Instructions, Syllabus and relevant information for

Private students in Master Program for the session

2013 and onwards

Department of Economics
Islamia College Peshawar
(A Public Sector University)
 INSTRUCTIONS FOR A CANDIDATE

For M.Sc degree, a candidate will be required to pass 11 papers. There will be five papers in the
previous year and six in the Final year. There will be four compulsory papers “Microeconomic
Theory, Macroeconomic Theory, Mathematical Economics, Statistics for Economists in previous
and one compulsory paper “Econometrics” in final year. Student will be required to appear in the
following five papers in the previous year while the “Econometrics” will be offered as
compulsory paper in final year.

i. Microeconomic Theory
ii. Macroeconomic Theory
iii. Mathematical Economics
iv. Statistics for Economists
v. Public Finance & Monetary Economics
vi. Econometrics

1. Out of these, the first five will be taken by the students in the previous year while the last
one namely “Econometrics” will be taken in the final year as compulsory paper.

2. In the final year, the paper of “Econometrics” will be compulsory. Besides this, the
students will have to select five papers out of the following courses.

i. Islamic Economics
ii. Agriculture Economics
iii. Development Economics
iv. International Economics
v. Managerial Economics
vi. Economy of Pakistan

3. Each paper will of 100 marks.

4. Student appearing in the final examination will be required to appear in the Viva-voce
examination of 100 marks.

5. The maximum choice in theory papers shall not exceed 100 percent and the maximum
time allowed for each paper will be 4 hours.
6. The total performance of a candidate shall be indicated on the basis of division, to be
determined on percentage of marks as noted under.

First division 60 percent and above, Second division 45 percent and above

7. The passing marks in each paper shall 40 percent and a candidate will be required to
obtain 45 % in aggregate to qualify the examination.

8. Two chances for the improvement of Division from annual examination within a period
of two consecutive years

9. Contents and bibliography of the mentioned groups/ papers is given as follows.

M. Sc Economics 2 years program
 Previous Year

Contents of Courses

Microeconomic Theory

1. Introduction:

Introduction to Microeconomics, Subject matter of Microeconomics

2. Theory of Consumer Behavior

Preferences, Cardinal & Ordinal Approach, Consumer Equilibrium, Comparative Static

Analysis, Derivation of Compensated and Uncompensated Demand Curves, Slutsky
Elasticities, Market Demand Curve, Theory of Revealed Preference, Uncertainty and
Risk, Decision under Uncertainty, Expected Utility and Risk

3. Theory of Production

Production Function, Fixed and Variable Inputs, Short-run und Long-run Production,
Production with one Variable Input, Graphical Derivation of Total, Average and
Marginal Product, Laws of Return, Production with two Variable Inputs, Production with
Isoquants and Iso cost Lines, Optimization of Inputs, Elasticity of Substitution,
Traditional and Modern Cost Theories in the Short-run and Long-run Cost Curves

4. Theory of Firm and Market Organization

Pure and Perfectly Competitive Market, Equilibrium of the Firm in Short-run and Long-
run, Equilibrium of Industry in Long-run, Derivation of Market Supply Curve,
Decreasing Cost, Constant Cost and Increasing Cost of the Industry, Monopoly Market,
Short-run and Long-run Equilibrium of Monopoly, Price Discrimination, Bilateral
Monopoly, Multi-plant Monopoly, Natural Monopoly, Monopsony, Monopoly and
Economic Efficiency, Regulation of Monopoly, Monopolistic Competition, Equilibrium
of Firm and Industry under Monopolistic Competition, Oligopoly, Non-collusive
Oligopoly, Collusive Oligopoly, Market Solution to Oligopoly

5. General Equilibrium
 Pure Exchange, Edgeworth Box, Pareto Optimality, Contract Curve, Production
Possibility Curve, Production Efficiency Equilibrium, Bilateral Equilibrium with
Production, General Equilibrium, Disequilibrium in Exchange and Production, Multiple
Equilibrium

6. Welfare Economics

Utility Possibility Curve and Social Indifference Curves, Classical Utilitarian and
Walrasian Social Welfare Function, Pareto Optimality in Production and Consumption,
Welfare and Competitive Equilibrium, Externalities and Public goods, Welfare and
Competitive Equilibrium

7. Theory of Distribution

Demand for and Supply of Factors of Production, equilibrium in Factor Market under
alternative Market Conditions

References:

