CSS Economics Syllabus

Paper-I — 100 Marks

I. Micro Economics

• Consumer Behaviour

• Determination of Market Demand and Supply

• Concept of Elasticity of Demand and Supply

• Static Analysis

• Comparative Static Analysis

• Distinction between Partial and General Equilibrium Analysis (Basic Level)

• Theory of the Firm

• Producer’s Equilibrium

• Pricing of the Factors of Production

II. Macro Economics

• Basic Economic Concepts

• National Income Accounting

• Consumption Function

• Multiplier

• Accelerator

• Components of Aggregate Demand

• Labour Demand and Supply

• Unemployment

• Determination of Equilibrium Level of Income and Output, with reference to at least two or three schools of thought

• Inflation

III. Money and Banking

• Functions of Money

• Quantity Theory of Money

• Fisher Formulation

• Cambridge Formulation

• Systems of Note Issue

• Credit Creation

• Functions of Central Banks

• Instruments of Credit Control

• Distinction between:

  • Goals

  • Operational Targets

  • Intermediate Targets of Central Bank Policy

• Concept of Reserves

• Liquidity Premium

• Term Structure of Interest Rate

• Fisher Equation

• Transmission Mechanisms of Monetary Policy

• Theory of Liquidity Preference

• Time Value of Money (TVM)

• Capital Structure

• Capital Restructuring

• IS-LM Analysis

• Role of the Central Bank

• Money Demand and Supply

IV. Public Financing

• Government Expenditure

• Sources of Government Revenue

• Privatization

• Taxes and Non-Taxes

• Incidence of Different Taxes

• Public Debt

• Objectives of Public Debt

• Methods of Repayment

• Deficit Financing

• General Equilibrium Analysis

• Welfare Economics

• Fiscal Policy

V. International Trade

• Theories of Comparative Advantage

• Factor Endowments

• Trade and Growth

• Colonialism

• Imperialism and International Trade

• Trade Restrictions

• Economic Integration

• Trade Policy

• Balance of Payments

• Foreign Exchange

• International Monetary System

• Customs Unions

VI. Economic Development

• Concepts of Development

• Human Development

• Historical Growth Process and Development

• Theories of Development

• Structural Issues of Development

• Income Distribution and Poverty

• Sectoral Issues and Development:

  • Agriculture

  • Industry

  • Trade

  • Finance

• Environment and Development

Paper-II — 100 Marks

Economics of Pakistan

I. Definition and Measurement of Development

• Characteristics of Underdevelopment

• Rethinking the Concept of Development

• Growth vs. Redistributive Justice

• Absolute Poverty

• Relative Poverty

• Basic Needs Approach

• Sustainable Development

• Environmental Degradation

• Other Issues Related to Development

II. Planning Experience of Pakistan

• Critical Evaluation of the Strategy of Economic Planning

• Governance

• Institutions

III. Agricultural Development in Pakistan

• Changes in Agricultural Policies over Different Plan Periods

• Major Monetary and Fiscal Measures to Promote Agricultural Development

• Green Revolution Strategy

• Implications of the Green Revolution for:

  • Economic Growth

  • Income Redistribution

• Land Reforms and Changes in the Tenure System (1950–1980)

• Cooperative Farming

• Rural Development

IV. Industrial Development in Pakistan

• Early Industrialization Strategy

• Creation of Financial and Development Institutions

• Major Monetary and Fiscal Measures to Promote Industrial Development

• Changing Role of the Public Sector over Different Plan Periods

• Evaluation of Nationalization Policy

• Concentration of Industrial Income and Wealth

• Evaluation of Import Substitution Policy

• Export-Led Growth Strategy in Pakistan

V. Role of Foreign Trade and Aid in Economic Development

• Trends in Pakistan’s Balance of Payments

• Terms of Trade

• Changes in the Direction of Trade

• Trends in Pakistan’s Major Exports and Imports

• Causes of Significant Changes in Trade Trends

• Role of Migration and Remittances in Pakistan’s Economy

• Costs and Benefits of Foreign Aid

• Role of Foreign Investment

VI. Privatization, Denationalization and Deregulation

• Conceptual Aspects

• Operational Aspects

• International Comparisons

• Pakistan’s Experience of Privatization

VII. Interest-Free Banking in Pakistan

• Interest-Free Banking in Pakistan

VIII. Energy Policy of Pakistan

• Energy Policy of Pakistan

IX. Social Sector Development in Pakistan

• Social Sector Development in Pakistan

X. Major Issues in Pakistan’s Economy

• Energy Crisis

• Corruption

• Bad Governance

• External Debt Accumulation and Dependency

• Unemployment

• Income Inequality

• Inflation

• Fiscal Deficits

• Trade Deficits

• Balance of Payments Issues

• Shortage of Irrigation Water

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