Economics papers I-II, 2013

Table of Contents

Paper I

1. 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 diagram.

2. In the face of substantial crowding out, which will
be more successful- fiscal or monetary policy? Explain in detail.

are the problems of excess sensitivity and excess smoothness? Does their
existance disproves or invalidate the I.C-PIH? Explain.

4. 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.

5. What is meant by public
expenditure growth? What are the various causes of expenditure growth?

What is the economics of dumping? Explain in

Differentiate and explain monetary policy multiplier and fiscal


1. What is meant by economic
development? Compare and contrast various measures of economic

2. Explain the concept of economic planning and critically
evaluate the planning experience in Pakistan.

3. Define and discuss the
role of human capital planning in the economic development of

4. Agricultural development is indispensable for industrial
development in Pakistan. Discuss this statement.

5. Discuss the nexus
between foreign trade and economic growth in Pakistan.

6. Define and
discuss the role of FDI in the growth of private sector in Pakistan.

Write notes on any Two of the following.
a) Absolute and relative
b) Farm size- Productivity relationship in Pakistan.
c) Growth and
Income distribution.


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