Economics KP PMS Paper I 2010

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?