an impact of an increase in prices on money supply and in money market. (05)
Q.7. (a) Briefly explain major definitions of inflation. (05)
(b) How there could be hyper inflation and propose its remedial measures. (15)
Q.8. (a) Explain major goals of International Monetary Institutions like World Bank. (10)
(b) Discuss with proof whether and how many such goals, you discussed under (a) above
are achieved. (10)
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Page 2 of 2
ECONOMICS, PAPER-II

NOTE: (i) First attempt PART-I (MCQs) on separate Answer Sheet which shall be taken back after 30
minutes.
(PART-I MCQs) (COMPULSORY)
Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (1 x 20=20)
(i) The best measure of economic development is:

(a) GNP (b) HDI (c) PQLI (d) None of these
(ii) Due to land reforms of 1972 the number of farmers benefited were around:
(a) 50,300 (b) 71,500 (c) 81,201 (d) 40,301
(iii) The best measure of economic development, among the following is:
(a) Life expectancy (b) Industrial development
(c) Agricultural and industrial development (d) Development of services sector
(iv) As per 1990 census, the number of tenants in Pakistan were around:
(a) 16% (b) 20% (c) 25% (d) 13% (e) None of these.
(v) Area irrigated by different sources in Pakistan is around _____ Million hectares:
(a) 17 (a) 20 (a) 15 (a) 18
(vi) Which era (decade) in Pakistan is called “the decade lose”:
(a) 1960’s (b) 1970’s (c) 1980’s (d) 1990’s (e) 2000’s
(vii) The urban employment in the informal industry is:
(a) 72% (b) 50% (c) 30% (d) 79% (e) 60.5%
(viii) The effective tariff rate in Pakistan (Foreign Sector) is:
(a) Below 10% (b) Around 15% (c) Around 20% (d) Around 23%
(ix) The major objective of Monetary Authorities is:
(a) To control inflation and help the government (b) Stability of the economy
(c) To reduce unemployment and print money (d) To control interest rate and promote investment
(e) None of these
(x) Out of total revenue of Pakistan, the following percentage is spent on defence and debt services:
(a) 50% (b) 30% (c) 90% (d) 80% (e) 70%
(xi) Under WTO, Pakistan has bounded tariff for agriculture around:
(a) 100% (b) 50% (c) 150% (d) None of these
(xii) The best technique to measure competitiveness of trade is:
(a) Absolute advantage (b) Comparative advantage
(c) Revealed comparative advantage (d) Openness of the foreign sector
(xiii) The agricultural share in GDP is around:
(a) 22% (b) 20% (c) 15% (d) 10%
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ECONOMICS, PAPER-II
(xiv) Structural adjustment program in Pakistan led to:
(a) Increase poverty (b) Reduce poverty
(c) Improve the economy (d) No significant impact
(xv) The IMF loans are:
(a) For short term (b) For long term (c) Both (a) and (b) (d) None of these
(xvi) Indirect taxes are around _____ of the revenue.
(xvii) In the last ten years, foreign debt servicing of Pakistan has:
(a) Increased (b) Decreased (c) Remained the same
(xviii) With the introduction of reforms in the foreign sector Pakistan’s competitiveness has:
(a) Improved (b) Deteriorated
(c) Improved and deteriorated (d) Deteriorated and improved
(xix) The industrial share in the GDP is around:
(a) 20% (b) 18% (c) 22% (d) 15%
(xx) Produce Index Unit is:
(a) Per acre total production in a year (b) Per acre production of one crop in one acre
(c) Aggregate average production per acre (d) None of these
PART-II
NOTE:(i) PART-II is to be attempted on separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II. All questions carry EQUAL marks.
(iii) Extra attempt of any question or any part of the attempted question will not be
considered.
(iv) Your answer must be based upon evidences (empirical or theoretical).
Q.2. (a) Define Economic Development and state that how this definition has changed over time? (15)
(b) In the light of (a) above, how the scope of Development Economics has changed? (05)
Q.3. (a) Explain why trade is considered as “engine of growth”? (10)
(b) Did liberalization lead to improve our exports? Explain with the help of Pakistan’s
competitiveness (say Revealed comparative advantage) . (10)
Q.4. (a) Evaluate and point out major sources of agricultural growth in Pakistan? (10)
(b) What happened to these variables of growth over the time? (You must provide empirical
evidence for your arguments). (10)
Q.5. (a) Discuss major sources of industrial growth in Pakistan. (10)
(b) Point out major obstacles in its growth. (10)
Q.6. (a) Discuss the role of foreign debt and its implications. (10)
(b) How can we get out of debt trap? (10)
Q.7. (a) Point out three major approaches to measure poverty and analyze poverty problem in Pakistan,
with respect to the best approach you have described? (15)
(b) Describe A. K. Sin’s contribution to measure Poverty. (05)
Q.8. (a) Briefly discuss major components of recent fiscal policy being followed in Pakistan. (10)
(b) Analyze its contribution to improve the economy. (10)
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Page 2 of 2
ECONOMICS, PAPER-I

