PUNJAB PUBLIC SERVICE COMMISSION
Combined Competitive Examination (CCE) 2024
For Recruitment to the Posts of Provincial Management Service (PMS)
SUBJECT: Commerce (Paper-1)
Time Allowed: 3 Hours
Maximum Marks: 100
NOTE:
Attempt FIVE Questions in all, selecting minimum TWO questions from each part. Calculator is allowed (not programmable).
PART-I
Q. No. 1 a) Explain Production Possibility Frontier (PPF) and clarify opportunity cost; as well as its role in production decision making.
b) Analyze points on the PPF inside as well as outside the PPF and their economic implications. Analyze whether PPF may have different shapes/slopes? (10+10=20 Marks)
Q. No. 2 a) Differentiate between Cross and Arc elasticity of demand.
b) Are there different economic implications of these elasticities? Explain with the help of examples. (10+10=20 Marks)
Q. No. 3 a) Explain Cardinal and Ordinal utility. How utility can be measured from these utilities and clarify which measures are better to make economic decision?
b) Derive demand curve based upon your explanation of (a) above. Do you think utility derived changes along demand curve? How consumer surplus is relevant in this case? (10+10=20 Marks)
Q. No. 4 a) Analyze consumer consumption curve (path) based upon budget line. What is the role of marginal rate of substitution in reaching equilibrium points?
b) Explain Engel Curve (EC) and state whether it can have different slopes. Also identify commodities consumers want to purchase along negatively sloped EC. (10+10=20 Marks)
Q. No. 5 a) Explain factors of production employment and establish expansion path. State role of economies of scale in this respect.
b) Define production function and also draw Production Possibility Curve employing two factors of production and their substitution. Discuss economic implications of such substitution. (10+10=20 Marks)
Q. No. 6 a) Explain kinked demand curve and output decision under oligopoly.
b) Explain Cournot equilibrium and how is it relevant to Nash equilibrium? You must explain and relate to economic decision making.
(10+10=20 Marks)
PART-II
Q. No. 7 Given the following equation:
$M^- / P = l(r) + k(Y) = 0$ i.e. Money supply = Money demand
Where: $M^-$ = Money supply, $P$ = Price level, $I$ = Investment, $r$ = interest rate, $Y$ = GNP (Gross Income) for LM curve. $k’ > 0$, $l’ < 0$
Solve for $dr/dy$ and
Draw as well as interpret expression for LM curve. Also discuss market equilibrium along the curve; LM. Besides, point out factors (variables) affecting Money supply and demand.
(20 Marks)
Q. No. 8 a) How does an exponential function differ from a logarithmic function for the case of one independent variable?
b) In simple IS-LM model, the goods market in an economy is given by:
$C = 15 + 0.8 Yd$
$I = 75 – 100 i$
$y = C + I + G$
$Yd = y – T$
where $T = 5 + 0.2y$ and $G = 300$
The transaction demand for money is given by $L_1 = 0.2 Y$ speculative demand for money is given by $L_2 = 750 – 260 i$ and the supply of money $M_s = 950$
Determine the IS-LM Schedules and equilibrium levels of Y and i.
(6+14=20 Marks)
Q. No. 9 a) What is the significance of derivatives in Economics?
b) A monopolist firm faced the following two distinct demand function:
$Q_1 = 24 – 0.2 P_1$
$Q_2 = 10 – 0.05 P_2$
where $Tc = 35 + 40 Q$
What price will the firm charge?
(i) With discrimination.
(ii) Without discrimination.
(6+14=20 Marks)
SUBJECT: Commerce (Paper-II)
Time Allowed: 3 Hours
Maximum Marks: 100
Q1. What are the problems of cottage & small-scale industries? Also, explain the role of SMEDA in the promotion of these industries.
Q2. Define audit risk. What are the different types of audit opinions that the auditor can give in the auditor report?
Q3. Briefly explain different kinds of companies. Also, explain the difference between a public limited company and a private limited company.
Q4. How is the management structure of a partnership company different from the management structure of a limited company? Explain.
Q5. What is the letter of credit? Discuss the uses, types, and procedures of a Letter of Credit.
Q6. Management philosophies and principles remain the same all over the world but management practices vary from region to region and organization to organization. As culture plays a very important role in management practices, discuss how does it so.
Q7. What do you know about the scientific management? Who gave the concept? What contribution does it have to management practices?
Q8. Define leadership and explain why “leadership” is much more important for managers than other skills of management.
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