Punjab Public Service Commission (PPSC)

Types of markets and price determination : perfect competition, monopoly, monopolistic competition. Oligopoly - Cournot and Bertrand models, kinked demand curve model. Micro theories of distribution - marginal productivity theory and modern theory.

Concept of welfare econmics, main features of old and new welfare economics, Pareto optimality condition in production, consumption and exchange. Efficiency of perfect competition and inefficiency of imperfect competition.

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National Income : concept and measurement, Classical and Keynesian theories of income and employment. Psychological law of consumption. Investment and its determinants, saving and its determinants, static and dynamic multiplier. Meaning, sources and causes of inflation, types of inflation, measures to control inflation. Main features of monetary and fiscal policies and their role as stabilizing policies.

Difference between growth and development, various method to measure growth and development. Theories of growth: Classical theory, Harrod Domar model, Lewis growth. Sources of growth. Balanced vs. unbalanced growth. Planning versus market.

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Concept of public finance : Effects of public expenditure on production and distribution. Classification and canons of taxation, characteristics of a good tax system. Debt management and deficit financing, objectives and limitations. Value added tax - concept and relevance.

Meaning and functions of money, Quantity theory of money, Cambridge theory of money and prices. Functions of central and commercial banks.

Classical, Neo-classical and Heckscher - Ohlin trade theories. Balance of payments - meaning and components, alternative measures to correct dis-equilibrium in the balance of payments. Exchange rate determination under fixed and flexible exchange rate regimes. Evolution of international monetary system. Bretton Woods system and its collapse. The role of IMF and World Bank in developing countries.

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Indian Economy : national and per-capita income, aggregate and sectoral composition of national income and change therein. Causes, trends and measures to control poverty, unemployment and inequality in India. Rationale of economics reforms in India. Impact of economic reforms on unemployment, poverty and inequality. Arguments for and against Public and private sectors. Implications of WTO for various sectors of Indian economy. Post-1991 industrial and export-import policy.

Punjab Economy : strengths and weaknesses of Punjab economy; main problems and challenges to Punjab economy. Sectoral composition of state domestic product and workforce and changes therein since 1970. Comparison of economic development of Punjab with other major Indian States. Critical appraisal of green revolution. Issue of diversification of Punjab agriculture. Implications of WTO for Punjab agriculture. Problem of resource mobilization and fiscal crisis in Punjab.

1. The Paper-setter is required to set eight questions in all, two questions from each section.
2. The candidates are required to answer five question in all, selecting at least one question from each section. Each question carries equal marks.