NOTE: (i) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q. Paper.
(ii) Attempt ONLY FOUR questions. ALL questions carry EQUAL marks.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.
PART-II
Q. 2. Explain as how the Market demand curve can be derived from Indifference curve
approach? (20)
Q. 3. Define Multiplier. Also explain the impact of Multiplier on National income and
employment of the economy. (20)
Q. 4. Compare and contrast the Fisher and Cambridge equations of money. (20)
Q. 5. Explain the process of creation of credit money and also discuss its properties. (20)
Q. 6. Explain as how Inflation and Deflation can be controlled by the Central Bank? (20)
Q. 7. Critically analyze the slogan of, “Trade not aid”. Is it possible with reference to Pakistan? (20)
Q. 8. Critically discuss the Modern Theory of International Trade as how it impacts cost
effectiveness? (20)
Q. 9. Write notes on the following:

(i) Protection policy of Industrial Development. (10)
(ii) Balance of payment as a domestic resource development. (10)
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ECONOMICS, PAPER-II

NOTE: (i) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q. Paper.
(ii) Attempt ONLY FOUR questions. ALL questions carry EQUAL marks.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.
PART-II
Q. 2. Discuss Arbitrary poverty line. Also discuss as how poverty is measured with Basic Need
Approach? (20)
Q. 3. Critically analyze the Economic Planning as a, “Steering” of the economy and without
planning like a ship having no destination. Comment with reference to Pakistan. (20)
Q. 4. Discuss the evolutionary development of Grain Revolution in Pakistan. Comment with

examples from the Pakistan economy. (20)
Q. 5. Keeping in view the Land Reforms in Pakistan, comment as how much these are
significant to achieve the targets of decentralization of wealth and income inequalities. (20)
Q. 6. Analyze and comment Industrial Development as a domestic resource development and

enhancement of absorption capacity for employment generation in Pakistan. (20)
Q. 7. Keeping in view the Market friendly approach of Economic Development, discuss the
privatization a path to economic prosparity. (20)
Q. 8. Differenciate Economic Development and Economic Growth. Also discuss the Modern
concept of Economic Development. (20)
Q. 9. Write notes on the following:

(i) Migration out flows (10)
(ii) Balance of payment as source of capital formation (10)
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ECONOMICS, PAPER-I

NOTE: (i) First attempt PART-I (MCQs) on separate OMR Answer Sheet which shall be taken back
after 30 minutes.
PART-I ((MCQs) (COMPULSORY)

Q.1. (i) Select the best option/answer and fill in the appropriate Circle on the OMR Answer Sheet. (20x1=20)
(ii) Answers given anywhere, other than OMR Answer Sheet, shall not be considered.
1. Income elasticity of demand for an inferior good is:

(a) Positive (b) Zero (c) Both (a) & (b) (d) None of these
2. Convexity means averages are ________________ than extremes:
(a) Worse (b) Positive (c) Better (d) None of these
3. Sum of MPC and MPS equals:
(a) 2 (b) 3 (c) 4 (d) None of these
4. During the Liquidity Trap, LM curve is:
(a) Less elastic (b) Positive (c) Perfectly elastic (d) None of these
5. The dominant factor of production is:
(a) Energy (b) Labour (c) Technology (d) None of these
6. GDP deflator is a ratio between:
(a) Input prices (b) Output prices (c) Both (a) & (b) (d) None of these
7. During monopoly, the equilibrium condition is:
(a) MC=P (b) MC>MR (c) MC=MR (d) None of these
8. During perfect competition, the firm would earn a normal profit when:
(a) AC>AR (b) AR<AC (c) P=MP (d) None of these
9. Roy’s identity is applied on:
(a) Food (b) Bread (c) Utility (d) None of these
10. The following is the narrowest measure of supply of money:
(a) M2 (b) M3 (c) M1 (d) None of these
11. A positive externality in which a consumer wishes to possess a good in part because others do:
(a) Supply (b) Concavity (c) Money demand (d) None of these
12. The profit function is of:
(a) Homogeneous of degree = 1 (b) Homogeneous of degree = 2
(c) Homogeneous of degree = 0 (d) None of these
13. The derivative of cost function with respect to output price provides:
(a) Input supply function (b) Output supply function
(c) Both (a) & (b) (d) None of these
14. A strategy that is optimal, no matter what an opponent does:
(a) Dominant firm (b) Duopoly (c) Dominant strategy (d) None of these
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ECONOMICS, PAPER-I
15. A devaluation of a currency takes place under