1. Koutsoyiannis, A.: “Modern Microeconomics”, McMillan, (Latest edition)

2. Ferguson, C.E. and Gould, J.P. ”Microeconomic Theory”, Richard D. Irwin, Inc.
3. Nicholson, W. “Microeconomic Theory”, The Dryden Press, New York.
4. Silberg, Eugene. “The Structure of Economics”. A Mathematical Analysis, 2nd,
edition, McGraw-Hill Publishing Company, 1990
5. Hirshleifer, J. “Price Theory and Application”, Prentice-Hall International edition
Handerson, Jame M. and Quandt, E. Richard, “Microeconomic Theory”.
A Mathematical Approach”, McGraw-Hill Company, New York
 Macroeconomic Theory

1. Basic Concepts

Introduction to Macroeconomics, Subject Matter of Macroeconomics, Brief account of

the Development of Macroeconomics after World War-II,

2. National Income Accounting

The concept of Theory and Measurement of National Income Accounts, Product Side and
Income Side, Measurement of the Components of National Accounts, Price Indices,
Construction and Problems, Real Vs Nominal GNP

3. Aggregate Demand and Income Determination

Equilibrium Output, Consumption & Aggregate Demand, Saving Function, Investment &
Aggregate Demand, Determination of Equilibrium level of Income and Output, Effects
on Equilibrium of Shifts in Aggregate Demand (Multiplier Analysis) and Changes in
Government Spending, Taxes and Transfer Payment

4. Consumption Function

Absolute Income Hypothesis, Relative Income Hypothesis, Permanent Income

Hypothesis, Life-cycle Hypothesis, Reconciliation of various Hypothesis, Other Factors
influencing Consumption, i.e., role of Interest rate, Price expectation, Wealth and Income
distribution

5. Theory of Investment

Capital Stock Vs Investment, Marginal Efficiency of Capital, Marginal Efficiency of

Investment, Theories of Investment, i.e., Profit Theory, Accelerator Principle, Role of
Interest rate and Finance influencing Investment demand

6. Income, Prices and Employment

Aggregate Demand Curve, Aggregate Supply Curve, Level of Output and Employment,
Wages & Prices, Say’s Law of Market, Effects of changes in Money Supply and Money
 Demand on Output and Prices etc., Deviation in Classical and Keynesian Framework,
Classical Theory of Output, Interest and Wage Determination, Keynesian Theory of
Goods Market Equilibrium (IS Curve), Money Market Equilibrium (LM Curve), General
Equilibrium, Shifts in IS-LM Curves

7. Inflation, Output and Unemployment

Theories of Inflation (Cost-Push Vs Demand-Pull Inflation, Philips Curve, Role of

Expectations, Trade-off between Inflation and Unemployment in the short-run and long-
run, Stabilization Policies (Classical/Keynesian/Monetarist/Neo-classical Debate)

8. Growth Models and Business Cycle Theory

Concepts, Models of Business Cycle (Kaldor, Hicks, Samuelson, Real Business Cycle
Theory), Growth Models (Harrod Domar and Solow)

References:

1. Mankiw, N. Gregory: “Macroeconomics”, Worth Publishers (Latest edition)

2. Abel, Andrew B. and Bernanke Ben S.: “Macroeconomics”, Addison-Wesley
Longman, Inc. International Student edition (Latest)
3. Shapiro, E.: “Macroeconomic Analysis”, Galgotia Publications (Latest edition)
4. Dornbush, R. and Fisher S.: “Macroeconomics” McGraw –Hill International
(Latest edition)
5. Branson, William H.: “Macroeconomic Theory & Policy, 3rd edition, Harper &
Row Publishers
 PUBLIC FINANCE AND MONETARY ECONOMICS

PART-1

1. INTRODUCTION:

- Meaning and Nature of Public Finance

- Methods of Public Finance
- Government Finance and Business Finance
- Evolution of Public Finance
- Importance of Public Finance
-
2. THE PUBLIC EONCONOMY:

- Objectives of Budget Policy: Allocation, Distribution, Stabilization and

Growth
- Public Marketing

3. GOVERNMENT EXPENDITURE:

- Meaning of Public Expenditure

- Types of Public Expenditure

- Growth of Public Expenditure

- Major Heads of Public Expenditure

- Budget and Welfare

4. PUBLIC REVENUE (TAXATION):

- Sources of Public Revenue

- Classification and Objectives of Taxation

- Principles of Taxation

-Direct Taxes, Income Tax and Corporation Tax

5. PUBLIC DEBT:

- Meaning and Types of Public Debt

- Importance and Justification of Public Debt

-Pakistan Debt Servicing problems

6. FISCAL POLICY

- Meaning

-Objectives of Fiscal Policy

-Tools of Fiscal Policy

References:

