COURSES OF STUDIES (SYLLABUS)1
M.A. (Previous) & M.A. (Final) Examinations in
For External Candidates
M.A. Economics (Previous)
Advanced Economic Statistics
Economics of Planning
Economics of Agriculture
National Income Analysis & Accounting
Comparative Economics Systems
Economics of Islam
M.A. Economics (Final)
History of Economic Thought
Economics of Labour
The previous examinations consist of five papers. Papers I to IV are compulsory and one optional from Paper V.
The final examinations consist of five papers. Paper I to III and V are compulsory and one optional from Paper IV.
Each paper shall be of 100 marks and of 3 hours' duration.
M.A. ECONOMICS (PREVIOUS)
1. Utility and preferences
A survey of the contribution of Utilitarian Economists. Marshall’s theory of utility. Pareto and indifference curves. The ordinal character of utility – Need for a theory consistently based upon ordinal concept of utility. Marginal rate of substitution. Diminishing marginal rate of substitution
Preference in a two-commodity world. Choice in a two-commodity world. Changes in the data (budget changes ) (price changes ). Three or more commodities. One commodity and money. The validity of this theory. Demand curves and various elasticities.
2. General equilibrium of exchange
Rational economics and equilibrium. Quesnay's Tableau Economique. The Classics: Marshall and J.B. Clark. Functional equilibrium, genetic, causal equilibrium. Pareto’s system as basis of study.
Problems of general equilibrium. Conditions of stability of general equilibrium. Character of Hicksian conditions of stability. Equilibrium and disequilibrium.
A survey of the contributions of economists towards value theory – Classical, neo-classical, up-to-date background of value theories. Place of prices in a modern economy.
4. Market structures and equilibrium
Equilibrium of the firm and industry under perfect competition. Monopolistic competition. Monopoly and all its aspects. Oligopoly with its problems and solutions.
5. Introduction to game theory
An introduction to game theory
6. The theory of factor prices
Marginal productivity theory. Wages: theories & problems. Interest: theories & problems. Profit: theories. Rent: theories.
Government Activities and Expenditure
Role of government in an economy
Basic economic decisions. The market economic and the attainment of economic goals. The consideration which have led to the understanding of government activity.
Optimum levels of government activities
Application of the marginal rule. Use of price system by government. Measure of community benefits. Estimation and measurement of costs and benefits. Use of optimum techniques.
Patterns and trends (with special reference to Pakistan). Major purposes in government expenditures. Causes of real increases in government expenditures. Effects and policies of government expenditures.
Financing of government expenditures
Sources of government revenues:
Sale of goods and services. Taxation, borrowing. Developments and nature of principal taxation.
Taxation of income:
Income tax deductions and exemption. Income tax rate structure and tax administration – the time period problem – economic consequences of income shifting and incidence – sales taxation.
Government Borrowing and Fiscal Policy:
Economics of government borrowing. Introduction to fiscal policy and analysis. Anti-inflationary fiscal policy. Fiscal policy and unemployment, debit management in periods of inflation.
Budget and Modern Government
Development of modern budgeting. Budget classification. Specialised budget problems. Three objective of budget policy – the allocation branch – the distribution branch and the stabilisation branch.
ADVANCED ECONOMIC STATISTICS
Historical development of statistics. The scope of economic statistics, misuse of statistics, collection, classification tabulation and interpretation of data. Census of population and agriculture, methods f measuring national income
Importance of diagrams and graph bars, sub-divided rectangles, circles, graphs of time series and frequency distributions, histograms, frequency polygon and curve, cumulative, frequency curve, percentage frequency curve, Lorenz curve, Pareto's law of income distribution
Measures and dispersion, co-efficient of variation, relative importance of different averages.
Idea of normal curve and its importance properties.
Measures of the shape of distribution: First four moments, Sheppard's correction, skewness, and symmetry, calculation of coefficient of skewness, kurtosis.
Coefficient of correlation: Calculation of the coefficients of correlation of grouped and ungrouped data. Rank correlation and idea of non-linear regression.
Index numbers, weighted index number, Fisher's ideal formula tests of index numbers. Cost of living numbers.
Analysis of time series, methods for measuring short time oscillation
Regression: Method of least squares. Fitting a straight line and a parabolic curve of the type y = a + bx & y = ab – x + cx2. Theory of sampling, random, stratified, multi-stage and purposive sampling.
Sampling distribution, standard error and probable error. Sample illustration theory of probability.
Interpolation by the use of lag range and Newton's formula. Use of logarithms and practice on Newton's formulae.
ECONOMICS OF PLANNING
Principles of Planning:
Theories of economic development and their application.
Definition and techniques of planning
instruments of planning and role of various policy variables.
