Economics Punjab PMS Paper I 2019

PUNJAB PUBLIC SERVICE COMMISSION

COMBINED COMPETITIVE EXAMINATION FOR

RECRUITMENT TO THE POSTS OF

PROVINCIAL MANAGEMENT SERVICE-2019

SUBJECT:
ECONOMICS (PAPER-I)

TIME ALLOWED: THREE HOURS  MAXIMUM MARKS: 100

NOTE: Attempt Any Six Questions in All. Four from Section-A and Two from Section-B. Calculator is allowed (Not programmable)

SECTION-A

Q No. 1: (a). How does Market Equilibrium take place?

(b). Trace and Diagrammatically exhibit the causes of changes in Market Equilibrium.  (8 + 8 = 16 Marks)

Q No. 2: (a). What is the meaning of and conditions for Price Discrimination?

(b). Explain different degrees of Price Discrimination. (4 + 12 = 16 Marks)

Q No. 3: (a). Which market structure has the existence of Cartels?

(b). What are the different types of Cartels? (4 + 12 = 16 Marks)

Q No. 4: (a).Assuming there is only one variable input, how do firms determine the employment of labor under perfect competition?

(b). When is there Backward Bending Supply curve of Labor? (12 + 4 =16 Marks)

Q No. 5: Write comprehensive notes on:  i. Cardinal Utility Approach  ii. Monopolistic Competition (8 +8-16 Marks)

Q No. 6: Explain the law of variable proportions with the help of a diagram.  (16 Marks)

Q No. 7: Define long run supply curve of a firm. Explain with diagrams LRSC for (i) Increasing cost industry (ii) Decreasing cost industry  (8 +8=16 Marks)

SECTION-B

Q No. 8: (a). Differentiate between the following by giving examples:

i. Continuous and Discrete Variables
ii. Explicit & Implicit Functions
iii. Constant and Parameters iv. Relation and Function

(b). Solve the following model algebraically and diagrammatically:

qd = 60 – 2p
qs -15 + p
qd = qs

(8 + 10 = 18 Marks)

Q No. 9: (a) Given the following model, C = 65 + 0.6Y I = 70 + 0.2Y
(i) Find and plot equilibrium level of Income, Consumption and Investment.
(ii) Calculate the value of Multiplier.
(b) Find Profit Maximization level of Output, Maximum Profits and Prices charged by the firm TR = 22q – 0.5q2 TC = 1/3 q3 + 8.5 q2 + 50q + 90 (10 + 8 = 18 Marks)

Q No. 10: (a) What is Constrained Optimization? Explain with examples.
(b) Minimize the following function: y = u2 + v2, subject to u + v = 4
(c) Maximize the following function: u = 2x3 + 3y2 + 3xy subject to 2x + 3y = 8 (4 + 7 + 7 = 18 Marks)

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