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MA-economics Karachi University syllabus



University Of Karachi
M.A. (Previous) and M.A. (Final) Examination

M.A. (Previous)

1. The examination for degree of Master s of Arts shall be taken in two parts; (1)
Previous examination and (2) (Final) Examination, each for One year’s
dur ation. Students passing the B.A. Honors ( Thr ee years course) Examination
will be eligible to take the M.A. Final Examination after on year’s study
without being required to pass the M.A. Previous Examination.
2. The Previous Examination shall consist of five papers, paper I_IV ar e
compulsory and one optional from paper V. Each paper shall be of 100 marks
and of 3 hour’s duration.

M.A Final

3. The M.A. Final Examination shall comprise five papers, paper I, II, 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. P revious)


Micro Economics

1.Utility and preference:
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
the Data (Budget changes) (Price changes). Thr ee or more commodities. One
commodity and money. The Validity of this theory-Demand curves and various
2. The General Equilibrium of Exchange:
Rational Economics and Equilibrium. Quesnay’s Tableau Economique. The
Marshall & J.B Clark-Functional Equilibrium- Genetic-Casual Equilibrium Pareto’s
system as basic of study.
Problems of general equilibr ium. Conditions of Stability of General Equilibrium.
Characters of hicks and condition of stability. Equilibrium and disequilibrium
3. Value
A Survey of the contributions of economists towards value theory-classical, Neo
classical, Up- to-date back ground of value theories. the place of prices in a
4. Market structur es and Equilibrium.
Equilibrium of the firm and industry under perfect competition. Monopolistic
competition- monopoly in all its all its aspects-oligopoly with its problems and
5. Introduction to games theor y :
An introductions to games theory.
6. The theory of factor prices-Marginal productivity theory. Wages -theoris
problems. Interest theories problems profit-theories. Rent theories.
7. Welfare Economics.
Books Prescribed
1. J.R. hicks Value and Capital
2. J. Robinson Economics of Imperfect
3. E. H Chamberlin. Monopolistic Competition.
4. W. Fellner. Modern Economics analysis
5. Erol’o Fossati The theory of General static
6. W. Baumol Economics Theory and
7. R. Dorfman. The PriceSystem
8. W. J. L. Ryan Price System.
9. K. E. Boulding Economics Analysis.
10. reading in the Theory American Economics
11. Reading In The Theory of American Economic
Distribution Association
12. Eric Roll A History of Economics
13. E. Sehneider Pricing and Equilibrium



Government Activities and Expenditure :
1. Role Of Government In An Economy.
The Basic Economy Decisions. The Mar ket Economic and the Attainment of
Economic goals. The Consideration Which have led to the undertaking of
Government Activity.
2. Optimum Levels of Government Activities .
Application of the marginal Rule . Use of Price System by Government
Measurement of community benefits. Estimation and measurement of Costs and
Benefits. Use of Optimum Techniques.
3. Government Expenditure.
Patterns and tends (With special reference to Pakistan).
Major Purpose in Government Expenditures causes of Real increases in
Government Expenditures. Effects and Policies of Government Expenditures.
4. Financing of Government Expenditures.
Sources of Gover nment Revenues :
Sale of Goods and Services :Taxation ,Borrowing. The Developments and
Natur e of Principal Taxation.
Taxation of Income :
Income Tax Deduction and Exemption Income Tax Rate Structur e and Tax
Administration –The time Per iod Problem –Economic Consequences of Income
Shifting and Incidence—Sales Taxation
Government Borrowing and Fiscal Policy :
1. The Economics of Government Borrowing .Introduction to Fiscal Policy and
analysis. Anti-Inflationary Fiscal Policy. Fiscal Policy and Unemployment, debit
management in periods of Inflation.
The Budget and Modern Government :
1. Development of Modern Budgeting. Budget classification. Specialized Budget
Problems. Thr ee objective of budget Policy—The Allocation Branch—The
distribution Branch and the Stabilization Branch.
Boxes Prescribed
For Part 1. (i) John F. Due. Government Finance. Richard
Irwin Inc., Relevant chapters.
(ii) A. R. Prest Public Finance, Weidenfeld and Ncolsion,
Loudon,1963(Part III Relevant Portions) :
For Part II John F. Due. Government Finance, Richard Irwin Ince,
Relevant Chapters.
For Part III. (i) Burkhead. Government of Budgeting Creasing and hall Ltd,
London,1956,Chapter 124 Relevant Portion.
(ii) Richard A. Musgrave. The Theory of Public
Finance, McGraw Hill Book Company Inc,
London. 1959,Chapt. I only.


Advanced Economic Statistics

1. 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 of measuring national
2. Importance of diagrams and graphs bar, 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.
3. Measures and dispersion, co-efficient of variation, relative importance of
different averages.
4. Idea of normal curve and its impor tance properties.
5. First four moments, Sheppar d’s correction, skewnes and symmetry,
calculation of
co-efficients of skeweess, Kurtosis.
6. Calculation of the co-efficients of correlation of grouped and ungrouped data.
Rank co-relation and idea of non-linear regression.
7. Index, numbers, weighted index numbers, Cost of living numbers.
8. Analysis of time series, methods for measuring short time oscillation, method
least square.
9. Fiting a str aight time and a parabolic curve of the type
y = a + bx $ y =ab --- x + cx theory pf sampling, r andom, stratified, 2 multistage
and purposive sampling.
10. sampling distribution. Standard error and probable error . Simple illustration
theory of probability.
11. Interpolation by the use of Lyngranges and Newton’s formula. Use of
and prices on Newton’s formula.
Books Prescribed
1. G. U. Yule and An Introduction to
M. G. kendail statistics.
2. K. D. Practical Problems in
Elbance statistics.
3. H. H. Arkin and An outline of statistical
R.R. colton Method
4. A. R. Hersic Statistics
5. J. Mounsay Introduction to statistical
6. Crowden and Applied General statistics