1. Due.J.F. and Friendlaender Ann F. Government Finance. 6th edition.Irwin Series

1977
2. Aronsom, J.R. Public Finance, McGraw Hill Book company, International Student
Edition. 1985
3. Musgrave, R.A. and Musgrave, R.A. and Musgrave. P.B. Public Finance in Theory
and Practice McGraw Hill Book Company, International Student Edition, 1954
4. Rosen, Harvey S. Public Finance, McGraw Hill International Editions Economic
Series. 1999.
5. Cullis J. and Jones, P. Public Finance and Public choice Analytical perspectives,
McGraw Hill International Edition Economic Series 1992
6. Govt. of Pakistan, Economic Survey, Yearly Publication, Ministry of Finance,
Economic Advisory Wing, Islamabad

PART-II

1. MONEY AND ITS FORMS

- Definition
- Barter System and Primitive Money
- Credit Money
- Currency, Coin, Gold Bullion, Paper etc.
2. FUNCTIONS OF MONEY
- Functions of Money and Gresham’s Law
3. QUANTITY THEORY OF MONEY
- Fisher’s
- Cambridge
 - Chicago School
4. CENTRAL AND COMMERCIAL BANKING.
- Central Banking and its Functions and Introduction to Monetary Policy, Its
Goals and Objectives.
5. MONEY AND CAPITAL MARKETS.
- Money Market Instruments
- Capital Markets
- Financial Intermediaries

References:

1. Ahmad. Z. Iqbal. M and Khan. Muhamad F(eds) Money and Banking is Islam.
Islambad: Institute of Policy Studies 1983
2. 2. Giersch. H. and Others Essays on Inflation and Indexation. Washington, D.C. the
American Enterprise Institute. 1974
3. Chandler, L.U. The Economics of Money and Banking, Harper and Row ( Latest
edition)
4. Rose. P.S. Money and Banking, Business Publication. Inc, 1983
5. Meenai, S.A. Money and Banking in Pakistan. Oxford University Press 1984.
6. Habbard, G.R. Money, The Financial System and the Economy, third Ed. Addison
Wesly, new York, 2000
 MATHEMATICS FOR ECONOMISTS

1. INTRODUCTION:

Nature of Mathematical Economics, Basic Concepts – constants, variables,

parameters and coefficients, Classification of numbers and the Real Number
System. The concept of Set, Ordered pairs and Cartesian Products, functions and
Relations. Types of functions – Linear, Quadratic, hyperbolic. Logrithmic and
Expnential functions, Graphi representation and the idea of domain and range.
Equations and Identities, Mathematical Models and their ingredients.

2. EQUILIBRIUM ANALYSIS:

Partial market equilibrium-linear and non-linear model

National Income Equilibrium
IS-LM Equations and Models

3. LINEAR ALGEBRA.

Vectors and Matrice, Matrix operations- addition., subtraction, scalar

multiplication and multiplication of matrices Laws of matrix operations-
commutative, associative and distributive Laws. Determinants and their
properties. Minors and cofactors, Laplace Expansion. Matrix Inversion. Solution
of system of linear equations, Cramer’s rule for Matrix solution, Input-Output
Analysis

4. COMPARATIVE STATISTICS AND DERIVATIVES:

The Concept of Limit Theorems: continuity and differentiability of a function.

The derivative and the rules of differentiation. Differentiation of functions
involving more than one choice variable Partial and Higher order partial
derivatives. Differentials and total differentials. Differentiation of Exponential
and Logarithmic Fuctions, Applications of derivatives in Economics( Total,
average and marginal relationships, Elasticities, Production Functions and their
 average and marginal products. Returns to Scale Cobb-Douglas production
function and the constant elasticity of substitution (CES) production functions).

5. OPTIMIZATION

Optimum values and Extreme value, point of Inflection, Relative maximum and
minimum. First order and second order conditions for finding extreme values.
Profit maximization
Unconstrained optimization of functions with more than one choice
variable. First and Second order conditions for optimality under constrained
optimization. Utility maximization. Least cost combination of inputs..

6. INTEGRAL CALCULUS:

Integration, Rules of Integration, definite and indefinite Integration. Economics

applications of integral

7. DIFFERENTIAL EQUATIONS:

First order linear differential equation with constant coefficient and constant term,
variable coefficient and variable term

8. LINEAR PROGRAMMING

Linear , Programming as a special case of Optimization, Graphic solutions,

Simplex Method, Duality.

References:

1. Chiange, A.C. Fundamental Methods of Mathematical Economics. 3rd Edition,

McGraw Hill, 1985.
2. Yamane, T. Mathematics for Economists. 2nd edition, Prentice Hall.
3. Allen, R.G.D, Mathematical Analysis for Economists. London, MacMillan ELBS,
1976.
4. Lewis J. Parry Introduction to Mathematics for Students of Economics 2nd edition.
The MacMillan press Ltd. 1977.
 5. Huang, D.S. Introduction to the use of mathematics in Economic analysis. John
Villey and sons. New York.
6. Reston, M.H. Elementary Matrices for Economics. Routledge and Kegan Paul.
London
7. Handerson. Jame M & Auandt. E. Rechard icro-Economic Theory: a
nd
Mathematical approach. 2 edition. McGraw-Hill Kogakusha, Ltd.

