Economics Punjab PMS Paper II 2009

PUNJAB PUBLIC SERVICE COMMISSION

COMBINED COMPETITIVIE EXAMINATION FOR RECRUITMENT TO
THE POSTS OF PROVINCIAL MANAGEMENT SERVICE. ETC. – 2009
PAPER ON : ECONOMICS (OPTIONAL)

PAPER II

TIME ALLOWED : THREE HOURS MAXIMUM MARKS: 100

NOTES:
(i) Attempt in English or Urdu Language.

(ii) Attempt THREE questions from Section ‘A’ and TWO questions from Section ‘B’.

SECTION “A”

1 “The Value of Money, other things being the same varies inversely as it quantity”. Discuss. (20)

2 What is meant by the term Marginal Efficiency of Capital and Marginal Efficiency of Investment. Show how it is used to arrive at the optimal level of investment ? (20)

3 State or explain the Keynesian “Principle of Effective Demand”. Highlight its importance in the theory of Employment. (20)

4 Discuss the life cycle of hypothesis of consumption and emphasize whether it takes into account the short and long-run consumption behavior. (20)

SECTION “B”

5 Differentiate Economic Growth with Economic Development. Discuss the main measures of Economic Development in a country. (20)

6 “Development of Agriculture is Extremely essential for Industrial Development in Pakistan”. Discuss the statement. (20)

7 What is Fiscal Policy? Discuss the role of Fiscal Policy in Economic Development of Pakistan. (20)

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