Economic of Planning

Part 1
1. Principles of Planning :
(a) Theories of Economic development and their application.
(b) Definition and techniques of planning.
(c) Instruments of planning and role of various policy variables.
2. Evolution of planning for the acceleration of development process.
(a) Development experiences in west Eur opean Countries.
(b) Development experience in socialist countries.
(c) Development experience in under developed countries.
3. Patterns of developments planning:
(a) Indicative planning socialist planning and comprehensive planning
In a mixed economy.
(b) Annual planning, five years planning and perspective planning.
4. Preparation of development plan in an underdeveloped economy:
(a) Assement of country’s resources.
(b) Minimum of country’s resources.
(c) Need for foreign assistance.
(d) Plan strategy and target consistency.
(e) Sectoral allocations and interdependence.
(f) Input-Output exercise.
5. Implementation of a Development plan.
(a) Private sector : guide- lines government policies with special reference to
Monetary and foreign trade policies.
(b) public- sector : (i) Finance of the public sector development project via : (a)
taxation (b) inflation and ( c) foreign aid.
(c) Public-sector expenditure on (a) infr astructure (b) social service and (c)
commodity production.
6. Evolution of planning experience :
With special reference to :
(a) Targets vs. achievements.
(b) Agriculture vs. industry.
(c) Public vs. private sector.
(d) Balance vs. unbalance growth.
(e) Growth vs. distribution.
Evolution 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 requir ements.
Sources of Capital formation.
Public & private sector, foreign capital inflow.
Method of Allocation of investment Resour ce.
Obstacles arising for investment choices sect oral constancy.
Strategies of gr owth, Balance of payment and foreign Aid.
Manpower recour ses and its utilization.
Regional Balance.
This study will be mad in the light of the development plans of the country ,
with reference to current plans.
Books Prescribed
1. Leading Issues in economic development by G. M. Meir.
2. Development Planning by W. A.Lewis.
3. Analytical Techniques of Economic development. A cases study
Of Pakistan by W. Times.
4. Strategy of Economic planning by Mahbub-ul-haque.
5. Planning Economic Development (Homewood,III,1960) by Hagen,E. E.(ED)
6. Planning for Economic Development by U. N. O.
7. Development Planning : Lessons from E xperience by Waterstone, A.
8. Economic Planning in under-developed Areas by Mason,E. S.
10. Economic Planning in Pakistan by waterstone,A.
11. The First Five-year Plan of Pakistan.
The Second Five year in Pakistan.
Preliminary Evolution of Pr ogress during the second five.
Year plan. The Third Five year 4 th
plan, 5 th plan and 6 th plan.
12. Pakistan, Development Review.
Pakistan Institute of Development Economic.


Economics of agriculture

A Introduction to Economic of Agriculture :Definition concepts, tool and
B Demand and supply functions in agriculture.
Focal points and conditions of long—term shift in the demand cur ve, peculiaries
of demand-supply function in agriculture, farm price behavior.
Problems of price determination with reference to income effect, cobweb theorem
and relevant income elasticities.
(i) Input-output Relationship :
Choice and resource allocation criteria:
Resource—substitution and factor relationship:
Resource-combination and cost minimization:
Resource allocation and enterprise combination, chaise between pr oduct and
(ii) Resource Classification and other problems in aggregation :
Natur e and types of cost curves:
Retur ns to scale and farm size;
Factors determining optimum size of farm;
Time-factor reward and resource valuation;
Economic planning and farm-size;
Agriculture and trade-prices;
The role of the state in regulation prices in developed and under developed
C. Problems of agricultural credit;
Credit and Agricultural development;
Form of credit;
Role of interest in agricultural credit vs. rate of interest in industrial credit:
Form-credit supply ;
Allocation and use of farm- credit ;
Credit institutions and marketing operations.
D. Economic Development and Agricultur e;
Agriculture in a developing economy; measurement and evaluation with
(i) Population increase relating to income
(ii) Use of techniques employed by consuming units and
(iii) Rise in output effecting trade, and development
E. Land Organization income distribution and economic development.
Detailed study of Agricultural sector with reference to its 2 & 3 Five year nd rd
Plans, Land Unitization, Land man ratio, size of holding, income and standard
of living.
B. (i) LAND : Size of holdings, Farm mechanization, water-logging salinity,
quality and quality of inputs.
(ii) LABOUR : Rate of population growth and land ratio study of agricultural
labour force and its employment; possibility of its transfer to non-agricultural
sector, problems of agricultural wages.
(iii) CAPITAL: Availability and requirements of capital credit institutions
and their performance .The role of National and international agricultural
Credit institutions.
(iv) ORGANISATION : farm until and its layout, problem of sub division and
Fr agmentation of holding, their consolidation scheme, Techniques of
cultivation, irrigation system, marketing operation, suggestion for
improvement, impact; stable, unstable prices on the growers; A study in
respective and prospect. Effect of Land Reforms and Tenancy Acts.
(v) Descript ion of Major food and cash crops like food grains, Jule, Cotton,
Tobacco, and the evaluation of policies related to their management and
(vi) Livestock and animal husbandry: A review of existing situation and
projection for future. The role of agro industries diversification, strengthening
and expansion of agricultural sector through establishment agro-industries.
(vii) Effect of agricultur al production in the international Trade and Balance
of payment of Pakistan. Foreign Aid and agricultural development, food
Books Prescribed
(i) Economic of Production and Resource Use.
Earl O. Heady.
(ii) Contemporary Reading in Agricultural Economics.
Hal crow Prentice Hall Inc, New York 1955.
(iii) Outline of Agricultural Economics.
Henry C. Taylor (Macmillan Company)
(iv) The Economics of Agriculture Development J. W. Mellor
(v) Pakistan:- A Developing Economy.
S. M. Akhtar (Latest)
(vi) Demand and supply for Agrienitural Product in Pakistan
S. A. Abbas, Oxford University Pr ess.
(vii) Chapter of 1 st IIn d IIIrd Five year Plane relating to Agricultural sector.
(viii) Economy of Pakistan.
Andrew and Muhammad, Oxfor d University press. London 1958.
Books Recommended
(i) The Economic of Agriculture.
R. L. Choed, London, 1959
(ii) Agricultural Marketing.
Fr edrick Lundy Thompson, McGraw Hill Book Company,Inc.1951.
(iii) Introduction of Agricultural Economics.
Bishop and Toussaint.
(iv) Farm Management Economics.
(v) Agricultural Economics.
Benjamin Horace Hibbard, London 1956.
Government of Pakistan Publication.
(vi) (a) Report to the Government of Pakistan on Labour conditions
In Agriculture.
(b) Food and agricultural commission Repor t 1960.
(c) Report of the Land Reforms commission.
(d) Report of the Credit Enquiry Committee.
(vii) Agriculture and Economic Development.
Carl Ficher and Luwrence Witt.
Mcgraw Hill book Company New York.
(viii) Proceedings of 11 International Conference of th agricultural Economic.
Oxford University Press, London.
(ix) CENTO Confer ence on Agricultural Extension, CENTO 1967.
(x) Developing Rural India Plane and Practice by John W. Mellor &
(xi) Pakistan Development Review, Institute of Development Economics.