(a) Flexible exchange rate (b) Fixed exchange rate
(c) Clean floating system (d) None of these
16. Nominal interest rate is:
(a) Inflation minus Tax (b) Tax plus Indirect Tax
(c) Real interest rate minus Inflation (d) None of these
17. An un-anticipated increase in money supply is neutral during:
(a) Short run period (b) Medium run period
(c) Both (a) & (b) (d) None of these
18. A rise in general price level shifts the LM curve:
(a) Down and to the right (b) Up and to the left
(c) Positively sloped (d) None of these
19. Decrease in tax shifts the IS curve:
(a) Down and to the left (b) Negatively sloped
(c) Up and to the right (d) None of these
20. Gross National Product is:
(a) GDP - NNP (b) NFA - GNI (c) GDP - NX (d) None of these
PART-II
NOTE: (i) Part-II is to be attempted on the separate Answer Book.
(ii) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q. Paper.
(iii) Attempt ONLY FOUR questions from PART-II. ALL questions carry EQUAL marks.
(iv) Extra attempt of any question or any part of the attempted question will not be considered.
Q. No.2. Under perfect competition, how the firms earn abnormal and normal level of profits
both in the short run and long run period? Explain with suitable diagrams. (20)
Q. No.3. In the face of substantial crowding out, which will be more successful – fiscal or
monetary policy? Explain in detail. (20)
Q. No.4. What are the problems of excess sensitivity and excess smoothness? Does their
existence disproves or invalidates the LC-PIH? Explain. (20)
Q. No.5. As per Keynesian analysis, an increase in government spending raises the aggregate
demand, so the fiscal policy by itself can be a source of inflation. Is this statement true,
false or uncertain? Explain. (20)
Q. No.6. What is meant by public expenditure growth? What are various causes of expenditure
growth? Explain. (20)
Q. No.7. What is the economics of dumping? Explain in detail. (20)
Q. No.8. Differentiate and explain monetary policy multiplier and fiscal policy multiplier? (20)
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Page 2 of 2
ECONOMICS, PAPER-II

NOTE: (i) First attempt PART-I (MCQs) on separate OMR Answer Sheet which shall be taken back
after 30 minutes.
PART-I ((MCQs) (COMPULSORY)

Q.1. (i) Select the best option/answer and fill in the appropriate Circle on the OMR Answer Sheet. (20x1=20)
(ii) Answers given anywhere, other than OMR Answer Sheet, shall not be considered.
1. Foreign aid comprises of:

(a) Grants (b) Loans (c) Both (a) and (b) (d) None of these
2. Per capita income of Pakistan during the fiscal year 2011-12 was:
(a) $ 1258 (b) $1372 (c) $1025 (d) $ 1050 (e) None of these
3. The GINI coefficient is measure of:
(a) Inequality (b) Poverty (c) Growth (d) Development (e) None of these
4. During the last decade income inequality in rural areas of Pakistan has:
(a) Increased (b) Decreased (c) Remained unchanged (d) None of these
5. The share of agriculture in GDP is:
(a) 21% (b) 10% (c) 12% (d) 17% (e) None of these
6. During 1970’s the planning was concerned to:
(a) Industrial planning (b) Export promotion (c) Import substitution
(d) Structural planning (e) None of these
7. National Savings as a percent of GDP during 2011-2012 was:
(a) 10.7 (b) 13.1 (c) 9.5 (d) 8.8 (e) None of these
8. The growth rate of manufacture sector during 2011-12 was:
(a) 1.7% (b) 4.1% (c) 5.2% (d) 3.6% (e) None of these
9. The best measure of economic development among following is:
(a) NNP (b) HDI (c) GDP (d) All of these (e) None of these
10. The main objective of Monetary or fiscal policy is:
(a) Economic stablization (b) Efficiency (c) Both (a) and (b) (d) None of these
11. Direct taxes during 2011-12 were around of total tax revenue.
12. Public debt as a percent of GDP for 2011-12 was:
13. Govt. of Pakistan borrows from:
(a) Internal sources (b) External sources (c) Pakistani banks
(d) All of these (e) None of these
14. Growth rate of agriculture sector during 2011-12 was:
(a) 3.1% (b) 5.4% (c) 2.9% (d) 2.1% (e) None of these
Page 1 of 2
ECONOMICS, PAPER-II
15. Nationalization of industries took place during the regime of:

(a) ZA Bhutto (b) Zia ul Haq (c) Ayub Khan (d) None of these
16. Development economics is concerned with:
(a) Efficient allocation of scarce resources (b) Economic, social and political institutions.
(c) Imperfect resource and commodity markets. (d) (a) and (b) only (e) None of these
17. The last land reforms in Pakistan were introduced in:
(a) 1972 (b) 1977 (c) 1981 (d) 1958 (e) None of these
18. IMF advances loan for:
(a) Construction (b) Balance of payment (c) Travelling (d) None of these
19. Sixth five year plan covers the period:
(a) 1965-70 (b) 1960-65 (c) 1988-93 (d) 1983-88 (e) None of these
20. The unemployment rate in Pakistan during 2010-11 was:
PART-II

(ii) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q. Paper.
(iii) Attempt ONLY FOUR questions from PART-II. ALL questions carry EQUAL marks.
(iv) Extra attempt of any question or any part of the attempted question will not be considered.
Q. No.2. What is meant by economic development? Compare and contrast various measures of
economic development? (20)
Q. No.3. Explain the concept of economic planning and critically evaluate the planning
experience in Pakistan. (20)
Q. No.4. Define and discuss the role of human capital planning in the economic development of
Pakistan. (20)
Q. No.5. Agricultural development is indispensable for industrial development in Pakistan.

Discuss this statement. (20)
Q. No.6. Discuss the nexus between foreign trade and economic growth in Pakistan. (20)
Q. No.7. Define and discuss the role of FDI in the growth of private sector in Pakistan. (20)
Q. No.8. Write notes on any TWO of the following: (10 each)

(a) Absolute and relative poverty.
(b) Farm Size – Productivity Relationship in Pakistan.
(c) Growth and Income Distribution.
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Page 2 of 2
FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION FOR
ECONOMICS, PAPER-I
NOTE:(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II. ALL questions carry EQUAL marks.
(iii) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q. Paper.
(iv) No Page/Space be left blank between the answers. All the blank pages of Answer Book must
be crossed.
(v) Extra attempt of any question or any part of the attempted question will not be considered.
PART-II
Q. No. 2. Given the profit function of a firm. (20)
 = 80X– 2X 2 – XY– 3Y 2 + 100Y
Using the Lagrange Multiplier Method, find the maximum of the profit function subject to the
constraint that: X + Y = 12.
Q. No. 3. Using the utility maximization model show that total price effect is equal to the sum of (20)
income and substitution effects.
Q. No. 4. Differentiate between monopoly and perfect competition? How price and output is (20)
determined under monopoly in the short run?
Q. No. 5. (a) Define and explain the concept of average fixed cost, average (10 each) (20)
variable cost, average total cost and marginal cost with the help of diagram.
(b) What is the significance of the point where marginal cost is equal to average cost?
Describe this relationship mathematically as well as graphically.
Q. No. 6. Given below is the information about money market in a economy (all values in (20)
billions):
C = Currency in circulation
D = Demand deposits = $ 600
X = Excess Reserves
r = reserve requirement on Demand Deposits = 0.05
(C/D) = 0.25
(X/D) = 0.05
Calculate the value of the following: (5 each)
(a) Monetary Base
(b) M1 Money Supply
(c) Money Multiplier
(d) Change in Monetary base required to achieve M1 = $800
Q. No. 7. Use the Keynesian Cross to predict the impact of: (20)
(a) An increase in government purchases (7)
(b) An increase in taxes (7)
(c) An equal increase in government purchases and taxes (6)
Q. No. 8. Write short NOTES on the following: (20)