STATISTICS FOR ECONOMISTS

1. DESCRIPTIVE STATISTISCS:

Data Collection and presentation. Frequency distribution and Graphs. Histograms,

Frequency Curves. Measure of Central tendency. Mean, Median, Mode, Geometric Mean
and Harmonic Mean, Quartiles, Deciles, Percentiles, simple and Weighted measures of
dispersion. Absolute and Relative measures of dispersion. Skewness, Kurtosis.

2. INDEX NUMBER:

Simple and weighted index numbers. Theoretical Tests. Application of Index Numbers to
Business Economics

3. CORRELATION & REGRESSION:

Definition of Correlation and its measurement. Partial and multiple Correlation,

Objectives of regression analysis, simple linear regression model. Method of least square.
Regression lines and Estimators. Prediction from regression

4. ELEMENTS OF PROBABILITY:

Probability of an event, Addition and multiplication, laws of probability, Independent and

dependent events, Random variables and expectation Basic Concepts of binomial,
Posisson and normal distributions

5. SAMPLING TECHNIQUES:

Difference between sample and population. Objectives of sampling, different types and
techniques of sampling. Sampling distribution of means and standard error

6. INFERENTIAL STATISTICS:
 Basic concepts of estimation, Hypothesis testing, Testing of Hypothesis about mean,
difference between two means ( Large and Small samples) using Z, and t-statistics.
Fitting of distribution using Chi-square distribution, Confidence intervals, inference in
simple regression and Correlation.

7. ANALYSIS OF VARIANCE AND EXPERIMENTAL DESIGN:

Analysis of Variance of one way and two way classification. Experimental design and its
different types.

8. INTERPOLATION:

Interpolation with equal and unequal intervals using Newton’s and Lagrange’s Methods.

9. RESEARCH METHODS:

The form and purpose of Social Research. Types of research and research methods. The
research design and processes. Selection of a research topic and preparing a Research
Plan. Purpose of study, Types of investigation. Measurement of variables. The analysis of
research data, presenting the research results.

References:

1. Walpole, Raynold E., Introduction to Statistics, McMillan Publishing Co. Inc, N.Y(Latest
edition)
2. Chaudhry, Sher Muhammad, Introduction to Statistical Theory Part-I, II and appendix
llmi Kutab Khana, Lahore.
3. Spiegal, M.R., Theory and problems of Statistics, (Schaum’s Outline Series).
4. Bower, E.K. & Starr, M.k., Statistics for Business and Economics, Int. Students edition
McGraw Hill Book Co.
5. Bluman, Allan G., Elementary Statistics A step by step approach, 3rd edition McGraw
Hill.
6. Umma, Sekaran, Research methods for Business-A Skill Building Approach, John Wiley
& Sons In.
7. Lesikar & Pettit, Report Writing for Business. 10th edition McGraw Hill Int. edition.
8. Baker, Theiese L., Doing Social Research, 2nd edition McGraw Hill Inc. Int. edition.
 Final Year

ECONOMETRICS

1. INTRODUCTION TO ECONOMETRICS:

Definition, scope of Econometrics, Econometrics Models, deterministic and Stochastic

Models. Theoretical and applied econometrics, Methodology of Econometrics Research

2. SIMPLE LINEAR REGRESION MODEL:

Two-variable linear model, Least square method and its assumptions, Maximum
likelihood method, Properties of estimators. Properties of OLS Estimators. r 2 as a
measure of goodness of fit. Variance and Standard errors of estimates. Tests of
significance and confidence intervals of the estimated do-efficient, Prediction.
Conditional and un-Conditional Forecasting errors.

3. GENERAL LINEAR REGRESSION MODEL:

General Linear Regression Model and its estimation. Co-efficient of Multiple
determination (R 2) and adjusted co-efficient of Multiple determination ( R 2). Tests of
significance and confidence intervals of estimated co-efficients using Z and t Statistics.
Testing the overall significance of regression co-efficient using F-Statistics.

Matrix approach to linear regression model and estimation of parameters.

Transformation of Non-linear relationship to linear and its estimation.

4. ECONOMETRIC PROBLEMS:

Autocorrelation, Heteroscedasticity and Multi-collinearity. Detection, Consequences and

remedial measures.

5. SOME FURTHER PROBLEMS IN REGRESSIION MODEL:

Errors in variable, Instrumental variables, Regression on dummy dependent and

independent variables. Distributed lad models (Koyek transformation, Polynomial lag)
 Missing observations, pooling of cross-sectional and time series data, Logit and probit
models, Analysis of time series and binary time series data.