(i) Introduction :
Macro v/s Micro Economics, state Dynamic Concepts
Micro Economic Equilibrium Analysis and techniques.
(ii) National Income Concepts.
Real and Money income.
Circular flow of income, its component. Ways of calculating national
Gross and Net Product.
(iii) Conceptual Problem in the Estimation of National Income :
(a) Product to be included.
(b) Final and Intermediate Product.
(c) Valuation of the Production.
(iii) Accounting Frame work and national Income Aggregate.
(a) Income and production statement for firm.
(b) Sector account :National Income Aggregate as.
(1) G. N. P. and G.N.I.
(2) N.N.P at Mar ket Price.
(3) G.N.P and Income
(4) N.N.I. as factor cost-and national Income.
(5) Personal Income and outlay.
(6) Disposable Income.
(c) Their definitions and uses for comparative Analysis.
(1) Str uctural (2) Comparative Analysis.
(3) Over Space.
(d) Critiesm of national Income Accounting.
(v) Other System of Economic Accounting :
(a) Input-output Techniques, Analytical consideration.
And form of input- output accounting table, uses of analysis based on
input-output relationship.
(b) Flow of Fund Accounting.
Rationale of Accounting Procedure, System of Sector Account and uses
(c) Use of National Income analysis for changes is
(1) Population (2) Producti on (3) Productivity
(4) Prices (5) Employment.
Part II
vi ) National Accounting System of Pakistan:
Methods of National Income esti mates i n Paki stan.
Identification of Problems and suggested salution.
Part III
VII) Component of National Aggregate:
Simple Income Determinations Multiplier.
Factor Affecting Consumpti on Expenditure.
(b) Federal Policy and Income Consumption Expenditure.
Government expenditure. Taxation the Equilibrium Level of Income.
(c) Level of Investment.
Discounting and the present value of an asset. The inducement to invest.
Factors Affecting investment in spending.
(d) Money and Interest.
Interest and Investment.
General Equilibrium.
(e) Level of Employment.
(i) Factor’s market and classical Doctrine.
(ii) Keynesian Economics and the level of Employment.
(iii) Money Wages rates-employment. Full Employment.
Part I & II
1) R. Ruggle & M.D. Ruggles National Income Accounts and
Income Analysis
2) J.P.P welson National Income & Flow of Fund
3) A.J. Vandermenien & National Income Analysis &
D.C Vandermenien Sector Accounting.
4) W. H. Mier. Yk Input & output Analysis.
5) Sam Rosen National Income
6) R. M. Biggs National Income and Force Casting.
7) Parker & Harcurt Reading in the concept and .
measurement of national income.
8) S. C. Shoup Principal of National Income
9) Report of Pakistan 1965 National Income Commission.
Part II
10) J. S. Hender son National Income
11) C. L. Schultz National Income Analysis.
12) T. F Dernberg & Macro Economics
M. McDougal
13) E. Shapiro Macro Economics
14) G. Ackley Macro Economics
15) M. J. Balley National Income and Price Level.
16) K. E. Boulding Economic Analysis Part II
Macro Economics.


Mathematical Economics

1) Function and Diagrams in Economics Theory:
Introduction, Demand function and Curves, Particular Demand Function
and Curves. Total revenue functions and curves Cost function and curves.
Other functions and Curves in Economic Theory. Indifference curves for
consumer ’s goods. Indifference Cur ves for the flow of income overtime.
2) Derivation & their Interpretation :
Derivatives and approximate value. Derivation and tangents to curves.
Second and higher order derivatives. The application of derivatives in
Economic Theor y.
3) The technique of derivative :
The powers function and its derivation. Rules for the evaluation of
derivatives. The evaluation of second and higher order derivatives.
4) Application of derivatives :
The sign and magnitude of the derivatives. Maximum and minimum
values. Application of the second derivative practical method of finding
maximum value. Points of inflexion problems of monopoly and duopoly.
5) Logarithmic Derivation :
Derivation of exponential and logarithmic function. The elasticity of
function. The evolution of elasticties. The elasticity of demand. Normal
condition of demand cross elasticity and normal costs conditions.
6) Function of two or more variables :
Function of two variables. Function of more than two variables. Function
of several variables in economic theor y. The production function and
constant product curves. The utility functions and indifference curves.
7) Partial Derivatives & t heir applications :
Partial derivatives of functions of two variables. Economic application of
par tial derivatives. Ilomogeneous functions.
8) Differential and Differentiation :
The technique of differentiation. Differentiation of functions.
Differentiation of implicit function. The differentiation of a function of
more than two variables. The substitution of a factor. Substitutions in
other economic problems.
9) The cobweb & other simple Dynamic Models :
Cobweb model. A simple continuous model. Central features of the
model. Model with stocks.
10) Mat rix Algebra :
Equalities, Inequalities. Addition & scalar products. Multiplication of
matrices. Inverse of a matrix, Determinant values. Equivalence and rank
of matrices.
Books Prescribed
1) R. G. D. Allen Mathematical analysis for
Economists chaps, V to XIII.
2) R. G. D. Allen Mathematical Economics
Chaps 1 & XII.
Books Recommended
1) G. C. Ar chibald A Mathematical Treatment of
2) J. Per ty Lewis An Introduction to mathematics for.
Students of Economics.
3) D. W Bushaw & W. Clower. Mathematical Economics.


