KHYBER PAKHTUNKHWA PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR THE POST OF PMS (2018)
ECONOMICS PAPER-I)
Time Allowed: 03 Hours Total Marks: 100
NOTE: Attempt any five questions in all, selecting at least two questions from each part. Support your answers by
suitable diagrams/mathematical treatment, where necessary. Keep up to the point and avoid unnecessary details.
Part-C
Q1 Explain and illustrate the law of diminishing marginal utility. Discuss the assumptions, exceptions and importance of this law.
Q2. Distinguish between extension and contraction of demand and rise and fall in demand. On what factors change in demand depends?
Q3. What is meant by iso-product curves? Explain firm’s equilibrium by the help of iso-product and iso-cost curves.
Q4. Write a compressive notes on any two of the following: i) Determinants of demand. ii) Properties of indifference curve and Badget line. iii) Nature of prefect competitions.
Part-B
Q5. Discuss the carious concepts of national income. Mention the difficulties involved in the measurement of national income.
Q6. Discuss the various canons of taxations and distinguish between progressive and proportional taxations.
Q7. Discuss the role of central bank as:
i) The note issuing agency. ii) Banker of the state. iii) As bankers bank.
Q8. What do you understand by the term balance of payment? How does disequilibrium arises in the balance of payment and how does it can be corrected.