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Economics (Optional)
Appendix A (Outlines of Tests)

Paper

Marks 100 Appendix B (Syllabi and Courses of Readin )

Paper !
(This paper consists of two sections. The paper setter is required to divide the question paper into two parts in such a way that 05 questions are set from each section. Candidates will be required to attempt at least two questions form each part).

Se"tion # ($"ono%i"s T&eory)

(1) (') Basic conomics concepts! "ature and function of every economic system. "ature and scope of economic analysis. conomic terms. The ma#or se$ments of economics theory. %icro&economics and macro&economics. %icro&economics ((rice Theory)! (i) the (rice of mar)et mechanism. The influence of the price system on resource allocation* consumption patterns and income distribution. (ii) +etermination of price by supply and demand. The assumption of perfect competition. The theory of demand and utility. lasticity of demand and its measurement. The theory of cost and supply. quilibrium of the firm equilibrium of demand and supply in the short&run and lon$&run periods. (iii) (ricin$ of the productive factor. ,a$es* (rofits* interest and rent. %acro economic (income and employment theory) ! (i) %easurement of national income. Concept of ."(* and ""(* Circular flow of national income. Three approaches to national income measurement* income at factor cost* income at mar)et price and e/penditure approach. (ii) +etermination of the national income and employment. quilibrium level of national income* savin$* consumption and investment schedules and their inter&section. 0ay1s law of mar)ets and its refutation by 23eynes1 $eneral theory of employment& a$$re$ate demand* a$$re$ate supply* effective demand. (iii) Consumption function ! The propensity to consume. The multiplier and its calculation. 4o$ical identity of savin$ and investment. (iv) 5nvestment as determinant of effective demand.

(-)

+eterminants of investment. The mar$inal efficiency of capital. The accelerator and its interaction with the multipliers. The rate of interest and investment. (6) conomics* 0tatistics and %athematics! T&eir ro'in relations&ip(

S$CT#O)* ## $"ono%i"s Plannin in Pakistan

!( +( ,( -( conomics +evelopment throu$h plannin$! The concept of measurement of economic development. The imperfections of mar)et economy. The need and ob#ectives of economics plannin$. 0pecial features of (a)istan1s economy ! (rimary production* population pressure* capital deficiency* low income. +evelopment (lannin$ in (a)istan ! 7 brief comparison of the 8irst* 0econd and Third 8ive& 9ear plans with reference to their (a) si:e (b) ob#ectives (c) strate$ies (d) pro$ramme priorities and (e) financial resources. 0trate$ic 0ector of (a)istan1s economy! (a) 7$riculture 5ts strate$ic position in economics set up* its contribution to ."(! the e/istin$ draw&bac); measures to ma)e a$riculture a dynamic sector. (b) <uman resources development&population as a dynamic factor in the economic development of (a)istan. "on&material capital formation. (c) 5ndustries&(resent industrial comple/* =ustification of industrial development of (a)istan. (ublic* vs (rivate enterprise and industrial development. 5ndustrial development and 0tructural chan$es in the economic development of (a)istan.

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(d) (a)istan1s e/port sector and economic development. /port promotion schemes. 0carcity of forei$n e/chan$e. Trends in the terms of trade of (a)istan and their cases. (e) 7 brief discussion of (a)istan1s monetary and fiscal polices as reflected the 0econd and third 8ive&9ear plans. .eneral review of the economic situation in (a)istan. >ate of $rowth of (a)istan1s national income. The contribution of various sector. (er capital income causes of inequality of income distribution.

.(

Re"o%%ended Books*/ For section I:

0amuelson* (.7 0tonier* 7.<. and <ua$e* +.C ! ! conomics (%c.raw&<ill Company* "ew 9or)* 1?@1) 7 Te/t&Boo) of conomic Theory (4on$man* 4ondon* 1?@6)

For section I:
7drus* =.>. and %ohammad* 7.8. %eenal* 0.7. Aureshi* 75 (ed.) %ahbub&ul&<aq .ovt. of (a)istan -do-do! ! ! ! ! ! ! Trade* 8inance and +evelopment in (a)istan* (3arachi 1?@@) %oney and Ban)in$ in (a)istan (3arachi* 1?@@) The Third 8ive 9ear (lan and Bther (apers (>awalpindi* 1?@@) The 0trate$y of conomic (lannin$ C 7 Case 0tudy of (a)istan* (3arachi* B/ford Dniversity (ress* 1?@-) 8irst* 0econd and Third 8ive&9ear (lans of (a)istan >eport of the 8ood and 7$ricultural Commission (3arachi* 1?@0) (a)istan conomic 0urvey for the years 1?@-&@6* 1?@6&@5 and 1?@5&@@. (a)istan Bud$ets for the years 1?@6&@5* 1?@5&@@ and 1?@@&@E.