Comparative Economic System

Section I
(a) An Introduction to the study of Comparative Economic system.
(b) Performance criteria for Economic system.
Prescribed Reading
1. Halm, George N. Economic system : A comparative
Analysis. Holt, Rinchart and
Winston, NEW YORK 1964
Part I chapter I.
2. Lucks, William N. Comparative Economics, Systems.
Harper International Student
Reprint, John Weatherhill. Tokyo,
6 edition th Part I, chapter 1.
3. Bornsten, Morris (ed) Comparative Economic.
System: Model and cases Richard D
Irwid, Homewood, Illions, 1965,
Part I, chapter 1&2,
Section II
(a) Capitalism: Meaning and characteristics: historical Evolution: Major
(b) The Capitalist Economy: Working of the price system productivity:
Income Distribution: Monopoly: unemployment.
(c) An evaluation of the achievement and failing of capitalism. (case study :
United states of America)
Prescribe Readings
1 Loucks Part I chapter s 2 to 4 and Part IX chapter 33.
2 Halm, Part II chapters 5 to 9.
3 Bornsection, Part II chapters 3 to 5.
Section III
Soci alism and Communism
(a) Definition and concept: Brief outline of Historical Evolution of Socialism.
(b) Maximum theories of history, value and capitalist development.
(c) Economic theories of Democratic socialism.
(d) The soviet Economic: Problems of a centrally planed economy.
(e) Evaluation of the achievements and failings of Socialism in Russia.
Prescribed Readings :
Halm, Part III chapter 10 to 13; Part IV chapters 14 to 17; Part V; chapters 8 &
19; Loncks, Part III chapters 5 to 10; Part IV chapter 15 Part VI chapter 23 to
28; Ahmed Shaikh Mehmud, Economics of Islams, Ashraf , Lahor, 1964.
Bornstein, Part II chapter 6 to 12; Part III chapter 15 to 18.
Ahmed Shaikh Mehmud, Economics of Islams , Ashraf , Lahor, 1964. Bornstein,
Part II chapter s 6 to 12 ; Part III chapters 15 to 18.
Section IV
Islamic Economy
(a) The nature of Islamic Economy; its goals and objectives;
(b) Principles relating to Pr operty labour pr oduction and growth, consumption,
trade and marketing and economic organization. The working of the price
system in an Islamic economy.
(c) Interest and the problem of its elimination.
(d) Zakat and the principles of taxation; income distribution and social
(e) Economic functions of the state.
(f) Distinctive features of Islamic economy v/s-a-v/s capitalism and socialism.
Suggested Readings:
(1) Ahmed, Shaikh Mahmud, chapters II, IV, VI, and VII,
(2) Sharif, M. M. A History of muslim Physiology, Pakistan Philosophical
Congress. Otto Harr assowis Wiesbeden 1963, Volume I Book Two chapter
IX,pp. 178—190.
(3) Yusuffuddin, Dr, M. Islam Kai Ma’ashi nazaryat, Hyderabad, 1950 Volume I,
Chapter 3 and 4; Vol. II Chapter 4 to 7.
(4) Yousuf Abu, Islam ka Nizam- e-Mahasil. Tr. By Siddiqi, Nejatullah, Chiragh-e-
Rah, Kar achi 1966.
Suggested Readings:
(1) Oxenfeidt, Alfred and holubuyeby, Vsezolod, Economic system in Action.
Rinehart and winstone New York, 1965, chapter1,2, and3.
(2) Ellis, Howard S. A survey of Contemporary Economic Richard. Dr.Irwin,
Homewood, Illionis. Vol I chapter 22 to 23.
(3) Weight, David Mac, Capitalism The McGraw Hill Book Co.
(4) Pigou, A.C, Socialism vs Capitalism the Macmillan Co. London.
(5) Sweezy Paul M. Socialism McGraw-Hill Book Co. New York 1949.
(6) Nove, Alec. The Soviet Economy, George Allen and Un-win London, 2 nd
Edition 1965.
(7) Landure, Carl, Contamporary Systems, j.B, Lippincott Co, Philadelphla, 1964.
(8) Maududi, Abul Ala, sood, (Urdu), Islamic Publication Lahore.
(9) Maududi, Abul Ala, Islam and Jadeed Ma’ashi Nazaryat, Islamic Publication,
(10)Siddiqui, Nejatullah, Islam ka Falsafa Milkiyat, Islamic Publication, Lahore.
(11)Azhmides Nicoles. P. Mohammadan theories of Finance, The Prentice Book
Home, Lahore Part II.
(12)Qur eshi Dr. Anwar Iqbal, Islam and the theory of Intrest, Ashraf, Lahore.
(13)Attaullah, Sheikh, Revlval of Zakat, Repon, Press, Lahore.
(14)Kutb, Syed Islam ka Nizam-e-Adl Siddiqui, Nejatullah Islamic
Publications, by Al-Farooqi. Ismail R. Social Justice in Islam, American council
of Learned Societies, Washington, 1953.

