Economics CSS Paper I 2007
FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS-17 UNDER THE FEDERAL GOVERNMENT, 2007
Economics Paper – I
TIME ALLOEED: THREE HOURS MAXIMUM MARKS :100
NOTE: (i) Attempt ONLY FIVE questions in all, including QUESTION NO.8, Which is COMPULSORY. All questions carry EQUALL marks.
(ii) Extra attempt of any question or any part of the attempted question will not be Considered.
(iii) Candidate must draw two straight lines(================) at the end to Separate each question attempted in Answer Book.
Q. 1 Discuss the marginal productivity theory to determine the prices of factors of production.
Q.2 What id meant by Oilgopoly? Explain “Zero-sum” game in relation to Game theory.
Q.3 explain the concepts of marginal propensity to save and marginal propensity to consume. Also discuss the existing relationship between Marginal propensity to consume and multiplier.
Q.4 Explain the quantity Theory of Money with suitable examples.
Q,5 What are the basic types of Taxes? Which one is more suitable for developing economy?
Q.6 What are the components of Balance of payments? Explain each with suitable example.
Q.7. consumer credit is more suitable for developing economy? explain.
COMPULSORY QUESTION
Q. 8 write only the correct answer in the Answer book. Do not reproduce the question.
1) In perfect competition if a firm maximizes profit, then equilibrium:
a) MR=MC. b) AR = AC c) MR = AR = PRICE = MC d) ALL of these
2) The production function will be affected by changes in the prices of:
a) Inputs b) out puts c) Neither d)all of the above
3) If a firm can fund an investment from its own sources, the opportunity cost of its investment is
a) less than Zero b) Zero c) more than zero d) neither
4) The funds used for further Investment in joint stock company refers to:
a) Distributed b) Undistributed c) Remaining d) All of the above
5) The % change in quantity demanded due to % change in income is:
a) Price elasticity b) Prices cross elasticity c) Income elasticity d) All of these
6) Indifference curves shows various combinations of:
a) One commodity b) Two c) Three d) All of these.
7) equilibrum price is a price at which
a) Quantity demanded is equal to quantity supplied
b) Quantity demanded minus quantity supplied is zero
c) Quantity demanded = quantity supplied
d) All of these.
8) in oligopoly market seller are :
a) Few b) Four c) Some d) A large number
9) monopoly market is characterized by:
a) A large number of sellers b) Only one seller c) Thousands of seller d) All of these
10) A demand curve shows the relationship between the quantity demanded for a commodity over a given time and:
a) The tastes of consumer. b) The money income of consumer c) The price of related commodities d) The price of the commodity
11) a supply schedule shows the relationship between the quantity supplied of a commodity over a given time and:
a) Factor prices b) Technology c) Both (a) and (b) d) The price of the commodity
12) The intersection of market demand and supply curves for a given commodity determines
a) The equilibrium price of the commodity b) The equilibrium quantity of the commodity c) The point of neither surplus nor shortage for the commodity d) All of these
13) If the % change in quantity demanded is more than % change in price coefficient of price elasticity is:
a) > 1 b) < 1 c) =1 d) =Zero
14) Disposable income is:
a) Income less taxes b) Income less Direct taxes c) Income less indirect taxes d) All of these 15) If the coefficient of Price elasticity is less than one:
a) It is normal good b) It is inferior good c) It is luxury good d) All of these
16) If the coefficient of income elasticity is negative:
a) It is inferior good b) It is normal good c) It is luxury good d) All of these
17) If in a market the seller is charging different prices for the same commodity from different consumers, it is known as:
a) Price discrimination b) Efficient selling c) Profit maxi-mizer in Monopoly d) All of these
18) The locus of equilibrium of consumers due to changes in price of a commodity is known as:
a) Price consumption curve b) Income consumption curve c) Production possibility curve d) none of these
19) a pure number by which change in investment is multiplied to change in income is called:
a) Multiplier b) Accelerator c) Stabilizer d) All of these
20) There is positive relationship between multiplier and:
a) Marginal propensity to consume b) Marginal propensity to save c) Marginal efficiency of capital d) All of these.
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