6. SIMULTANEOUS EQUATI0ON MODELS:

Types of simultaneous equation systems, the identification problem, simultaneous

equation methods ( Indirect least squares. Three stage least squares).

7. SIMPLE LINEAR MODEL WITH VARYING COEFFICIENT

Systematically varying coefficients models under alternative specifications, randomly

varying coefficient models under alternative specification. A model for discriminating
among alternative varying coefficients specifications

References:

1. Gujrati. Damodar N. Basic econometrics. 3rd edition. McGraw Hill International edition (
1998).
2. Johnston. J Econometric Method. 3rd edition McGraw-Hill ( 1991)
3. Koutsoyiannis, A. Theory of Econometrics, 2nd edition MacMillan EL-BS.
4. Pindyck. Robert. S and Rubinfeld, Daniell, Econometrics Models and Economic Forecasts,
2nd edition McGraw-Hill. International edition (1981).
5. Maddala, G.S. Econometrics, McGraw-Hill, International edition (1988).
6. Madnani, GM.K, Introduction to Econometrics, Principles and applications 5th edition IBH
Publishing ( 1988)
 DEVELOPMENT ECONOMICS

1. CONCEPTS AND MEASUREMENT OF ECONOMIC DEVELOPMENT:

Economic Development and Growth, characterization of underdevelopment,

measurement of economic Development, Pattern and sources of growth with reference to
developed and under developed countries.
2. THEORIES OF ECONOMIC DEVELOPMENT AND GROWTH:

Major Growth Theories, big Push, low level equilibrium trap, balance and unbalanced,
dualistic theory, dependency theories, structural/ technological theories, Rostow’s stages
of economic growth: with reference to Pakistan.
3. FACTORS OF PRODUCTION AND DEVELOPMENT PROCESS:

Role of major factors of development, land, labour, capital, entrepreneurs, technical

change/efficiency, technology and development, transfer to technology, issues and
choice.

4. Agricultural and Economic Development:

Agrarian structure and role of agriculture in economic development, structural

transformation strategies for agriculture development, Green Revolution, pricing policies,
agricultural reform and their role in development.

5. INDUSTRIALIZATION AND ECONOMIC DEVELOPMENT:

Need and Role of Industrialization in development, sectoral priorities and

industrialization, industrialization strategies, import substitution and export led industries.
Industrialization and environmental impacts.

6. RESOURCE MOBILIZATION:

Historical review of domestic and foreign resource mobilization and related issues.
Taxation Structure, implication of foreign loans and aid capital market and mobilization
of saving debt and det servicing problems with reference to Pakistan. Monetary and fiscal
policies in resource mobilization.

7. HUMAN RESOURCES AND ECONOMIC DEVELOPMENT:

 Global gender issues international comparison of Human Resources, related indicators
and their role in development( HDI, PQLI) etc.
Role of education and women in development. Population growth, its structure and
related problems I Pakistan. Human resource development in Pakistan, Human
development index physical quality of life index.

8. CONTEMPORAY DEVELOPMENT ISSUES:

Poverty and income distribution, rural and urban migration, unemployment and under
employment, globalization, decentralization, devaluation, good governance, structural
adjustments.

9. DEVELOPMENT PLANNING:

Economic development through planning, market imperfections, price distortions,

theories of economic planning, input/output models, construction of plans, targets and
project techniques, determinants of growth, Strategies of economic planning.

10. DEVELOPMENT PLANNING IN PAKISTAN:

Plan formation, implementation, evaluation and an overview of palnning experience of

Pakistan, Annual and perspective planning in Pakistan, Latest five years plan, detailed
analysis and evaluations.

References:

1. Todaro. Michal P. economic Development in the Third World, ( 5th edition) Longman.
New York and London 1995.
2. Thrilwall, A. P. Growth and Development with Special Reference to DDeveloping
Economic, ( 5th edition), The Mac Millon Press Ltd., London, 1994.
3. Meier, G. M., Leading Issues in Economic Development, ( 6th edition), Oxford university
press, New York, 1995.
4. Higgins, B., Economics Development: Problems, Principles and Policies, W Norton and
company, New York, 1968.
5. Little, Lan., Economic Development Theory, Policyt and internatiuonal Relations, Basic
Books, new York, 1983
6. Zuuekas, Clarence, Economic Development: An introduction, MacMillan Press, London,
1975.
7. Perkns, Gillis, M. D,. Roemer M, and Snadglas, d. N, Economic Development, Norton,
New York, 1983.
8. Lewis, Arthur, Development Planning, Gearge Alien and Unwing 1966.
9. Ha, M., The Strategy of Economic Planning, Oxford University Press, Karachi, 1963.
10. Chaudhry, Aslam M, Agricultural Development and Public Policies, American Bok co
Rawalpindi, 1989.
11. World Development. World Bank Annual Report, (lates).
12. Herrick, B. & Kindleberger, C.P. Economic Development, 4th edition, McGraw-Hill
1984.
13. Nafziger, E. Wayne the Economics of Developing Countries, 3rd edition Prentic Hall,
1997.
14. 14. Qureshi M.I. Planning and Development in Pakistan, Vanguard Books Ltd. 1984.
 MANAGERIAL ECONOMICS