Economics Of Islam

Section – A
1. Nature of Islamic Economic
Islam and Economi c
Basic principals of Isl amic Economics
Islamic Principals and its comparison with capitalistic. And
Sociali sti c systems.
2. Social fram work of Islam
Value System Moral cade
Legal Fram Work
Economic Institutions
Problems of Social Integration and Islam
3. Evolution of Economics Thr ough in Islam and brief introduction to the
writings of :
i) Qazi Abu yusuf
ii) Imam Mohammad
iii) Qazi Abu Ubaid
iv) Ibn Hazam
v) Shah Waliullah.
Section – B
1. Consumer’s Behaviour:
Islamic Principals of Consumption and the Law of equimar ginal
Concept of austeri ty, in Islam and aggregative consumption.
2. Production:
Importance and goals of production
Organization of factors of Production and distinguishing features of
Islamic classification.
3. Demand and Supply Analysis:
Concepts of Value
Natur e of Market & Market Behavior
Process of Price Cotermination
3. Distribution :
Deter menation of the share of productive factors with special refrence to
the concept of Shirkyat and Mazarbat Problems of rent and retier class.
Wages rates
Intrests and Problems of its elimination
Concept of Profits
An introduction to the Islamic Concept of welfare and theory of
Section – C
Social Econo mics
i) Socio-Economic Obj ectie of the Islamic economy.
ii) Economic functions of the state.
iii) Concept of State ownership and economic control in Islam.
iv) Social security and welfare
Section – D
Public Finance
Source of income and their underlyi ng principals taxation and speci fic
Princi pals of Public expenditure. Publi c dept.
Fiscal Policy :
Section - E
Money & Banking
Money credit and interest free Banking system.
Tenents of monetory policy in Islam.
Principals of trade & internal economic relation.
Books Prescribed
1. Shai kh Mahmud Ahmed. Economic of Islam, Mohammad Ashraf,
1964, Chapter 2, 4, 6 and 7.
2. Nicolas, P.Achindes, Muhammedan Theories of Finance Premier Book
Lahore 1961. Part II.
3. Anwar Iqbal Qureshi, Islam and the theory of Interest, Muhammad Ashraf.
4. S.Abdul Latif. Basic of Islam Culture, Institute by Indo Middle East Studies,
Hydearbad (Deccan), 1965, II, chapter 12.
5. M.Yusufuddin, Islam kai Mo’ashi Nazaryat Hyderabad ( Daccan) 2 volumes.
6. Abul Ala Maududi, sood, Islamic Publication Lahore.
7. Abul Ala Maududi, Islam and Jadeed mo’ashi Nazaryat,Islamic Publication
Books Recommended
1. Ihsan Muhammad Khan World Problems and Muslim Economics, Al -
Quran Printing and Publishing Association Ltd., Karachi, 1952.
2. Raihan Sharif, Islam Social Framewor k, Quetta Lahor e.
3. Sh. Abdullah, Rivial of Zakat, Ripon Printing Press Lahore.
4. Abu Ala Maududi Economic Problems of man and their Islamic Solution, Islam
Publication Ltd., Lahor e.
5. Abul Ala Maududi, Economic Teaching of the Quran. A history of Muslim
Philosophy, Pakistan Philosophical Congress, Otto Harresaowiz Wiesbaden,
1953, vol. I Chapter IX.
6. Abul Ala Maududi, Maslai Milkiyat-e-Zamin, Islamic Publications, Lahore.
7. Abu Yusuf, Islam ka Nizam-e-Mahasil. Tr. By Nijatullah siddiqui Chirag-e-
Rab, Kar achi.
8. Nijatullah Siddiqui, Islam ka Falsafai Milkyat, Islamic Publications, Lahore.
9. Syed kutb, Islam ka Nizam-e-Adl, Tr. By Nijatullah Siddiqui, Islamic
Publications, Lahore, English translation Social Justice in Islam. American
council of Learned Societies, Washington 1953.
10. hifzur Rehman Sezbari, Islam ka Iqtisadi Nizam, Nadwatul Mussanifeen,
11. Relevant articles fr om Islamic culture, Hyderabad, Voice of Islam Karachi
Terjumanul Qur an, Lahor Chiragh-e-Rah, Karachi and Islamic Review, London.
The Criterion Karachi.
12. Economic of islam Ibne Saud (Ma’Shiat-e-Islam)
13. Mashiyat-e-Islam ( Abdul Ala Maududi)
14. Ghair Soodi Bainkari ( Nijatullah Siddiqui)

There shall be five papers of 100 marks each of 3 hours duration



1 Development of macro-economics, Micro economics vs. Macro-economics.
2 The Classical Macro-Economics:
Say’s law and Quantity—Wages, Prices Employment and Production—Savings,
Investment and the role of Interest. Wicks ell’s formulation and monetary and
fiscal policy.
3 The Keynesian Macro Economics :
Obstacles to full employment. Liquidity Preference significance. The Liquidity
Tr ap. Monitor y Management and the r ole of Interest. The consumption function.
Short urn consumption behavior. Other influences on consumption spending.
Keynesian model and its application, comparison of Keynesian and classical
4 Equilibrium :
Income Output and Employment—systems and effects of changes in price level.
5 Accelerations and Multiplier :
Working of acceler ation, its efficiency effects and coefficient. Static and
dynamic mutisector multiplier, employment and foreign trade multipliers.
6 Growth and Fluctuation :
Growth, Investment and employment- stage nation or Exhilaration, Cyclical
7 Employment Policy :
Changes in monetary and fiscal policies, Effect on investment, limitation and
alter native policies.
Coefficient static and dynamic maltisector multiplier, employment and foreign
trade multiplier.
Books Prescribed
Ackely : Macro-Economic Theory General.
Keyne Theory of Employment, Interest and money
Kuribara : Post- Keynesian Economics.
Mc’Dougal & Dernberg : Macro-Economics.
Hansen : Business Cycle and National Income.
Amrican Economic Association Surveys of Economic theory Vol II
Ruyal Economic Society.
Ellia (ed) A Survey of Contemporary
Holly (ed) Economics Vol II
Domar Essays in the Theory of Growth
Samuelson Foundation of Economic Analysis.
Macro Economic Readings