Evaluation of planning for the acceleration of development process.
Development experience in Western European countries
Development experience in socialist countries
Development experience in under developed countries
Patterns of development planning
Indicative planning, socialist planning and comprehensive planning in a mixed economy
Annual planning, five-year planning and perspective planning.
Preparation of development plan in an underdeveloped economy
Assessment of country's resources
Minimum of country's resources
Need for foreign assistance
Plan strategy and target consistency
Sectoral allocations and interdependence
Implementation of a development plan
Guidelines and government policies with special reference to fiscal, monetary and foreign trade policies
(i) Financing of the public sector development project via:
(b) Inflation, and
(c) Foreign aid
(ii) Public sector expenditure on:
(b) Social service, and
(c) Commodity production
Evaluation of planning experience with special reference to:
Targets vs. achievements
Agriculture vs. industry
Public vs. private sector
Balanced vs. unbalanced growth
Growth vs. distribution
Planning in Pakistan
Evaluation of planning process in Pakistan
Objectives and techniques of planning. Use of models in programming.
National resources and targets for national plans
Price structure: choice of policy instructions
The role of public and private sector
Estimation of capital requirements
Sources of capital formation
Public and private sector, foreign capital inflow
Method of allocation of investment resources
Obstacles arising for investment choices sectoral constency
Strategies of growth, balance of payment and foreign aid
Manpower resources and its utilisation
NATIONAL INCOME ANALYSIS AND ACCOUNTING
Macro vs. micro economics. Static vs. dynamic concepts. Micro-economic equilibrium. Analysis and techniques
National income concepts
Real and money income
Circular flow of income, its components
Ways of calculating national income
Gross and net product
Conceptual problems in the estimation of national income
Products to be included
Final and intermediate products
Valuation of the production
Accounting framework and national income aggregate
Income and production statement of the firm
Sector account: National income aggregate as:
GNP and GNI
NNP at market price
GNP and income
NNI at factor cost and National Income
Personal income and outlay
Their definitions and uses for comparative analysis
Criticism of national income accounting
Other system of economic accounting
Input-output techniques, analytical consideration and form of input-output accounting table, uses of analysis based on input-output relationship.
Flow of fund accounting, rational of accounting procedure, system of sector account & uses.
Use of national income analysis for changes in:
National Accounting System of Pakistan
Methods of national income estimates in Pakistan.
Identification of problems and suggested solution
Component of National Aggregate:
Simple income determinations multiplier
Factor affecting consumption expenditure
Federal policy and income consumption expenditure
Government expenditure, taxation, the equilibrium level of income.
Level of investment
Discounting and the present value of an asset. The inducement to invest.
Factors affecting investment in spending
Money and interest
Interest and investment
Level of employment
Factor's market and classical doctrine
Keynesian economics and the level of employment
Money wages rates employment. Full employment
M.A. ECONOMICS (FINAL)
Development of macro-economics. Micro economics vs. Macro economics
The classical macro economics
Say's law and quantity theory – Wages, prices. Employment and production. Savings, investment and the role of interest. Wicksell's formulation and monetary and fiscal policy.
The Keynesian macro economics
Obstacles of full employment. Liquidity preference significance. The liquidity trap. Monetary management and the role of interest. The consumption function. Short run consumption behaviour, other influences on consumption spending. Keynesian model and its application. Comparison of Keynesian and Classical models.
Income, output and employment – systems and effects of changes in price level.
Acceleration and multiplier
Working of acceleration, its efficiency effects and coefficient. Static and dynamic multi sector multiplier, employment and foreign trade multipliers.
Growth and fluctuation
Growth, investment and employment. Stagnation or exhilaration. Cyclical fluctuations.
Changes in monetary and fiscal policies, effect on investment limitation and alternative policies. Static and dynamic multi sector multiplier, employment and foreign trade multiplier.
Evolution of international trade theory: from Ricardo to Haberler. Measurement of cost to assess gain from trade.
Pure theory international trade
Supply: The derivation of the transformation curve from the production function. Factor-price equalisation.
Demand: The offer-curves and their derivation from trade indifference curves. Consumption pattern and trade. Foreign trade multiplier.
Terms of trade: Various concepts, their role in measuring gain from trade. Factors affecting terms of trade of advances and developing countries.
Trade and welfare: Trade as instrument of welfare under multilateralism and various restrictive variants.
Trade and economic growth: Trade and growth. Different implication of these inter-relationships for specialised economics. Diversification of the economy for increased growth.
Balance of payments (Changes and their adjustment)
The balance of payments statement. Elements in the adjustment process. Elasticities and propensities of trade. The working of price and income effects in the payment mechanism. Interrelation between monetary and fiscal policies and prices income changes. Discriminatory trade and payment restrictions and balance of payments adjustment. Concept of balance of payments in the short and long terms. Variation in payments. Disequilibria in industrialised and developing economies. Gold standard and the payment mechanism.