(a) Consumer and producer surplus (7)
(b) Compensating and Equivalent variation (7)
(c) Philips curve (6)
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ECONOMICS, PAPER-II
NOTE:(i) Part-II is to be attempted on the separate Answer Book.
(iii) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q. Paper.
(iv) No Page/Space be left blank between the answers. All the blank pages of Answer Book must
be crossed.
(v) Extra attempt of any question or any part of the attempted question will not be considered.
PART-II
Q. No. 2. Discuss the common characteristics of developing countries like Pakistan. (20)
Q. No. 3. Differentiate Absolute Poverty and Relative Poverty. Explain the poverty reduction (20)
strategies in Pakistan
Q. No. 4. Define agriculture price policy and its kinds. What are the objectives of agriculture (20)
price policy in developing countries like Pakistan?
Q. No. 5. Explain the major monetary and fiscal measures to promote industrial development. (20)
Q. No. 6. Give the causes of deficit in balance of payment in Pakistan and suggest measures to (20)
correct the adverse balance of payment.
Q. No. 7. What is the difference between collective and cooperative farming? Explain the (20)
advantages and causes of failure of cooperative farming?
Q. No. 8. Write NOTES on the following: (10 each) (20)

(a) Trends in Foreign Remittances
(b) Privatization Policy
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ECONOMICS, PAPER-1
TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

PART-I(MCQS): MAXIMUM 30 MINUTES PART-II MAXIMUM MARKS = 80
(iii) All the parts (if any) of each Question must be attempted at one place instead of at different
places.
(iv) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q.Paper.
(v) No Page/Space be left blank between the answers. All the blank pages of Answer Book must
be crossed.
(vi) Extra attempt of any question or any part of the attempted question will not be considered.
PART-II
Q. No. 2. Explain the equilibrium of firm and price fixation in Duopoly when both firms have (20)
different elastic Average Revenue and Marginal Revenue curves.
Q. No. 3. Compare and contrast the equilibrium of the firm under Perfect Competition and (20)
Monopolistic Competition.
Q. No. 4. Explain as how new investment impact on national income under Multiplier Effect. (20)
Illustrate with table and graph.
Q. No. 5. Explain as how the process of Creation of Credit Money is adopted by the banks? (20)
Q. No. 6. Define Monetary Policy and explain its instruments which control the inflation and (20)
deflation in the economy.
Q. No. 7. Why Micro and Macro Economics is prerequisite for complete Economic analysis? (20)
Explain.
Q. No. 8. Write notes on the following: (10 each) (20)

(a) How would you identify the Supply Curve of the firm under Perfect Competition in the
long Term? Explain with graph.
(b) Do you think that a Monopolistic firm can earn unlimited profit by maximizing the
price?
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ECONOMICS, PAPER-II

places.
be crossed.
PART-II
Q. No. 2. How Lorenze curve measures the poverty and income inequalities? Discuss (20)
critically.
Q. No. 3. “Economy without economic planning is like a ship having no destination”. (20)
Comment.
Q. No. 4. How agriculture development is based on ‘Green Revolution’? Discuss as how it (20)
brought revolutionary changes in agriculture development?
Q. No. 5. ‘Domestic resource development is a strategy of economic development’. Discuss as (20)

how industrial development is helpful to achieve this goal?
Q. No. 6. “Public sector enterprises are white elephant for the economy”. Discuss as how (20)
privatization can play appositive role to address this issue?
Q. No. 7. Do you think as how modern approach of economic development is in accordance (20)
with the human welfare?
Q. No. 8. Write notes on the following: (20)

(a) Poverty line (6)
(b) Basic Need Approach for poverty alleviation (7)
(c) Economic growth (7)
***************
Roll Number
COMPETITIVE EXAMINATION - 2016
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-I

places.
be crossed.
PART-II
Q. No. 2. Explain and prove mathematically that marginal revenue is less than price in case of (20)
monopolistic market structure.
Q. No. 3. Explain diagrammatically, how an increase in price generates income and substitution (20)
effect for a normal good?
Q. No. 4. Explain the inflation and unemployment relationship for pre and post 70s market (20)
economy.
Q. No. 5. Deliberate on the various theories developed to study the price and money supply (20)
relationship
Q. No. 6. Discuss the evolution of international monetary systems adopted by the world (20)
economies.
Q. No. 7. Discuss the Rostow’s stage of growth with special reference to Pakistan (20)
Q. No. 8. Differentiate between the following: (5 each) (20)

