CSS Economics Complete Guide With Free Preparation Material

Paper I (100 Marks)

I. Micro Economics

• Consumer behavior
• Market demand and supply
• Elasticity of demand and supply
• Static and comparative static analysis
• Partial and general equilibrium analysis
• Theory of the firm
• Producer’s equilibrium
• Pricing of factors of production

II. Macro Economics

• Basic economic concepts
• National income accounting
• Consumption function
• Multiplier and accelerator
• Components of aggregate demand
• Labour demand and supply
• Unemployment
• Equilibrium income and output (various schools of thought)
• Inflation

III. Money and Banking

• Functions of money
• Quantity theory (Fisher and Cambridge)
• Note issue systems
• Credit creation
• Functions of central banks
• Credit control instruments
• Goals vs. operational and intermediate targets
• Reserves, liquidity premium
• Term structure of interest rates
• Transmission mechanism of monetary policy
• Theory of liquidity preference
• Time value of money
• Capital structure and restructuring
• IS-LM analysis and central bank role
• Money demand and supply

IV. Public Financing

• Government expenditure
• Sources of revenue
• Privatization
• Taxes and non-taxes
• Tax incidence
• Public debt and repayment methods
• Deficit financing
• General equilibrium analysis
• Welfare economics
• Fiscal policy

V. International Trade

• Comparative advantage and factor endowments
• Trade and growth
• Colonialism, imperialism, and trade
• Trade restrictions
• Economic integration
• Trade policy
• Balance of payments
• Foreign exchange
• International monetary system
• Custom unions

VI. Economic Development

• Development concepts
• Human development
• Historical growth and development
• Development theories
• Structural issues
• Income distribution and poverty
• Agriculture, industry, trade, and finance
• Environment and development

Paper II (100 Marks) – Economics of Pakistan

I. Development

• Underdevelopment characteristics
• Growth vs. redistributive justice
• Absolute and relative poverty
• Basic needs approach
• Sustainable development
• Environmental degradation

II. Planning Experience

• Planning strategy evaluation
• Governance and institutions

III. Agricultural Development

• Agricultural policies over time
• Monetary and fiscal measures
• Green revolution strategy
• Land reforms (1950–1980)
• Cooperative farming
• Rural development

IV. Industrial Development

• Early strategies
• Financial and development institutions
• Public sector roles
• Nationalization and its effects
• Income and wealth concentration
• Import substitution vs. export-led growth

V. Foreign Trade and Aid

• BOP trends and terms of trade
• Trade direction changes
• Major imports and exports
• Remittances and migration
• Foreign aid costs and benefits
• Foreign investment role

VI. Privatization and Deregulation

• Concepts and operational aspects
• International comparisons
• Pakistan’s experience

VII. Interest-Free Banking in Pakistan

VIII. Energy Policy of Pakistan

IX. Social Sector Development in Pakistan

X. Major Issues in Pakistan’s Economy

• Energy crisis
• Corruption
• Bad governance
• External debt and dependency
• Unemployment
• Income inequality
• Inflation
• Fiscal and trade deficits
• Balance of payment issues
• Irrigation water shortage