Find the PMS Economics Paper-I 2025. Provincial Management Services (PMS) is a competitive examination conducted by PPSC. The PMS Economics Paper-I was held in May 09, 2026. Find the past paper below to understand what it is about and what type of questions were given.
PMS Economics Past Paper-I 2025
Q No. 1
- a) Define Microeconomics in terms of choices and scarcities, which leads to equilibrium. Also explain which major variables/agents lead to such outcome.
- b) Do you think opportunity cost can play central role in case of (a) above.
Q No. 2
- a) Draw a market demand and supply curve to establish market demand curve and market equilibrium. Also explain adjustment of price in this respect.
- b) Draw demand and supply curves to show equilibrium and explain disequilibrium points, as well as their directions for adjustment. Justify your answer.
Q No. 3
- a) Why Slutsky consumer is over compensated and Hicksian consumer is under compensated? Explain with the help of diagrams.
- b) Explain why two indifference curves cannot intersect.
Q No. 4
- a) Explain technical change and its implications in the long run on Production Possibility Frontier, which may be related to their returns. What makes to change such returns?
- b) Explain relevance of Economies of Scale and technical change you explained into (a) above.
Q No. 5
- a) The kinked demand curve describes price rigidity. Explain how the model works. What are its limitations?
- b) Why dose price rigidity arise in oligopolistic markets?
Q No. 6: State criteria and explain demand for factors of production. Also explain optimal factors of production employment by a firm which is price taker in both factor and product market. (value of marginal product curve may cut marginal factor cost at two points. Why one such cutting point is rejected for solution?)
Q No. 7
- a) What do you understand from equations and identities in economics? Explain with the help of economic theories & variables.
- b) Explain simultaneous equations and their application in economics.
Q No. 8 Given the equation: Y = c(Y – t) + G +I
a) Calculate Balanced Budget Multiplier.
I = Investment G= Govt. Spending t= Tax rate (Exogenous)
- b) Derive expression for dY/dG and interpret result/its’ implications; regarding the multiplier. Why its’ value is always less than other multipliers. Assume (c’) = MPC.
Q No. 9
Discuss the role of Lagrangian multiplier in optimization.
Given the following demand and total cost functions:
P = 150 – 0.5Q
C = 100 + 3Q + 7Q2
And that a subsidy of Rs.3 Per unit is paid to the firm.
- (i) Find profit maximizing price and output.
- (ii) Find profit maximizing price and output in the absence of the subsidy.
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