(a) Personal and disposable income
(b) Net domestic and gross domestic product
(c) Consumer price index and producer price index
(d) Multiplier and accelerator
***************
Roll Number
COMPETITIVE EXAMINATION - 2016
ECONOMICS, PAPER-II

places.
be crossed.
PART-II
Q. No. 2. Faster development leads to environmental degradation. Explain how development can (20)
be sustained without degrading the environment?
Q. No. 3. Critically evaluate major monetary and fiscal measures taken in Pakistan to promote (20)
agriculture development.
Q. No. 4. Critically evaluate import substitution and export led policies adopted in Pakistan for (20)
industrial development.
Q. No. 5. Explain factors responsible for deterioration of terms of trade for Pakistan. How (20)
Pakistan can improve its terms of trade?
Q. No. 6. Present a detailed account of Pakistan’s experience of privatization process. (20)
Q. No. 7. Has interest-free banking been successful in Pakistan? Highlight the weaknesses and (20)
strengths of interest-free banking in Pakistan.
Q. No. 8. Energy crisis in Pakistan has slowed down the growth process in Pakistan. In your (20)
opinion, how the energy shortage can be overcome?
***************
Roll Number
COMPETITIVE EXAMINATION-2017
ECONOMICS, PAPER-I

places.
be crossed.
PART-II
Q. No. 2. How does the Indifference Approach to analyzing consumer demand avoid (20)
having to measure utility? Explain.
Q. No. 3. Explain the Lewis Model of Modern-Sector Growth in a Two-Sector (20)

Surplus-Labour Economy with graphical analysis.
Q. No. 4. What do you know about ‘Demand-Side’ Inflation and ‘Supply-Side’ Inflation? (20)
Explain with the help of graphs and briefly explicate the policies to tackle both
sides Inflation.
Q. No. 5. How does the IS-LM model allow equilibrium to be shown in both Goods and (20)
Money Markets simultaneously? Elucidate with graphs.
Q. No. 6. What is the concept of Public debt? Explain the dimensions for tackling the debt (20)
problems of developing countries like Pakistan.
Q. No. 7. Examine the causes of Balance of Payments problem under Fixed Exchange (20)
Rate in short-run keeping in view the New Classical and Keynesian Analyses.
Q. No. 8. Explicate the following briefly: (5 each) (20)

(a) Difference between Development and Human Development
(b) Difference between Income Inequality and Poverty
(c) Sources of Government Revenue
(d) Functions of Central Bank
*************
Roll Number
ECONOMICS, PAPER-II

places.
be crossed.
PART-II
Q. No. 2. Explain the characteristics of Less Developed Countries (LDCs) with particular (20)
reference to Pakistan.
Q. No. 3. Critically evaluate the economic planning strategy of Pakistan. What policy (20)
measures would you suggest for sound economic planning? Discuss.
Q. No. 4. Elaborate the difference between agricultural development and rural (20)
development. What are the limitations of agricultural and rural development
policies of Pakistan? Discuss.
Q. No. 5. Explain the major monetary and fiscal measures taken in Pakistan for industrial (20)
development for the last 20 years.
Q. No. 6. Highlight and explain changes in direction of trade in recent years. Also explain (20)
trends in exports and imports of Pakistan.
Q. No. 7. Delineate the difference among privatization, deregulation and decentralization. (20)
Evaluate the experience of Pakistan in privatization.
Q. No. 8. Write short notes on TWO of the following: (10 each) (20)
(a) Export-led Growth Strategy
(b) Growth vs. Distribution
(c) Energy Crisis in Pakistan
*************
Roll Number
ECONOMICS, PAPER-I
places.
be crossed.
PART-II
Q. No. 2. (a) State the bases of IS-LM framework (equations &establish equilibrium) and (15)
comment whether it is a short run or long run analysis. State bases for your
answer.
(b) Do you think this approach (a) above, is still applicable for policy formulation. (5) (20)
Q. No. 3. (a) How the concepts of notional aggregate demand (Keynesian) and real aggregate (10)
demand (neo-classical), leads to economic fluctuations in the economy.
(b) How equilibrium is established in the market under the above (a) approaches. (10) (20)
Q. No. 4. (a) Analyze three different shapes of Aggregate Supply Curve (Constant, positively (10)
sloped and vertical).
(b) Explain the role of shifts in Aggregate Demand and their impacts on economy (10) (20)
in all three types of Aggregate Supply Curves. Relate such impacts in response
to Fiscal policy.
Q. No. 5. (a) Explain Arc and Cross elasticities and analyze their role in decision making by (10)
the consumers.
(b) Point out application of these theories; quote such examples and explain. (10) (20)
Q. No. 6. (a) Discuss major cannons of taxation and their relevance to tax system in Pakistan. (10)
(b) Do you think that the tax system in Pakistan is based upon cannons of taxation (10) (20)
(restrict your discussion to the application of cannons of taxation).
Q. No. 7. (a) What is Balance of Payment? Point out its major components. (10)
(b) Analyze any one years’ BOP of Pakistan. (10) (20)
Q. No. 8. Write short note on any TWO of the followings. (10 each) (20)
(i) Perfect and Pure competition
(ii) Monetary policy and its tools to control of money supply
(iii) Balanced and Un-balanced growth theory
*************
Roll Number
ECONOMICS, PAPER-II

