Economics CSS Paper II 2003
NOTE: Attempt FIVE questions in all, including question No. 8 which is COMPULSORY. All questions carry EQUAL marks.
1. Perpetual budget deficits indicate that governments in Pakistan have been die-hard Keynesian. That legacy still being there, discuss the rationale of endorsing the neo-classical counter-revolution, as witnessed by both privatization and the increasing role of the private sector in Pakistan’s economy.
2. “The debate on ‘growth and equity’ trade-off that ensued in the second half of the 1960s, was largely responsible for the subsequent paradigm shift. However, the economic and social indicators in the 1970s scarcely justified the latter.” Discuss.
3. Do you agree that numerous structural imbalances are seriously hampering Pakistan‘s sustainable development, and sooner they are redressed is better, even if the process involves compromising short-run growth targets?
4. Differentiate between the private and social rate of return. Do you agree that public spending on health and education for maximizing the latter? What in your opinion is the respective state of affairs in Pakistan?
5. Differentiate between foreign portfolio and foreign direct investment, and discuss the relative merits and demerits of the each type for a country like Pakistan.
6. “There are some believe that in the early 19690s, Pakistan was at the take-off stage of the Rostow’s scheme of growth. However, a close study of the latter indicates that Pakistan, in many ways, has jumped into the last stage now, without-ever having transcended even the second stage of growth.” Discuss.
7. Compare the performance of Pakistan’s agricultural pricing policy with that of the Common Agricultural Policy (CAP) and the Farm Support Program of the US of America.
COMPULSORY QUESTION
8. Write only the correct answer in the Answer Book. Do not reproduce the questions.
(1) Balance of payments deficit implies:
(a) Deficit in the current account
(b) Deficit in the Capital account
(c) Deficit in the trade balance
(d) All of these
(e) None of these
(2) Pakistan’s major trading partners are:
(a) Japan and China
(b) Islamic countries
(c) Western Europe and USA
(d) Both (a) and (b)
(e) None of these
(3) Pakistan became a member of Multifibre Arrangements (MFA) in:
(a) 1950s
(b) 1960s
(c) 1970s
(d) None of these
(4) Presently in Pakistan the largest contribution to GDP is made by the:
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) None of these
(5) The tertiary sector includes:
(a) Professional services
(b) Transport services
(c) Distributive services
(d) All of these
(e) None of these
(6) Pakistan’s custom duty rates are highest on:
(a) Intermediate goods
(b) Consumer goods
(c) Basic raw materials
(d) Chemicals and components
(e) None of these
(7) In the textiles sector of Pakistan, the largest number of firms belongs to:
(a) Integrated textile mills
(b) Independent Weaving units
(c) Power looms sector
(d) None of these
(8) The largest number of sugar mills working in Pakistan is in:
(a) Sindh
(b) Punjab
(c) NWFP
(d) None of these
(9) SMEDA is an acronym for:
(a) Southern Motorway Engineering and Development Authority
(b) Sindh Microclimate and Environmental Design Agency
(c) Salinity Management and Environmental Development Authority
(d) None of these
(10) The region receiving the smallest share of FDI inflows to developing countries is:
(a) Latin America and Caribbean
(b) Ease and South East Asia
(c) South Asia
(d) None of these
(11) The largest source of FDI in Pakistan is:
(a) Germany
(b) Canada
(c) Korea
(d) None of these
(12) In Pakistan, the largest sectoral share of FDI goes to:
(a) Power
(b) Textiles
(c) Financial business
(d) None of these
(13) In Pakistan the average annual size of the GIni-coefficient was highest in:
(a) 1960s
(b) 1970s
(c) 1980s
(d) 1990s
(e) None of these
(14) The average annual GDP growth rate in Pakistan has been lowest in:
(a) 1960s
(b) 1970s
(c) 1980s
(d) 1990s
(e) None of these
(15) After defense, the largest share of Pakistan government’s current expenditures goes to:
(a) General administration
(b) Current subsidies
(c) Socio-economic and community services
(d) None of these
(16) The largest revenue source of Pakistan’s government’s comes from:
(a) Direct taxes
(b) Custom taxes
(c) Sales taxes
(d) None of these
(17) The internal outstanding debt in Pakistan is:
(a) Greater than the GDP
(b) About a quarter of the GDP
(c) About 3 quarters of the GDP
(d) None of these
(18) Major part of foreign aid to Pakistan comes from:
(a) Consortium countries
(b) Islamic countries
(c) Non consortium countries
(d) Both (b) and (c)
(19) Pakistan’s external outstanding debt is:
(a) More than her GDP
(b) About half of her GDP
(c) A little over one third of her GDP
(d) None of these
(20) In Pakistan, Public Sector expenditures on education are:
(a) 10% of GDP
(b) 7% of GDP
(c) 5% of GDP
(d) None of these
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