CSS Economics Past Paper 2024

Instructions specific to this paper

• First attempt PART-I (MCQs) on separate OMR Answer Sheet which shall be taken back
• Overwriting/cutting of the options/answers will not be given credit.
• There is no negative marking. All MCQs must be attempted.
• Answers given anywhere else, other than OMR Answer Sheet, will not be considered.
• Attempt ONLY FOUR questions from PART-II. ALL questions carry EQUAL marks.

Questions

1. Q. 220 marks

   Why do economists use the ceteris paribus assumption? Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. a. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. b. Landlords install additional insulation in buildings. c. The price of solar energy falls dramatically

2. Q. 320 marks

   What is the Consumer Price Index (CPI)? How is it constructed, and how does it measure inflation? Why is it so important to so many people in Pakistan today? What are some of its weaknesses?

3. Q. 420 marks

   How does the existence of money simplify the process of buying and selling? What is the double-coincidence of wants? State and explain the concept of the money multiplier.

4. Q. 520 marks

   Which kind of monetary policy would you expect in response to high inflation: expansionary or contractionary? Why? How might each of the following factors complicate the implementation of monetary policy: long and variable lags, excess reserves, and movements in velocity?

5. Q. 620 marks

   How can an unexpected fall in exchange rates injure the financial health of a nation’s banks? What is the difference between a floating exchange rate, a soft peg, a hard peg, and dollarization?

6. Q. 720 marks

   What do you understand economic development to mean? Given the diversity of developing countries, do you think that there could ever be a single, unified theory of development? Explain your answer.

7. Q. 820 marks

   Write short notes on any two of the following: (10 each) (a) Possibilities of export promotion in developing nations (b) Demographic transition (c) Environmental Sustainability with special reference to developing countries

Standard FPSC instructions

Printed on this and every CSS paper.

• Part-II is to be attempted on the separate Answer Book.
• All the parts (if any) of each question must be attempted at one place instead of at different places.
• Write Q. No. in the Answer Book in accordance with Q. No. in the question paper.
• No page/space be left blank between the answers. All the blank pages of the Answer Book must be crossed.
• Extra attempt of any question or any part of the attempted question will not be considered.