places.
be crossed.
PART-II
Q. No. 2. What are the causes of over time worsened income distribution in Pakistan? Give some (20)
practicable options to overcome poverty and income inequalities in the country.
Q. No. 3. Express your views about trends in the balance of trade in Pakistan and factors (20)
affecting them. How the situation can be made favourable for Pakistan?
Q. No. 4. Agriculture’s share in GDP and employment in Pakistan has reduced over time. (20)
Express your views about this decline in the light of the experience of some developed
countries in the world.
Q. No. 5. Critically examine the performance of fiscal policy adopted in Pakistan overtime. (20)
Express your views about the appropriateness of fiscal policy tools applied for the
chosen fiscal policy.
Q. No. 6. Specifically describe the history of nationalization, denationalization and privatization (20)
in Pakistan. Why denationalization of the nationalized organizations became inevitable
in Pakistan?
Q. No. 7. Identify and prioritize three factors hindering the economic progress in Pakistan. What (20)
measures would you propose for the sustainable growth of the economy?
Q. No. 8. Briefly explain any TWO of the followings: (10 each) (20)
(a) Government Efforts to address Energy Crisis in Pakistan
(b) Scope of Import Substitution Strategy in Pakistan
(c) Climate Change Challenges for the economy of Pakistan
*************
ECONOMICS, PAPER-I

places.
be crossed.
PART– II
Q. No. 2. Use the IS-LM model to discuss the Neutral effect of monetary expansion in the case of (20)
open economy. Distinguish between Keynesian and Classical Views on neutrality of
money.
Q. No. 3. What do you understand by Monetary Transmission Mechanism (MTM)? Evaluate and (20)
explain at least three different channels of MTM.
Q. No. 4. What do the slopes of an isoquant line and iso-cost line measure? Describe (20)
theoretically and graphically the conditions that are satisfied when a firm has chosen a
least cost technique for producing a given output.
Q. No. 5. What are tariff and nontariff barriers to international trade? Why do countries (20)
sometimes restrict international trade?
Q. No. 6. Extricate among fixed, flexible and managed floating exchange rate regimes. (20)
Q. No. 7. Describe the underdevelopment trap. Highlight the main ways in which poor countries (20)
attempt to overcome their poverty.
Q. No. 8. Distinguish between any FOUR. (5 each) (20)

a. Comparative advantage and Absolute advantage.
b. Consumer surplus and producer surplus
c. Progressive and regressive taxes
d. Economic growth and economic development
e. Real GNP and nominal GNP
f. Consumer price index and GDP deflator
**********
ECONOMICS, PAPER-II

places.
(iv) Write Q. No. in the Answer Book in accordance with Q. No. in the Q.Paper.
be crossed.
(vi) Extra attempt of any question or any part of the question will not be considered.
PART-II
Q. No. 2. Describe the salient features of Nurkse, Ropan and Hirchman theories. Comment on (20)
the relevancy of each with reference to Pakistan?
Q. No. 3. Critically examine the surplus labor model presented by Arthur Lewis. Can this model (20)
be used to initiate industrial development in Pakistan?
Q. No. 4. Differentiate between the concepts of poverty and income inequality. How can public (20)
policy help in alleviating poverty and reducing inequality in a developing country like
Pakistan?
Q. No. 5. Explain various types of inflation. To what extent should it be controlled? How can (20)
fiscal and monetary policy measures help control inflation in Pakistan?
Q. No. 6. Analyze the role of international trade in the economic development of Pakistan. How (20)
might WTO affect the terms of trade in an otherwise free economy?
Q. No. 7. Examine the role of Agriculture Sector in the economic development of Pakistan. (20)
Should the country continue investing in it or there exist better options as alternate
plans?
Q. No. 8. What are the reasons for the adverse balance of trade in Pakistan? Suggest the possible (20)
measures to improve the balance of trade scenario of Pakistan.
**********
ECONOMICS, PAPER-I

