Pakistan Institute of Development Economics, Islamabad

Sample Admission Test 2019

(M.Phil. Economics, M.Phil. Economics and Finance, M.Phil. Econometrics)

Please read the instructions carefully before starting the test.

1. Fill out application ID number, name and father’s name on the title page.
2. Do not forget to sign the admission sheet available in the exam room.
3. Read the question carefully and choose the best answer for each question.
4. No cutting or overwriting please.
5. All questions are compulsory and there is No negative marking.

Maximum Time: 90 Minutes

Application ID Number: __________________________________
Name of Applicant: __________________________________
Father’s Name: __________________________________
Signature of the Applicant: _________________________________

General Aptitude (This Section may comprise of 10 questions)

Q.1) If x and y are two positive integers and x + y = 5, then what is the probability that x
equals 1?
A. 1/3
 B. 1/4
C. 1/5
D. 1/6

Q.2) If the average (the arithmetic mean) of a, b, c, 5 and 6 is 6; then, what is the average of a,
b, c and 13?
A. 8
B. 8.5
C. 9
D. 9.5

Analytical Questions (This Section may comprise of 10 questions)

Six scientists A, B, C, D, E, and F are to present a paper each at a one-day conference. Three of
them will present their papers in the morning session before the lunch break whereas the other
three will be presented in the afternoon session. The lectures have to be scheduled in such a way
that they comply with the following restrictions:

B's should present his paper immediately before C's presentation; their presentations cannot be
separated by the lunch break. D must be either the first or the last scientist to present his paper.

Q.3) B could be placed for any of the following places in the order of presenters EXCEPT
A. first
B. second
C. third
D. fourth

Q.4) In case F is to present his paper immediately after D presents his paper, C could be
scheduled for which of the following places in the order of presenters?
A. Second
B. Third
C. Fourth
D. Fifth

Reading Comprehension (This Section may comprise of 10 questions)

Rudyard Kipling writes that the “East is the East, the West is the West, and never the twain shall
meet.” This couplet highlights dramatic differences in the Eastern and Western conceptions of
development. In the West, nearly all major schools of thought, from Adam Smith to Karl Marx,
are agreed on the idea that development is all about the accumulation of wealth. In contrast, Eastern
thinkers from different philosophical, cultural and religious traditions, all agree on the idea that
our collective goals should be to create an environment which nurtures all human beings, to enable
them to reach their full potential. In this process of human development, pursuit of material wealth
is a trap and a delusion, which creates obstacle to spiritual progress. Current obsession with
production of wealth has enslaved all human beings as well as all planetary resources to become
only factors of production, removing meaning from lives, and leading to breakdown of society,
and widespread environmental destruction. Unfortunately, the power and glory of the West has
dazzled the eyes of all beholders, making their views dominant, and removing alternative ideas
from center stage in the media. To save the planet and human society from complete collapse, we
urgently need to bring back the Eastern concepts which value human life, as well as other species
of plants and animals, and urge us to cherish, protect, and value the planet we all live on.

Q.5) Which of the following expresses the MAIN idea of the above paragraph?

A. The East and the West can never meet on good terms
B. We are headed for an environmental disaster, which will destroy our planet.
C. Western views about progress are dramatically different from Eastern views.
D. The West currently dominates the world

Q.6) The author of the passage would agree with which of the following ideas
A. Western conquest of the planet proves that the superiority of the West.
B. Eastern societies must follow Western ideas in order to progress like the West.
C. Contrasting Western and Eastern ideas are currently being debated in the center stage
of the media.
D. Western ideas have led the planet to the brink of disaster and must be replaced by
Eastern concepts to save the planet.

Subject Based questions (Microeconomics and Macroeconomics 10 Questions, Finance 10

Questions, Quantitative 10 Questions )

Q.7) When total utility is maximum;

A. Marginal utility rises
B. Average utility rises
C. Marginal utility is zero
D. Average utility is zero

Q.8) In general, a flatter demand curve is more likely to be:

A. Price Elastic
B. Unit Price Elastic
C. Price Inelastic
D. None of Above
Q.9) When we divide consumption by income, it is known as:
A. Average propensity to consume
B. Marginal propensity to consume
C. Marginal propensity to save
D. Total disposable consumption

Q.10) Which of these is a main instrument of Fiscal Policy;

A. Exchange rate
B. Interest rate
C. Taxes
D. Money Supply
Q.11) The following are the examples of financial assets except?

A. Stocks
B. Bank Loan
C. Bond
D. Raw material

Q12) We say about a particular investment that it is risky, because

A. it is dangerous
B. it has low returns
C. its returns are uncertain
D. its raw material is unavailable

10 −2
Q.11) P-1 given P = [ ]:
−5 1
A. P-1 = 0
B. P-1 = 1
1 2
C. P-1 = [ ]
5 10
D. -1
P does not exist

Q.12) Shoe size of the most males of Pakistan is No. 8. Which measure of central tendency does
it represent?
A. Mean
B. Median
C. Mode
D. Second quartile