1. INTRODUCTIONTO MANAGERIAL ECONOMICS:

Definition and Nature of Managerial Economic, Optimization techniques and Managerial

Economics

2. DEMAND THEORY AND ANALYSIS OF DECISION MAKING

The demand function and demand curve. Price elasticity of demand , income elasticity of
demand and cross elasticity, demand estimation and forecasting.

3. COST CONCEPTS FOR DECISION MAKING:

Accounting versus Economic costs concepts, Contribution Analysis, Breakeven Analysis,

Cost Estimation and Forecasting.

4. Pricing Analysis and Decisions:

Dimensions of Pricing, Pricing techniques, Price determination, Pricing Policy for

established products and new products pricing.

5. ADVERTISING AND PROMOTIONAL DECISIONS:

- Optimal Advertising Expenditure under ceteris paribus conditions,

- Advertising and promotional expenditure when mutual dependence is recognized,
- Uncertainty in advertising.

6. CAPITAL BUDGETING AND INVESTMENT DECISIONS:

Capital budgeting with unlimited availability of funds

a. The Net Present Value Criterion

b. The Internal Rate of Return Criterion
c. The profitability index criterion
d. The pay back period criterion.
e. The average rate of return criterion
Mutually exclusive investment:

a. The superiority of NPV over IRR for Mutually exclusive investment

b. The superiority of NPV over the profitability index
c. Capital budgeting given limited availability of capital

References:

1. Douglas, Evan J,. Managerial Economics Theory: Practice and Problems, Prentice
Hall International Edition 1991.
2. Pepper, Larry C. and Bails, Dole G., Managerial Economics Theory and application
for decision-making.
3. Peterson, H. Craig and Lewis, w. Cris, Managerial economics, McMillan Publishing
Company New York 1996
4. Salvatore, D., Managerial Economics in a Gloabal Economy, McGraw-Hill Book co,
New York, 1995.
5. James L. Pappas, Managerial Economics, The Dryden Press International Edition,
1987.
6. Duncan Reekie W. and Jonathan n. Crook, Managerial Economics, 3rd Edition Phillip
allan Publishers Limited, 1975.
7. Paul G. Keat, And Philip K. Y. Young, Managerial Economics. Economic tools for
today’s decision makers 2nd edition. Prentice Hall international Editions, 1996.
 ECONOMY OF PAKISTAN

1. Geographical characteristics and general resources description, location and climatic

conditions, Natural resources, Manpower, State of Technology, comparison with an
advance country like the U.S.A. GENERAL Economic Condition at Present.

2. IDEOLOGICAL AND STRUCTURAL CHANGES:

I. Emphasis on Islamic Values.

Elements of Socialism, Islamic Socialism

ii. Nationalization, description and Evaluation of nationalization of industries- the

reasons for Nationalization and Efficiency of Nationalized Vs private Industries.

iii. Income distribution and valuation of Efforts for Greater Equality

3. POPULATION:

I. Malthusian theory of Population and its’ Applicability to Pakistan

II. Distribution by: Province, Age, Sex, Education, rural and Urban, Industrial and
Agricultural
III. Growth rate, Death Rate, Birth Rate Crude and Refined net Rate of Growth,
Projection
IV. Family Planning, Meaning, Problems of family Planning in Pakistan. Movement
and Organization for family planning,. Evaluation of Family Planning in Pakistan.

4. AGRICULTURE:

i. Significance of Agriculture in Pakistan’s Economy in terms of employment,

Export contribution of G.N.P. and supply of industry
ii. Description and Evaluation of Government’s Efforts in providing credit,
Irrigation. Mechanization. Better Sees and Insecticides
iii. Province-wise Distribution of Agricultural land by system of irrigation and major
Crops
iv. Thorough Description and Evaluation of 1958 and 1972 land reforms.
 5. INDUSTRY:

i. Major Industries of Pakistan, Distribution of Industries by Provinces

ii. Evaluation of Industrial development in Pakistan
iii. Description and Evaluation of Government’s Efforts in financing and providing
other facilities for industrial development, Description and evaluation of various
Organization and Agencies for Industrial Development.
iv. Growth of Entrepreneurial Class

6. INFRASTURCTUR, EDUCATION, TRANSPORTATION, INSURANCE, POWER

AND BANKING:
7. FOREIGN TRADE:

Major exports, major imports, balance of payments and their magnitude, Trade policies.

