Beruflich Dokumente
Kultur Dokumente
NOTE: Attempt FIVE questions in all, including Question No.8 which is Compulsory. All questions
carry equal marks.
1. Explain the Law of Demand in simplest terms. Briefly describe some of its major non-price
determinants. What happens when one or more of the determinants of demand should change?
2. What is Gross Domestic Product, at factor cost, and how is it measured? What are the main elements
which differentiate it from Gross National Product, at market prices?
3. How effective can monetary policy be in bringing about economic stability? What are its shortcomings?
Why have open market operations evolved as the primary means of controlling commercial bank
reserves?
4. Explain graphically how the equilibrium output level in an economic system would be determined by
the aggregate demand-aggregate supply approach. In this context, explain the difference between planned
saving and investment and realized savings and investment, and why is this distinction significant?
5. Comment upon-the size and causes of public debt. How does domestic debt differ from foreign’ debt?
What would be the likely impact of retiring domestic debt?
6. As a world-wide experience, high import tariff has been used liberally in support of infant industry
argument ~to protect domestic industry. Discuss the practical implications of reducing import tariff to
lowest levels especially in the developing countries like Pakistan under auspices of WTO agreements.
(a) Likely impact of on-going polices of economic and trade liberalisation in terms of growth,
employment and poverty alleviation.
(b) Discuss "Regionalism and its compatibility with Globalisation of the world economies in the light of
recent developments in the world at large.
(c) Does the IMF package of structural reforms which is more or less similar for all developing countries,
benefit the recipient country more than hurts it? Discuss.
COMPULSORY QUESTION
3. Write only the correct answers in the Answer Book. Don’t reproduce the questions.
(c) Bank borrowing plus the above two at (a) and (b)
(a) Difference between receipts from exports of goods and services and the, payments for imports of
goods and services.
(b) Difference between commodity export earnings versus payment for commodity imports.
(8) Health of a country’s economy is indicated by:
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