Economics Paper I Past Paper 2012

Old-format sheets still shape the Economics Paper I past paper 2012, and this paper runs one question longer than the rest. Q.2 derives the market demand curve from indifference curves. Q.3 defines the multiplier and traces its effect on national income and employment. Q.4 compares the Fisher and Cambridge equations of money. Q.5 explains how credit money is created and lists its properties. Q.6 shows how a central bank controls inflation and deflation. Q.7 tests the slogan of trade not aid against Pakistan. Q.8 discusses the modern theory of international trade and its effect on cost. Q.9 closes with short notes on industrial protection and on the balance of payments as a domestic resource. This paper is one of only two in the cluster with a Q.9, so its range reads Q.2 to Q.9. This file holds the Part-II sheet only.

What this paper contains

  • This file carries Part-II (the descriptive part) of the paper.
  • Part-II — attempt any FOUR questions from Q.2–Q.9; each question carries 20 marks (Part-I holds the 20 MCQs, per the printed header)

Part-II questions

Q.2 — Explain as how the Market demand curve can be derived from Indifference curve approach? (20)

Q.3 — Define Multiplier. Also explain the impact of Multiplier on National income and employment of the economy. (20)

Q.4 — Compare and contrast the Fisher and Cambridge equations of money. (20)

Q.5 — Explain the process of creation of credit money and also discuss its properties. (20)

Q.6 — Explain as how Inflation and Deflation can be controlled by the Central Bank? (20)

Q.7 — Critically analyze the slogan of, “Trade not aid”. Is it possible with reference to Pakistan? (20)

Q.8 — Critically discuss the Modern Theory of International Trade as how it impacts cost effectiveness? (20)

Q.9 — Write notes on the following: (20)
(i) Protection policy of Industrial Development. (10)
(ii) Balance of payment as a domestic resource development. (10)

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