Economics Paper I Past Paper 2018
Parts split every question in the Economics Paper I past paper 2018. Q.2 states the bases of the IS-LM framework and asks whether it still guides policy. Q.3 sets notional aggregate demand against real aggregate demand and asks how equilibrium forms under each view. Q.4 analyses three shapes of the aggregate supply curve and traces fiscal policy through each shape. Q.5 explains arc and cross elasticities and their use in consumer decisions. Q.6 discusses the canons of taxation as the sheet spells them and tests Pakistan’s tax system against them. Q.7 defines the balance of payments, lists its parts, and analyses one year’s BOP for Pakistan. Q.8 closes with short notes on competition, on monetary policy tools, and on balanced and unbalanced growth. 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.8; each question carries 20 marks (Part-I holds the 20 MCQs, per the printed header)
Part-II questions
Q.2 — (a) State the bases of IS-LM framework (equations &establish equilibrium) and (15) comment whether it is a short run or long run analysis. State bases for your answer.
(b) Do you think this approach (a) above, is still applicable for policy formulation. (5) (20)
Q.3 — (a) How the concepts of notional aggregate demand (Keynesian) and real aggregate (10) demand (neo-classical), leads to economic fluctuations in the economy.
(b) How equilibrium is established in the market under the above (a) approaches. (10) (20)
Q.4 — (a) Analyze three different shapes of Aggregate Supply Curve (Constant, positively (10) sloped and vertical).
(b) Explain the role of shifts in Aggregate Demand and their impacts on economy (10) in all three types of Aggregate Supply Curves. Relate such impacts in response to Fiscal policy. (20)
Q.5 — (a) Explain Arc and Cross elasticities and analyze their role in decision making by (10) the consumers.
(b) Point out application of these theories; quote such examples and explain. (10) (20)
Q.6 — (a) Discuss major cannons of taxation and their relevance to tax system in Pakistan. (10)
(b) Do you think that the tax system in Pakistan is based upon cannons of taxation (10) (restrict your discussion to the application of cannons of taxation). (20)
Q.7 — (a) What is Balance of Payment? Point out its major components. (10)
(b) Analyze any one years’ BOP of Pakistan. (10) (20)
Q.8 — Write short note on any TWO of the followings. (10 each) (20)
(i) Perfect and Pure competition
(ii) Monetary policy and its tools to control of money supply
(iii) Balanced and Un-balanced growth theory
Economics Paper I Past Paper 2019 · All Economics Past Papers · Economics Paper I Past Paper 2017