CSS Economics Last 10 Years Past Papers by Balti
CSS Economics Last 10 Years Past Papers by Balti
CSS Economics Last 10 Years Past Papers by Balti
ECONOMICS, PAPER-I
Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (1 x 20=20)
Page 1 of 2
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
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ECONOMICS, PAPER-II
Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (1 x 20=20)
Page 1 of 2
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.
(a) 70% (b) 80% (c) 85% (d) None of these
(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
FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR Roll Number
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UNDER THE FEDERAL GOVERNMENT, 2012
ECONOMICS, PAPER-I
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)
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COMPETITIVE EXAMINATION FOR Roll Number
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UNDER THE FEDERAL GOVERNMENT, 2012
ECONOMICS, PAPER-II
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. 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. 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)
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COMPETITIVE EXAMINATION FOR Roll Number
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UNDER THE FEDERAL GOVERNMENT, 2013
ECONOMICS, PAPER-I
Page 1 of 2
ECONOMICS, PAPER-I
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.8. Differentiate and explain monetary policy multiplier and fiscal policy multiplier? (20)
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Page 2 of 2
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UNDER THE FEDERAL GOVERNMENT, 2013
ECONOMICS, PAPER-II
Page 1 of 2
ECONOMICS, PAPER-II
PART-II
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.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)
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Page 2 of 2
FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION FOR
RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT, 2014
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) 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)
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FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION FOR
RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT, 2014
ECONOMICS, PAPER-II
TIME ALLOWED: (PART-I MCQs) 30 MINUTES MAXIMUM MARKS: 20
THREE HOURS (PART-II) 2 HOURS & 30 MINUTES MAXIMUM MARKS: 80
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. 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?
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FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION FOR
RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT, 2015
ECONOMICS, PAPER-1
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.
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FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION FOR
RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT, 2015
ECONOMICS, PAPER-II
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. 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?
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FEDERAL PUBLIC SERVICE COMMISSION
Roll Number
COMPETITIVE EXAMINATION - 2016
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-I
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)
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FEDERAL PUBLIC SERVICE COMMISSION
Roll Number
COMPETITIVE EXAMINATION - 2016
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-II
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. 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?
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FEDERAL PUBLIC SERVICE COMMISSION
Roll Number
COMPETITIVE EXAMINATION-2017
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-I
PART-II
Q. No. 2. How does the Indifference Approach to analyzing consumer demand avoid (20)
having to measure utility? Explain.
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.
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FEDERAL PUBLIC SERVICE COMMISSION
Roll Number
COMPETITIVE EXAMINATION-2017
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-II
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
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FEDERAL PUBLIC SERVICE COMMISSION
Roll Number
COMPETITIVE EXAMINATION-2018
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-I
TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20
PART-I(MCQS): MAXIMUM 30 MINUTES PART-II MAXIMUM MARKS = 80
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) 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. (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
*************
FEDERAL PUBLIC SERVICE COMMISSION
Roll Number
COMPETITIVE EXAMINATION-2018
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-II
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
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FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION-2019
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-I
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.
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FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION-2019
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-II
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.
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FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION-2020
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-I
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
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FEDERAL PUBLIC SERVICE COMMISSION Roll Number
COMPETITIVE EXAMINATION-2020
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS, PAPER-II
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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