Module A : Group 1
To provide understanding of main economic
concepts and principles - their uses, relevance
in economic analysis and application to economic
environment of trade, industry and banking.
SECTION - 1
( 30 Marks)
Nature, definition and scope of economics; micro
economics, importance, limitations; macro
economics, importance, limitations, need for
integrating micro and macro economics,
characteristics of economic wants and utility,
scale of preferences, indifference curves,
marginal rate of substitution, principles of
diminishing marginal rate of substitution,
properties of indifference curve, analysis of
consumer behavior, utility analysis, application
of indifference curve in consumption. Various
economic systems and their approaches towards
basic economic issues.
Demand and Supply
The law of demand and supply, elasticity of
demand and supply, elastic and inelastic demand
and supply, types of elasticity, measurement of
elasticity of demand and supply, scope of demand
curve and price elasticity, income and
substitution effect, supply functions,
equilibrium of demand and supply.
Factors of Production:
Scale of production, production possibility
curve, and production function, equal product
curves or isoquants, cost and cost curves. Laws
of Diminishing Returns; fixed, variable, total,
average, marginal, opportunity, shadow,
Market Price Structure:
Meaning of market, classification of market,
perfect and imperfect markets. Perfect
competition, imperfect competition, monopoly,
oligopoly, duopoly. Equilibrium approaches,
equilibrium under perfect competition,
Significance of factor pricing, meaning of
distribution, functional vs personal
distribution, marginal productivity theory,
determination of rent, wages, interest and
profit; role of price mechanism.
SECTION - 2
( 30 Marks)
Meaning and concept of national income,
distribution of national income and
marginal productivity theory. Concept of
personal income, disposal personal
income and their mutual relationship.
Concepts of gross domestic product
(GDP), gross national product (GNP), net
national product (NNP). The income
approach and expenditure approach to
GNP; real versus money income; GNP
defoliators other social accounts link
function; meaning, factors influencing
consumption, short-run and long-run
consumption function, average propensity
to consume, marginal propensity to
consume. Investment and saving function;
determinate of investment, marginal
efficiency of capital, interest rate,
investment and income, instability of
income; income, output and employment
determination. Aggregate demand and
aggregate supply approach. Simple
multiplier and accelerator analysis.
between public and private finance,
importance. General principles, forms
and methods of taxation; sources of
revenue, public expenditure. Fiscal
incentives for promoting investments;
managing aggregate demand through fiscal
forms and functions of money.
Quantitative theory of money. Theories
of inflation, deflation and stagflation
and their impact on growth, price
stability and unemployment. Role and
functions of central bank, commercial
banks, specialized financial
institutions, non-banking financial
institutions, capital and money markets
including stock and bond markets with
regard to financial needs of business
balance of payments, mechanism of
foreign exchange rates, principle of
comparative advantage, import control
and protective tariffs, GATT and W.T.O.
Agreements and their impact on
SECTION - 3
( 20 Marks)
The Role of
Agriculture and Industry:
The importance, role and growth of
agriculture and industries; their main
problems and evaluation of measures
taken for solution. Role of small scale
and cottage industries, critical study
of five years plans and need for foreign
assistance and investment.
financial institutions in capital
formation and economic development of
Pakistan. Role and functions of State
Bank of Pakistan with regard to monetary
and fiscal policies, inflation, foreign
investment. Rupee exchange rate and its
convertibility, balance of trade and
balance of payments.
SECTION - 4
( 20 Marks)
Islamic economic system, its nature,
scope and importance. Interest and its
elimination. Zakat and Ushr and the
principles of taxation. Income
distribution and social responsibility
in Islamic economics. Distinction
between Islamic economic system and
other economic systems.
To provide fundamental understanding of the
principles, role and scope of accounting in
relation to the preparation of financial
statements for incorporated and unincorporated
businesses, analysis and interpretation of
financial information for decision making.
SECTION - 1
ACCOUNTING SYSTEMS AND REPORTING
( 40 Marks)
The scope and purpose of accounting,
principles, concepts, conventions, and
systems of accounting and bases of
accounting. Generally accepted
accounting principles, going concern,
accruals, consistency, prudence,
materiality, matching. The
interpretation and recording of business
transactions and its codification in
computer based accounting system
including internal control. Control
accounts. Income measurement.
Recognition of revenue and expenses,
matching of expenses and revenue.
Capital and revenue classification.
process relating to preparation of trial
balance, rectification of errors.
Reconciliation statement. Adjustments to
record transactions. Provisions for
anticipated revenue, expenses and
losses. Stock valuation methods and
adjustments. Depreciation accounting.
Treatment of intangible assets.
Preparation of profit and loss account
and balance sheet. Accounting statements
from incomplete records. Accounts of
sole traders. Accounts of simple
consignment, department and joint
ventures. Branch accounts excluding
foreign branches. Formation of
partnership and preparation of accounts
of firm and distribution of partnership
profits. Conversion of partnership into
SECTION - 2
COMPANY ACCOUNTING AND ANALYSIS
( 60 Marks )
Accounting treatment of ordinary and
preference shares, debentures and
redeemable securities. Basic assumptions
and qualitative criteria underlying the
accounting system and financial
reporting of incorporated companies.
Preparation and presentation of
financial statements and reports as per
requirements of the Companies Ordinance,
1984 and International Accounting
Standards as adopted in Pakistan.
Interpretation of Financial Reports:
ratio analysis in respect to
profitability and efficiency of fund
employed. The form and contents of cash
flow statement and an elementary
interpretation of its significance.
Limitations of historical reporting.
MATHEMATICS AND STATISTICS
To provide knowledge of basic techniques of
mathematics and statistics as applied in the
operation and decision making of a business.
SECTION - 1
( 50 Marks )
Fundamentals of mathematics, number
system, integers, decimals and
fractions, sets and notations. Basic
algebraic operations; involution,
evolution, H.C.F. and L.C.M. Techniques
of factorization; sequence and series,
arithmetic and geometrical progression,
linear and non-linear equations of one
and more than one variables. Laws of
indices, exponential and logarithmic
equations and expressions;
perambulation, combination, binomial
theorem. Locus and its equation.
Geometrical mean of an equation.
Straight line and its equations and its
application in business. Application of
curves in business and finance.
direct and indirect proportion,
percentage, simple and compound
interest, effective rate of interest,
annuities, present and future values.
basic concept of differentiation: sum,
difference, product and quotient, rules
of differentiation. Marginal function.
Application of derivatives and
anti-derivatives in business and
Introduction, graphical linear
programming, simplex techniques,
transportation technique & assignment
path analysis, Gantt chart, analysis of
network, crashing program, evaluation,
Introduction, pure strategy games, mixed
SECTION - 2
( 50 Marks )
Presentation of Numerical Information:
Official sources of economics and
business data. Survey methods. Design of
questionnaire. Sampling methods;
interview, postal questionnaire.
Tabulation. Graphs, charts and diagrams.
Frequency distribution. Measures of
location; mean, median and mode,
Measures of dispersion: Quartile
deviation and Standard deviation.
Skewness coefficient of variation.
and regression. Product moment
correlation coefficient. Rank
correlation coefficient. Linear
regression using the least square
method. Time series analysis. Component
of a time series: trend, cynical,
seasonal and random. Moving average.
Simple method forecasting.
Price relative method. Aggregate method.
Problems involved in the rise of index
Introduction to probability from
practical viewpoint. Equity likely
outcomes. Combinations of events. Union
of events, conditional probability,
mutually exclusive events. Statistical
inference. Confidence intervals and
hypothesis testing for a single mean and