8. MONETARY AND FISCAL POLICIES:

Monetary and Fiscal Policy, the Role of State bank, Description and Evaluation of the
current Budget and taxation policies of Pakistan, debt Problem and Debt Servicing.

9. PLANNING:

i. Planning Organization, Objective, Methods of financing, Stragtegy and

Evaluation
ii. Brief and General description of the 1st, 2nd and 3rd Five year Plans.

10. PRICES:

Trends of Inflation: An Evaluation of its Causes, and the measures adopted to check it.

References:

1. Zaidi, S. Akbar, Issues in Pakistan’s Economy of Pakistan, Oxford University Press(

Latest Edition)
2. Saeed, Kh, Amjad, The Economy of Pakistan, new fine Printing Press Lahore (latest
Edition).
3. Ahmad, Viqar. And Amjad Rashid, The Management of Pakistan’s Economy, Oxford
University Press 1984.
4. Economic Survey of Pakistan, Published by Govt. Of Pakistan ( Lates)
5. Papanek. G.F, Industrial production and Investment in Pakistan, Pakistan Development
reviews. Autumn, 1964.
6. H. Bergan, A. Personal Income Distribution and personal savings, Pakistan development
Review, summer, 1967.

AGRICULTURAL ECONOMICS

1. Definition and Scope: role of Agriculture in Economic Development

Agriculture traditional economics, Characteristics of the problems of agriculture;
Case studies
2. Agrarian Structure: Land Tenure Systems and land reform: Case studies
3. Agriculture marketing: the need for marketing marketing channel approaches to the
study of marketing, Case Studies
4. Agriculture prices; Role of Government: subsides; Prices floors and prices ceilings,
Case studies
5. Agriculture credit; the need for credit; sources of credit, classification of credit, Case
studies.
6. Mechanization: advantages and disadvantages: appropriate technology; impact on
employment, productivity and income.

References:

1. Margret, Gapstick; The Economics of Agriculture, London; George Alien Urwin Ltd.
2. Thorbeke, Erike; The role of Agriculture in Economics; new York, Columbia
Univeristy Press 1988 ( Latest Edition).
3. Ellis. F. Peasant Economics, Cambridge University Press, new York ( 1996).
4. Law, A. Agricultural Development: is Southern Africa Tomes Currey, London
(1989).
5. Chatak, S. & K, Ingersent Agriculture and Economic Development Wheatsheaf
Books Ltd. U.K ( 1984).
 INTERNATIONAL ECONOMICS

1. INTRODUCTION TO INTERNATIONAL ECONOMICS:

The scope and significance of international economics, Distinguishing Features of

international Trade, Foreign Trade and National Interest.

2. THE PURE THEORY OF INTERNATIONAL TRADE:

The basis of trade: The Classical and Hecksher-Ohlin models, empirical evidence and
critical appraisal of these models, Factor intensity reversal, the Leontief paradox,
Alternate theories of trade- Human skills, technology and product cycle theories, Use of
indifference curves, offer curves, and box diagrams for exposition of trade theory.

3. COMMERCIAL POLICY:

The case for and against free trade: Theory of tariffs, infant industry argument, The
effective rate of protection, Optimum tariffs, retaliation, Trade barriers-taxes, subsidies,
and quantitative restrictions, Non-tariff barriers-export cartels and dumping, International
institutions promoting trade, GATT, UNCTAD, WTO an European common Market.

4. INTERNATIONAL TRADE AND ECONOMIC GROWTH:

Trade and growth, mutual effects of growth and trade in the context of small and large
countries. Immiserizing growth, Problems faced by developing countries, Market
barriers, secular decline in term of trade ( The singer-prebish thesis)

5. ECONOMIC INTEGRATION:

Types and reasons for economic integration. The theory of customs union, Static and
dynamic effects of customs union. Economic integration among the developing countries,
SAARC.

6. THEORY OF EXCHANGE RATE DETERMINATION:

Determination of fixed and flexible exchange rate, Purchasing power parity, elasticity,
monitory approach, portfolio approach, Debate on fixed and flexible exchange rates,
Walras approach to exchange rate determination, Devaluation, appreciation and
 depreciation, expenditure switching policies. Elasticity and absorption approaches to
devaluation and their synthesis , Monetary approach to balance of payment.

7. BALANCE OF PAYMENTS:

Balance of payments accounts, Autonomous and accommodating items Dis-equilibirum

in balance of payments and corrective measures

8. INCOME ADJUSTMENT MECHANISM:

Income determination in an open economy, the foreign trade multiplier, forign

repercussions, national income and the balance of payments, plicies for internal and
external balnce Swan’ and Mundell models and policy assignments.

