KHYBER PAKHTOON KHWA PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR THE POSTS OF PROVINCIAL
MANAGEMENT SERVICE (BPS -17) 2010
ECONOMICS PAPER — I
TIME ALLOWED: THREE HOURS MAXIMUM MARKS: 100
Note: Attempt any Five questions. Please be brief and to the point Support your answer through diagrams examples and verbal arguments. All questions carry equal marks.
Q1: Distinguish between the total utility and the marginal utility. Show that total utility is maximum when marginal utility equal zero.
Q2: State and explain the Law of Variable Proportions with the hell of schedule and diagram.
Q3: Illustrate graphically Sweezy’s kinked demand curve theory of rigidity in oligopoly. Are prices in oligopoly really sticky?
Q4: What is National income? Explain different concepts of National Income.
Q5: What is meant by Balance of Payments? How would you correct an adverse BOP of a country?
Q6: What is money? What are its functions?
Q7: Define the concept and methods of deficit financing. What are the reasons for deficit financing in Pakistan?
Q8: What is the equation of exchange and the velocity of circulation? What assumptions are necessary to make the equation of exchange the quantity theory of money?