Economics, Paper I

What is economic profit? Diagrammatically distinguish between profit maximization and economic profit making and discuss the difference between the limitation of the latter for a monopoly and a perfectly competitive firm?

Keynes’s general theory was less of an anti-thesis of the classical economists and more of antinodes for both the great depression and the looming threat of communism. Discuss?

The central bank of a country is the watchdog of her economy. Discuss and substantiate your answer by critically analyzing the role and performance of State Bank of Pakistan in the macro management of the country?

What is the relationship between debt burden and deficit financing? Discuss and compare two major sources of public debt and discuss their relative implications for national budget and sustainable development in a country like Pakistan?

For labor abundant countries, the comparative advantage from international trade only exists within a static model, while the real world dynamics mainly benefit the countries which happen to be both capital abundant and technologically advance. Discuss in the perspective of factors responsible for Doha round stalemate?

Do you agree that the role of US dollar as the vehicle currency is a legacy of the bretton woods system of exchange rate determination? Why the latter was introduced and what factors were responsible for its demise?