Evolution of International Trade theory from Ricardo to Haberler—
Measurement of cost to assess gain from trade,
1 Pure theory Inter national Trade.
Supply: The derivation of the Transformation curve from the Production
Function. Factor-Price Equalization 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 advanced and developing countries.
Trade and Welfare: Trade as instrument of welfare under multilateralism and
various restrictive variants. Trade and Economics Gr owth : Trade and Growth,
Growth and Trade. Different implication of these inter-relation ships for
specialized economics. Diversification of the economy for increased gr owth.
2 Balance of Payments: (Changes and their adjustment).
The balance of payments of statement. Elements in the adjustment pr ocess.
Elasticities and propensities of Trade. The working of the price and income
effect in the payment mechanism. Inter-relation between monetary and fical
policies and price income changes. Discriminatory trade and payment
restrictions and balance of paymentsadjustment. Concept of balance payments
in the short and long terms. Varation in payments discquilibria in Indistralised
and developing economy. Gold standared and the payments machahism.
3 Internation Investment and Foreign Aid:
Foregion Exchange: Market short term and long ter m Capital movement.
The transfer process .
Forigion Aid: Change in the concept. Terms and Volum of aidproblems
of donor & recipient countries. Absorption Capacity and flow of
4 Commercial Policy:
Tr ade restriction and the structure of world trade since the end of the First
World War. Tarrifs,Quotas, Commodity Agreements, State trading Exchange
control these restriction should be studied from the point of view of their impact
on the direction, composition and volume of the world trade and its effect on
the economic growth and welfare of various regions.
5 International Monetary Problems and Institutions:
Evolution of payment system is western Europe since World War II, payments
problem of the developing countries. Dollar stor ages. its changing character
causes and cur e. The position of Dollar as r eserve currency, its significance for
industrialized and under developed country. Sterling area: its changing r ole in
the postwar period I.M.F. World Bank. GATT and other inter national Economic
6 Regional Economic Integration:
Ustom union issue from viner on words. Attitude of GATT. Regional Cooperation
in western Europe. Retional Integration and economic development.
Regional arr angement in developing areas, with special reference to R.C.D.
1 Basic Rending
_ C.P. Kindle Berger International Economic Richard D. Irwin
Incorporation IIIionis, 1963.
_ American Economic Reading in International Tr ade.
_ Har ry G. Johnson International Trade and Economic Growth.
_ J.E.Meade he Balance of Payment, Oxfor d University Press,
_ Throp, W.L. Tr ade aid or what? John Hope Kings. University
Press, 1964
_ Mikesell, R.F. U.S. Private and Govt. Investment Abroad,
University of Oregon. Books 1962.
_ J.E. Meade Trade and Welfare, Oxford university Pr ess,
_ L.W. Towle International Trade and commercial policy, Harper
And Brothers.
_ Brain Tew International Monetary Cooperation, Hutchinson &
Co. Ltd.
_ S.E. Harris The Dollar crisis (New York Harcourt, Brace and
World Inc. 1961.
_ L. Tar shis Introduction to International Trade and Finance.
(New York John Willy & Sons Inc).
_ Bela Balasia The Theory of Economic Integration, Homewood,
III, Richar d D. Irwin Inc 1961.
2. Supplementary Readings
Harbarier, A.C. Some evidence on the International price
Mechanism, Journal of Political Economy
December, 1957.
MacDougall, D. The Doller Problem, A reappraisal Prinston
University Essay in International Finance, 1960
M. F Miliken & Proposal, Key to united States
W. W. Rostow Foreign Policy (New York) : Harper and Bros.1957
Vanek International Trade : Theory and Policy.
E.S. Mason Controlling World Trade,
McGraw Hill Book.
GATT International Trade. (Annual Publication).
A. Issacs International Trade. Tariffs and Commercial
Policies (Richard D. Irwin Inc. Illinois).
R. F. Mikesell Foreign Exchange in the Postwar World. The
Twentieth Century Fund, (New York.54).
A. G. L. Day The Future of Starling (Oxford Univ.Press)
P. W. Bell The Sterling Area In the Postwar World,(London
R.G Lipsey Theory of Customs Union; A. General Survey.
Economic Journal September 1960.
I. Frank The European Common Market (New Yor k.
Fr ederic A Praegel Inc.1961) .
R. Triffin Yold and Dollar Crisis (Yale University Press 1960)
F.Machtup Palm for Reform of the International Monetory
System (Princeton University.1962)
Richard E. Caves Economic structure and International Trade.
E.S.Masoa Controlling World Trade, McGraw Hill Book.



