SINDH PUBLIC SERVICE COMMISSION, HYDERABAD.
Combined Competitive Examination, 2021
Economics
(Paper-I)
Tuesday the 17th November, 2020.
Time: 02:00 pm to 05: 00 pm Maximum marks. 100
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Note Attempt any Five questions. All questions carry equal marks.
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Question No.
01 Discuss the function of a Central Bank between bank rate and open market operations. Which is more effective as an instrument of credit control?
02 Explain the causes of growth of Public Expenditure in modern times. Is this growth always justifiable?
03 What is meant by an Economic Integration, a preferential trade arrangement, a free trade area, a common market and an Economic Union? Give an example of each.
04 Why is there a need for a separate theory of Macroeconomics? Discuss in detail.
05 State Okun’s Law. How does it help us evaluate the cost of unemployment in a society?
06 Explain the Concept of Elasticity of Demand. Calculate the elasticity of market demand from the following schedule using the Arc Elasticity Method.
| Price of a Product (Rs) | Quantity Demanded | Point. |
| 5 | 3.5 | A |
| 4 | 4.2 | B |
| 3 | 5.0 | C |
| 2 | 6.0 | D |
07 What do you mean by the concept of balanced growth? Examine the desirability and capacity of the under-developed countries to follow the balance growth path.
08 Explain how price and output are determined under monopoly. Is monopoly price always greater than the competition price?
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