CSS Economics Past Paper 2014
PAPER-I (Subjective) 80 Marks
PART-II
Attempt ONLY FOUR questions from PART-II. (20×4)
Q. No. 2 Given the profit function of a firm. = 80X – 2X² – XY – 3Y² + 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 income and substitution effects.
Q. No. 4 Differentiate between monopoly and perfect competition. How price and output is determined under monopoly in the short run?
Q. No. 5
(a) Define and explain the concept of average fixed cost, average variable cost, average total cost, and marginal cost with the help of a 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 the money market in an economy (all values in 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:
(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:
(a) An increase in government purchases
(b) An increase in taxes
(c) An equal increase in government purchases and taxes
Q. No. 8 Write short NOTES on the following:
(a) Consumer and producer surplus
(b) Compensating and Equivalent variation
(c) Philips curve
PAPER–II (Subjective) 80 Marks
PART-II
Attempt ONLY FOUR questions from PART-II. (20×4)
Q. No. 2 Discuss the common characteristics of developing countries like Pakistan.
Q. No. 3 Differentiate Absolute Poverty and Relative Poverty. Explain the poverty reduction strategies in Pakistan.
Q. No. 4 Define agriculture price policy and its kinds. What are the objectives of agriculture price policy in developing countries like Pakistan?
Q. No. 5 Explain the major monetary and fiscal measures to promote industrial development.
Q. No. 6 Give the causes of deficit in balance of payment in Pakistan and suggest measures to correct the adverse balance of payment.
Q. No. 7 What is the difference between collective and cooperative farming? Explain the advantages and causes of failure of cooperative farming.
Q. No. 8 Write NOTES on the following:
(a) Trends in Foreign Remittances
(b) Privatization Policy