1. Supply of Money:
(i) Definition of money.
(ii) Process of the Creation of money.
(iii) Institutional Determinants of supply of money.
Government, Commer cial Bank, non Banks financial intermediates and
Centr al Bank.
2. Demand of Money:
(i) Classical view
(ii) Keynesian extensions
(iii) Recent extensions
(a) Chicago School
(b) Patinkin
(c) Gurley Shaw
3. Purchasing Power of Money
(i) The Quality Theory of Money
(ii) The Fundamental Equations
(iii) The conditions for stability
(iv) The theories of loflation and Defination.
4. Monetary Theory:
Integration of real sector with monetar y variables
(i) Theory of Interest _ classical, non- classical, Keynesian, Recent contributions.
(ii) Theory of wages - classical, non-classical, Keynesian, Recent contributions.
(iii) Theory of Price - classical, non-classical, Keynesian, Recent contributions.
5. Monitory Policy: Object ives of Monitory Policy:
(i) Price stability
(ii) Fostering of r adid growth in the economy
(iii) Generation of employment
(iv) Maintenance of balance in International payments.
6. Monetary Management: The mechanism and instr uments of monetary
(i) Mechanism of monitory management
(a) Interstates mechanism
(b) Availability doctrine,
(c) portfolio appr oach
(ii) Tools of monetary management:
(a) Rediscount Rate
(b) Open market operation
(c) Reserve r equirements
(d) Selective credit contr ols
7. External Value of Money:
(a) Gold Standard
(b) Purchasing Power Parity Theory
(c) Balance of Payments Theor y
8. International Liquidity:
(i) International Monetary Fund
(ii) International Bank of Reconstruction and Development
(iii) International Development Association
(vi) International Finance Corporation
(v) Need for an international currency
Monetary Management in Pakistan
Reading List
Chandler, L.V. Economic of Money and Banking
New York Harper and Row.(Latest Edition)
Whittlsey, C. R Money and Banking. Analysis and Policy,
London, Macmillan, 1963
Sapers, R. S Moder n Banking. (Oxford Clarendon Pr ess
De Kock, M. H Central Banking.(London) Staple, Press,
Friedman, M. Studies in the Quantity Theory of Money
(Chicago, Univer sity Press)
Keynes, J.M. The General Theory of Employment
Interest and Money.
Patinkin D. Money Interest and Prices: An Integration
Of Monetary and Value Theory, (Yew
York). For dham University Press, 1966.
Friedman, M. A Program for Monetary stability (New
York. Fordham Univer sity Press, 1966).
Johnson, H.G. “Monetary Theory and Policy” American
Economic Review, June 1962.
Johnson, H.G Keynes Gener al Theory after Twenty Five,
Years, ‘American Economic Review.
May 1951.
A. Schheim, J. Techniques of Monetary Control Baltimor
John Hopkins, 1961
Lendbeck, A A Study of Monetary Analysis, Uppsals,
Abmquistwechsell, 1962
Chandler, L. C Central Banking and Economic
Development : (Bombay University 1962)
Meenai, S.A Mony and Banking in Pakistan, (Allied
Book Corporation :1966)


There are Five alternatives in this paper. Candidates have the option to take any
of the following :
A. History of Economics Thought.
B. Economic of Labour.
C. Econometrics.
D. Development Economics.
E. Management Economics.



A history of the following main schools of thought and main lines of development
about 1700 till about 1960. Mercantilism : Classical Physiocrats; Historical
Socialist and
Marginal Utility Schools: Marshal Ian Economics ; Growth of Welfare Economics.
Stockholm School and Monetary Theor y; Neoclassical school and theor y of
Competition and Consumer Behavior, Growth in the Theories of Business Cycles
International Trade ; Monetary Theor y up to 1936 ; The New Economics and J M,
Recommended Books
1. Monroe Early Economic Thought.
2. Heimann History of Economic Thought
3. Schumpeter History of Economic Analysis
4. E. Cannan A Review of Economic Thought
5. Eric Roll A History of Economic Thought
6. Gide & Rist History of Economic Thought
7. Hutchinson History of Economic Thought
8. Gray History of Economic Thought
9. Hanney History of Economic Thought



PART – 1
1 Introduction : Place and importance of labour in works of Smith Ricardo,
Milli; Marx, Mashall. Webbs, Mitchell, Commands and Keyness. A general
treatment of
labour in highly industrilised countries as compared to emerging nations. Trade
movement in U.K, U.S.A. and U.S.S.R.
2. E mployment Problems : The natur e and basis of labour problems of insecurity.
Difination of unemployment. Disguised unemployment and methods of its
3. Theory of Labour Commitments :
Labour Legislation : Review of Pre-1947 Labour Laws.
Labour Laws after 1967 to date. Some important existing Labour Laws viz. Aet,
regarding worker’s association, working conditions, wages, Industrial dispute and
labour management relation, social security and insurance and some other
Centr al and provincial Acts. Amendments to Labour Laws—Adequacy of Labour
Laws--- implementation of Labour Laws—Labour Legislation and development-
Evolution of Labour Policy.
2. Labour Market: Study of the demand for Labour, Industr ial Location
Requir ement
system, training of labour force and occupational analysis—Contract Labour Non
Agricultural skilled labour requir ements. Supply of labour characteristics of
labour force, mobility of labour and commitment and examination of backwar d
bending supply curves. Lewis model of untimited labour supply and economic
3. Wage Price Analysis : Determination of wages, Payment of wages—wage
differential—Dearness allow once, its effect on prices,employmentand
Price trend, cost of living , real wages labour—welfare provisions.
4. Labour Organization: Short history of labour movement, Growth of Trade
after 1957—Size, geographical location, significance—the bipartits tripartite
the str ucture of unions—political invovlment—I,L.O, and Pakistan—objectives of
union as an institution—Trade Unions and Economic Development.
Books Prescribed
1. Lester Economic of Labour, McMillian & Co,
New York 1958.
2. Dunlop. J.T Industrial Relations System Heary Holt &
Co, New York 1958.
3. Galenson, W. Labour in Developing Economics.
University of California Pr ess, Berkely and
Les Angeles 1962.
4. Kerr.C.,Harbison Industrialism and Industrial Man, Oxford
F.H. Dunlop University Pr ess, New York 1964.
J.T. and Myers, C.A.
5. Moor, W.E Labour Commitment and Social. Change in
developing Areas.
6. Feldman, A.F Social Sciences Research Council New
York, 1960.