International investment and foreign aid
Foreign exchange: Market short terms and long terms. Capital movements. The transfer process.
Foreign aid: Change in the concept. Terms and volume of aid. Problems of donor and recipient countries. Absorption capacity and flow of funds.
Trade restrictions and the structure of world trade since the end of the World War I. Tariffs, quotas, commodity agreements, state tradings, exchange control. These restrictions should be studied from the point of view of their impact on the direction, composition and volume of world trade and its effects on the economic growth and welfare of various regions.
International monetary problems and institutions
Evolution of payment system in Western Europe since the World War II. Payment problems of developing countries. Dollar shortage, its changing character, causes and cure. The position of dollar as reserve currency, its significance for industrialised and under developed countries. Sterling area: its changing role in the postwar period. IMF, World Bank, GATT and other international economic institutions.
Regional economic integration
Customs union issue from Jacob Viner's own words. Attitude of GATT. Regional cooperation in Western Europe. Rational integration and economic development. Regional arrangement in developing areas, with special reference to RCD.
Supply of money
Definition of money
Process of the creation of money
Institutional determinants of supply of money, government, commercial bank, non-banking financial intermediaries (NBFIs) and central bank.
Demand of money
Purchasing power of money
The quantity theory of money
The fundamental equations
The conditions for stability
The theories of inflation and deflation
Integration of real sector with monetary variables:
Theory of interest – classical, neo-classical, Keynesian, recent contributions
Theory of wages – classical, neo-classical, Keynesian, recent contributions
Theory of prices – classical, neo-classical, Keynesian, recent contributions
Objectives of monetary policy:
Fostering of rapid growth in the economy
Generation of employment
Maintenance of balance in international payments.
The mechanism and instruments of monetary management:
Mechanism of monetary management
Interest rate mechanism
Tools of monetary management
Open market operations
Selective credit controls
External value of money
Purchasing power parity theory
Balance of payments theory
Manipulation of exchange rules
International Monetary Fund (IMF)
International Bank of Reconstruction and Development (IBRD)
International Development Association
International Finance Corporation
Need for an international currency
Monetary management in Pakistan
HISTORY OF ECONOMIC THOUGHTS
A history of the following main schools of thought and main lines of development since about 1700 till about 1960. mercantilism. Classical physiocrats. Historical socialist and marginal utility schools. Marshallian economics. Growth of welfare economics. Stockholm school and monetary theory. Neoclassical school and theory of imperfect competition and consumer behaviour. Growth in the theories of business cycles and international trade. Monetary theory up to 1936. the new economics and J.M. Keynes.
Introduction to the theory of econometrics. An outline of procedure and main discoveries.
Elements of matrix algebra, matrices, determinants, vectors and vector differentiations, characteristic roots and vectors.
Errors in Variables
The two-variable linear case
The classical approach
Grouping of observations
Use of instrumental variables
The two-variable case
Consequences of auto-correlated disturbances
Generalised least squares
Lagged variables, dummy variables.
Simultaneous equation problems
Simultaneous equation system
Limited information sign equation (LISE)
Lease variance ratio (LVR)
Two stage least squares
Tests of identifying restrictions
Full informations maximum likelihood (FIML)
Three-stage least squares.
Technical economic relations
Micro-economic cost curves
The description of complete systems
The movements of complete systems
The purpose and logic of economic policy.
Unified concept of management
Planning, organisation, coordination, motivation, control
The organisational hierarchy
The board of directors, the chief executive, the supervisor
Basic departmentation, the assignment of activities
Staff and line relationship
Centralisation and decentralisation
Problems of management
Opportunities for multiple products. Policy on adding new products. Policy on dropping old products.
Pricing lasting products. Pricing perishable products. Pricing standard when competitors are few. Cost plus pricing. Cyclical pricing. Product line pricing.
The economics of advertising. Methods of determining total advertising budget. Cyclical fluctuations of advertising. Measuring economic effects of advertising.
Introduction to operational research and managements
Linear programming. Queueing theory, critical path scheduling and PERT analysis. Theory of games. Dynamic programming and replacement. Policy ranking techniques simulations.
Problems of management in underdeveloped countries
Public investment. Private investment.
Business structure and management methods in Pakistan
The paper shall comprise all the subject taught as compulsory and optional papers at the M.A. Economics examinations in the University of Karachi.
1Please refer to the original 'Courses of Studies' (Syllabus) issued by University of Karachi for the books prescribed and for the syllabus of other optional subjects, which are not listed here