9. INTERNATIONAL MONETARY SYSTEMS:

Characteristics of a good international monetary system, theBretton woods System, its

major weaknesses and its collapse, the present of managed flexibility, its apparaisal and
the need for reform, IMF conditionaities and structural adjustment programmes, World
Bank and Regional Development Banks (Asian Bank and Islamic Development Bank)

References:

1. Chacholidades, Miltiades, International Economics, McGraw-Hill publishing company,

1990.
2. Salavator, Dominick, Internationla Economics International Edition, 6th edition, Prentice
hall International, Inc, 1998
3. Krugman, Paul R. And Obstfeld, Maurice, Internatiional Economics theory and Plicy (
$th edition) . Addision- Wesley 1997.
4. Husted Steven and Melvin, Michael, International economics, ( 3rd edition) Harper
Collins College Publisher, 1995.
5. Hhingan. M.L Internaional 3rd revised edition, Konark Publishers. Pvt. Ltd. 1995.
6. Salavtore, Domnich, theory and Prolems of International Economics, 2nd edition,
International Edition, Shaum’s Outline Series, 1987.
7. Chacholiades, Miltiades, Principal of International economics, new York, McGraw_ Hill
co. 1981.
8. Bosodersten International Economics. New York, Harper and row, ( Latest edition).
9. Caves, R.L and Jones, R.w. World Trade and payments An introduction. Boston. Little
Brwon and company(Inc) (latest edidtion).
10. Ingram, James, International Economics, 3rd ed., John wiley & sons, IW4(JCI)
11. Grubel, Herbert G. International Economic, Homewood Illinoesa, Richard D. Irwin (ins.)
Latest edition.
12. Heller. H.R. International Trade Theory and Empirical Evidence, Englewood Cliff’s N.J.
Prentice-Hall, ( Latest edition)
13. Root, Franklin R, International Trade and Investemetn, S.W. Publishing Co., (latest
edition)
14. Ellsworth, P.T. Internatiional Economy London, McMillan Publsihsing Co., (latest
edition)
15. Yeats, A.J, Trade Barriers, Facing Developing Countries, London, McMillan Publishing
Co., ( Latest edidtion)
16. Meier, G.,. Problems of world Menetary Order, Oxford University press. ( Latest
edidtion)
17. Meier, G.M, International Econmics of Development, Harper and Row. New York, (
Latest edition)
18. Bosodersten, International Economics, 3rd ed., MacMillan press, 1994 (B.S.)
 ISLAMIC ECONOMICS

1. The Foundation and Main Features of an Islamic Economic System

a. Main Features of Islamic Economic system
b. Comparison with other Economics System
2. Economic Activities and their place in the Islamic scheme of Life
a. Consumption
b. Production
c. Distribution
3. Islam and the Returns of Factors of Production/ Income Distribution
a. Wages
b. Rent
c. Interest
d. Profit
4. Islamic Banking and Institutions
a. Interest Free Banking
b. Mudaraba
c. Musharika
d. Participation term Certificates (PTCs)
5. Monetary and Fiscal Policies in Islam
a. Objectives
b. Money as a Medium of Exchange
c. Monetary Instruments and Different form of Money
i. Bonds
ii. Credit Cards
iii. Drafts
iv. Saving Certificates
v. Deposits; PLS, Fixed Deposits

d. Govt. Revenue and Expenditure Layouts

6. Social systems in an Islamic Society

a. Evolution

b. Main Threats and challenges under Globalization

References:
1. Naqvi, S.N.H. “ Ethics and economics in Islamic synthesis:
2. Khurshid Ahamad (Ed.) “ studies in Islamic Economics”
3. Siddidqi, N. (1972), “The Economic Enterprise in Islam”, Islamic publications Ltd.
Lahore.
4. Hussain, N.(1985), “ Islamic Life and Thought”. Ever Green press, Chamberlin Road,
Lahore, Suhail Academy Lahore.
5. “Our Dialogue” (1995), the Religious Editor, Arab News, Jeddah, Allied Promoters,
Karachi 404, Amar house M.A. Jinnah,Road, Karachi,
Hussain, M.M. (1970), “Islam Versus Socialism”:, Ashraf prewss, Lahore,, Pakistan
Khan, M. Akram, “Economic Teachings of Prophet Muhammad (PBUH). Darul Ishaat,
urdu Bazar, Karachi-1, Latest Edidtion.
Kahn, M. Mohsin, “The Translation of the meanings of Sahih-Al Bukhari” Islamic
University madina, makatabah-Al-Riaz-ul-Hadisa, Saudi Arab.

Coordinator

Economics Department ,ICP.