1. Introduction to the Theory of Economics, an outline of procedure and main
2. Elements of matrix algebra, Matrices, determinates vicars and vectors
characteristic roots and vectors.
3. Error in variables.
The two-variable linear case
The classical approach
Prediction Problems.
Grouping of observations.
Use of Instrumental variables.
4. Auto-Correlation.
The two variable case.
Conquences of auto-correlated disturbances
Generalized Least squares
Estimation method
Prediction Problems
Legged variables, Dummy Variables
5. Simultaneous-Equation Problems
Simultaneous-Equation Problem
Limited Information Sign Equation (LISE)
Least Variance Ratio (LVR)
Two stage least squar es
K-class Estimator
Tests of Identifying Restrictions
Full information Maximum Likelihood (FIML)
Tr ee stage least squares.
6. Technical Economic Relations.
Micro-Economic Cost Curves.
Technical Development.
7. Economet ric Model.
The descriptions of Complete Systems.
The Movements of Complete Systems.
The pur pose and logic of economic policy.
Books Prescribed
1. Klein L.R A Text Book of Econometrics.
2. Tinter Econometrics Method.
3. Hood and Koopmans Studies in Economic
4. Allen, R.G.D Mathematical Economic
5. Blyth. C.A. The Use of Economics
6. Tinber gen One the Theory of Economics Policy.



1. Concept of Growth & Development—Basic terminology
2. (a) A general fr amework of analysis:
(b) Main constituent of growth
3. Statement and appraisals of theories of growth and Development.
Harr od-Domar Model and its Variants
4. Project Appraisal.
(a) Criteria of project evaluation.
(b) Project evaluation of Development.
5. Issue in Development Planning.
(a) Role of fiscal and monitory policy.
(b) Role of Agriculture.
(c) Role of foreign Trade
(d) Role of For eign Aid
(e) Role of Social Overheads
(f) Population Growth
(g) Role of Public and Private Sector and its balancing.
Reading List
Adelman, Irma Theories of Economic Growth and
Development, Stanford,1986
Bicanic, Rudolf “Economic Growth, Development and
Planning in Socialist Countries” in fast
Nelson (Ed) Economics Growth Rational
Problems, Cases, University of Texas
Press,1960 pp. 171—190
Galbr aith, John K. “Positive Approach to economic Aid”
Foreign Affairs,39 (April 1961 pp. 444,
Haq. M. The Strategy of Economic Planning.
Oxford Press.
Higgins, B. H. Economic Development Problems
Principles and Policies. New York,
Hirchman, A. O. The strategy of economic Development
Nichols W. H “The Place of Agriculture in Economic
Development,” In Keneth E. Berril (ed)
Economic Development with special
Refer ence to East-London 1964, pp.
Nurkes Problems of Capital Formation in
Underdeveloped countries New York,
Ranis. G “A theory of Economic Development”
Amer ican Economic Review, 51 (Sept.
1961. pp. 533—465).
“Innovation, Capital accumulation, and
Economic Development,, American,
Economic Review, 53 June 1965 pp.
Rosestein-Rodan “Notes on the Theory of the Big Push”
in H. E. Ellis (ed). Economic
Development for Latin.
Rostow Some Lessons in Economic
Development USIS Karachi 1964.
Ses, A.K “Soma Notes on the Choice of Capital
Intensity in Development Planning. The
Q.J.E 71 (Nov.1957).pp. 561—584
Schumpeter, J. A “ The Journal of Economic
History(1948). Supplement VII.
Tinbergen, J. “The Optimum Rate of Saving ”The
Economic Journal 66. Dec(1956) pp.
Walkinsly L.J. The Planning and Execution of
Economic development. New York 1963
Appendix 8.
Wilcix, Clair “Pakistan” in Everest E.. Hagen( ed)
Planning Economic Development Home
Wood (III)1963, pp.52—79
E.A.G. Robinson Problems in Economic Development.
London 1965. (ed).
UN, ECAFE Economic Development and Planning in
Asia and the Far East- Social aspect
Economic Bulletin fdr Asla & the Far
East (Bangkok) Vol. 10 No. 3. 1959
Berner, Y.S. Theories of Economic ,Development and
Meir . Gerald M. Lending Issues in Development
Economics. Oxfor d University Press,
New York,1964.
Brution, Henry J. Principles of Development Economics
Hesly The Economics of Aid.



1. A Unified Concept of Management.
Planning Organization, Co-ordination. Motivation Control.
2. The Organizational hierarchy.
The Board of Directors. The Chief Executive. The Super visor.
3. Departmentation.
Basic Depar tmentation. The Assignment of Activities.
4. Staff and Line Relationship.
5. Centralization and De-centralization.
6. Problems of Management.
1. Pricing Strategy
Opportunities for multiple products. Policy on adding new products. Policy on
dropping old products.
2. Pricing Strategy.
Pricing products of lasting disincentiveness. Pricing products. Of perishable
disincentiveness. Pricing standard pr oducts when Competitions are few of
Pricing Cyclical, Pricing product line pricing.
3. Promotional Strategy.
The economic of Adver tising. Method for determining total Advertising Budget.
Cyclical fluctuation of Adver tising. Measuring economic effects of Adver tising.
4. Introduction to Operational Research and Managements.
Linear Programming Quavering Theory Critical Path Scheduling and P.E.R.T.
Theory of games Dynamic Programming and Replacement. Policy Ranking
Techniques Simulation.
1. Problems of Management in Under developed countries :
2. Project Evolution : Public investment Private Investment.
3. Business Structure and Management Method in Pakistan.
(PART - I)
(i) Harold Koontz & Principles of Management (mc-Graw-Hill
Cycil O’Donnel Book Co. New York 1968.
(ii) Elmore Peterson Grosner Plowman Business Organization and Management
& J. M Triket (Richard D. Irwin Inc. New York 1962)
(iii)L. A Allen Management and Organization (Mc- Graw
Hill. New York 1958)
(iv) Hodges Management.
(For Chapter six)
(Part -II)
(i) Jeel Deam Managerial Economics Practice Hall Inc.
1958. New York.
(ii) M. J. Sargeaunt Operational Research for Management
(Heineman Ltd.1965. London)
*Pr inciples of taxation and specific taxes.
Public Debt.
Fiscal Policy.

Paper V


The paper shall comprise all the subject taught as compulsory & optional papers
the M.A economic examination in the university of Karachi.


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