Prep Right
Questions › PMS Punjab › Economics › 2023
PPSC · PMS Punjab 2023

Economics, Paper I

100 marks · 3 hours · 9 questions
This paper Economics · all yearsQ. 1 · Explain Production Possibility Frontier (PPF)…Q. 2 · Differentiate between Cross and Arc…Q. 3 · Explain Cardinal and Ordinal utility.…Q. 4 · Analyze consumer consumption curve (path)…Q. 5 · Explain factors of production employment…Q. 6 · Explain kinked demand curve and…Q. 7 · Given the following equation: M¯/P…Q. 8 · How does an exponential function…Q. 9 · What is the significance of…With this paper← 20222023 →
3 hours · questions hide until you reveal them

Not yet checked 1 of 9 questions have not yet been compared with the official paper.

Part I

Q. 1
  1. (a)Explain Production Possibility Frontier (PPF) and clarify opportunity cost; as well as its role in production decision making. [10]
  2. (b)Analyze points on the PPF inside as well as outside the PPF and their economic implications. Analyze whether PPF may have different shapes/slopes? [10]
(20)
Q. 2
  1. (a)Differentiate between Cross and Arc elasticity of demand. [10]
  2. (b)Are there different economic implications of these elasticities? Explain with the help of examples. [10]
(20)
Q. 3
  1. (a)Explain Cardinal and Ordinal utility. How utility can be measured from these utilities and clarify which measures are better to make economic decision? [10]
  2. (b)Derive demand curve based upon your explanation of (a) above. Do you think utility derived changes along demand curve? How consumer surplus is relevant in this case? [10]
(20)
Q. 4
  1. (a)Analyze consumer consumption curve (path) based upon budget line. What is the role of marginal rate of substitution in reaching equilibrium points? [10]
  2. (b)Explain Engel Curve (EC) and state whether it can have different slopes. Also identify commodities consumers want to purchase along negatively sloped EC. [10]
(20)
Q. 5
  1. (a)Explain factors of production employment and establish expansion path. State role of economies of scale in this respect. [10]
  2. (b)Define production function and also draw Production Possibility Curve employing two factors of production and their substitution. Discuss economic implications of such substitution. [10]
(20)
Q. 6
  1. (a)Explain kinked demand curve and output decision under oligopoly. [10]
  2. (b)Explain Cournet equilibrium and how is it relevant to Nash equilibrium? You must explain and relate to economic decision making. [10]
(20)

Part II

Q. 7

Given the following equation: M¯/P = I (r) + k (Y) = 0 i.e Money supply = Money demand Where: M = Money supply P= Price level I= Investment r = interest rate Y = GNP (Gross Income) for LM curve. k` > 0, ′< 0 Solve for dr/ dy and Draw as well as interpret expression for LM curve. Also discuss market equilibrium along the curve; LM. Besides, point out factors (variables) affecting Money supply and demand.

(20)
Q. 8
  1. (a)How does an exponential function differ from a logarithmic function for the case of one independent variable? [6]
  2. (b)In simple IS-LM model, the goods market in an economy is given by : C=15+0.8 Yd. I=75-100 i Y = c +I+G Yd = Y - T were T = 5 +0.2y and G = 300 The transaction demand for money is given by L1 = 0.2 Y speculative demand for money in given by L2=750-260 i and the supply of money Ms=950 Determine the IS - LM Schedules and equilibrium levels of Y and i [14]
(20)
Q. 9
  1. (a)What is the significance of derivatives in Economics? [6]
  2. (b)A monopolist firm faced the following two distinct demand function. Q 1 = 24 - 0.2 P 1 , Q 2 = 10 - 0.05 P 2 where T c = 35 + 40 Q What price will the firm charge? (i) With discrimination. (ii) Without discrimination. [14]
Not yet checked
(20)

Related papers

Economics 2016Economics 2017Economics 2017Economics 2019Economics 2020Economics 2020Economics 2021Economics 2021Economics 2022Economics 2022Economics 2023Business Administration 2023Chemistry 2023Commerce 2023Commerce 2023Economics 2023Education 2023Education 2023English Literature 2023English Literature 2023English Precis & Composition 2023Geology 2023Geology 2023History 2023Islamic Studies 2023Journalism & Mass Communication 2023Law 2023Mathematics 2023Mathematics 2023Pakistan Studies 2023Political Science 2023Political Science 2023Persian 2023Principles of Engineering 2023Principles of Engineering 2023Punjabi 2023Sociology 2023Sociology 2023Statistics 2023Statistics 2023Veterinary Science 2023Veterinary Science 2023Zoology 2023Zoology 2023Psychology 2023Psychology 2023Public Administration 2023Public Administration 2023Punjabi 2023Social Work 2023Social Work 2023Urdu 2023

About this paper

The 2023 PMS Punjab Economics paper set by the PPSC. Question wording only; questions marked “Not yet checked” have not been compared with the official paper yet.

Disclaimer Prep Right is independent and not affiliated with PPSC.