places.
be crossed.
PART-II
Q. No. 2. Critically examine the marginal productivity theory of income distribution. (20)
Q. No. 3. Define Balance of Payment (BOP) and identify and explain its major components with (20)
reference to any one year’s BOP of Pakistan.
Q. No. 4. List the main functions of money. Define and discuss the quantity theory of money. (20)
Q. No. 5. Discuss importance of human capital investment for the economic development of (20)
Pakistan.
Q. No. 6. Pakistan’s Tax to GDP ratio is among the lowest in the world and its share of indirect (20)
taxes in the total tax receipts is much higher. Describe and discuss reasons behind these
phenomena and suggest measures to improve tax to GDP ratio in Pakistan.
Q. No. 7. Use the IS-LM model to discuss the neutral effect of monetary expansion in the case of (20)
an open economy. Distinguish between Keynesian and classical views on neutrality of
money.
Q. No. 8. Write a short note on any TWO of the following:- (10 each) (20)
(a) Phillips Curve and NAIRU
(b) Laffer Curve
(c) Marshallian and Hicksian Demand
**********
ECONOMICS, PAPER-II

places.
be crossed.
PART-II
Q. No. 2. Briefly explain theoretical justification for major sources of agriculture growth and (20)
analyze which of them are valid for Pakistan. Also state why green revolution did not
continue to play its role in agriculture
Q. No. 3. Pakistan has persistent trade deficit. Analyze this pattern and sources. Based upon your (20)
analysis, propose relevant and applicable policy for its improvement.
Q. No. 4. Point out three major economic issues pertaining to the failure of fiscal policy to (20)
achieve sustainable economic growth in Pakistan. Propose appropriate measures to
solve these issues.
Q. No. 5. Point out major sources of inflation in Pakistan. Justify these sources empirically and (20)
discuss how this issue was managed in the last three decades.
Q. No. 6. Briefly explain and critically evaluate the role of public and private investment in (20)
Pakistan. Also point out their role in achieving sustainable economic growth of
Pakistan.
Q. No. 7. Why internationally developed poverty lines may not be relevant to Pakistan. State (20)
poverty lines relevant to Pakistan and discuss its justifications and poverty trends in
Pakistan. Also propose applicable policy measures to solve the issue.
Q. No. 8. Theoretically justify the role of public debt, either to play positive or negative. Analyze (20)
its role in Pakistan. Also discuss steps taken to solve this problem.
**********

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FEDERAL PUBLIC SERVICE COMMISSION

COMPETITIVE EXAMINATION FOR Roll Number

TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20

(i) Price effect is a combination of:

TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20

(PART-I MCQs) (COMPULSORY)

(i) The best measure of economic development is:

TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20

Q. 9. Write notes on the following:

TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20

Q. 4. Discuss the evolutionary development of Grain Revolution in Pakistan. Comment with

Q. 6. Analyze and comment Industrial Development as a domestic resource development and

Q. 9. Write notes on the following:

TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20

PART-I ((MCQs) (COMPULSORY)

1. Income elasticity of demand for an inferior good is:

15. A devaluation of a currency takes place under

Q. No.7. What is the economics of dumping? Explain in detail. (20)

TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20

PART-I ((MCQs) (COMPULSORY)

1. Foreign aid comprises of:

15. Nationalization of industries took place during the regime of:

NOTE: (i) Part-II is to be attempted on the separate Answer Book.

Q. No.5. Agricultural development is indispensable for industrial development in Pakistan.

Q. No.8. Write notes on any TWO of the following: (10 each)

Q. No. 8. Write short NOTES on the following: (20)

Q. No. 8. Write NOTES on the following: (10 each) (20)

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

Q. No. 8. Write notes on the following: (10 each) (20)

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

Q. No. 5. ‘Domestic resource development is a strategy of economic development’. Discuss as (20)

Q. No. 8. Write notes on the following: (20)

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

Q. No. 8. Differentiate between the following: (5 each) (20)

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

Q. No. 6. Present a detailed account of Pakistan’s experience of privatization process. (20)

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

Q. No. 3. Explain the Lewis Model of Modern-Sector Growth in a Two-Sector (20)

Q. No. 8. Explicate the following briefly: (5 each) (20)

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

Q. No. 8. Distinguish between any FOUR. (5 each) (20)

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20

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