FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION – 2021
FOR RECRUITMENT TO POST IN BS – 17
UNDER THE FEDERAL GOVERNMENT
ECONOMICS PAPER I
TIME ALLOWED: THREE HOURS
PART – I (MCQs): MAXIMUM 30 MINUTES
PART – I (MCQs): MAXIMUM MARKS = 20
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.
(iv) Extra attempt of any question or any part of the attempted question will not be considered.
PART-II
Q. No. 2. Elaborate the own-price, cross-price, and income elasticity theoretically and empirically. Also, explain the relationship between own-price elasticity and total revenue. (20)
Q. No. 3. What are the three different approaches to measure the Gross Domestic Product (GDP)? Discuss. Why should the three approaches yield the same result? Do you think one approach can be preferred over the other? Justify your arguments. (20)
Q. No. 4. What are the functions of the International Monetary Fund (IMF)? What practices IMF adopt in order to assist countries facing a financial crisis? Evaluate the IMF lending to the developing countries with reference to Financial Action Task Force (FATAF) status. (20)
Q. No. 5. Explain the macroeconomic outlook of the economy of Pakistan and suggest any policy framework for the formulation of the budget and reducing the budget deficit. (20)
Q. No. 6. Differentiate between the exchange rate systems vis-a-vis fixed, flexible, and managed floating exchange rate systems. Which regime is currently being pursued by Pakistan? (20)
Q. No. 7. What is the Lewis turning point? How can it be attained? What happens if, within the framework of the Two-Sector model, the transfer of labor from subsistence to the modern sector continues beyond this point? Elaborate. (20)
Q. No. 8. What were the major macroeconomic consequences of the COVID-19 Pandemic for the economy of Pakistan? Suggest some realistic measures which can be adopted to tackle the issue. (20)
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