MS/MPhil & PhD Admission Test Pattern-Department of Economics (Fall 2026)

Advance Microeconomics

Economics of Information (Asymmetric Information, Moral Hazard, Adverse Selection, Signalling, Principal Agent Problem)

Optimization over time (2-period intertemporal choice, interest rate dynamics, and Slutsky equation)

Choice Under Uncertainty (Von Neuman Morgenstern Utility Function, Risk Return trade-off, Attitude Towards Risk, Risk Management Strategies)

Game Theory (Dominant Strategy, Prisoner's Dilemma, Nash Equilibrium, Pure Strategies, and Mixed Strategies)

General Equilibrium (Pareto Efficiency, First and Second Welfare Theorems, Walrasian Equilibrium

Advance Macroeconomics:

Growth Theories (Solow Growth Model, Growth Accounting, Convergence Theory, Endogenous Growth Theories)

Consumption Theories (Absolute Income Hypothesis, Permanent and Life Cycle Income Hypothesis, Random Walk Hypothesis)

Monetary and Fiscal Policy of Pakistan

Advanced Econometrics:

Panel and Time Series Data Analysis (Instrumental Variable, GMM, VAR, ARDL, and Co-integration)

Qualitative Response Models (Logit, Probit and Multinomial Models)

Research Methodology

Types of Research

Types of Data: Primary and Secondary Data

Variable Characteristics

Measurement of Variables using direct, indirect, and derived measurements

Sampling Techniques

Research Proposal Writing

Microeconomics

Consumer Theory (Utility Functions and Consumer Preferences, Consumer Optimal using Indifference Curve and Budget Line,  Marshallian and Hicksian Demand Functions, Direct and Indirect Utility Functions, Expenditure Function, Slutsky Equation and Price Effect decomposition)

Producer Theory (Production Functions, Producer Optimal using Isoquant and Iso-cost curve, Cost and Profit Function, and their properties)

Market Structure (Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition)

Macroeconomics                       

Classical Economics (Classical Aggregate Demand and Supply,  Quantity Theory of Money, Money Neutrality, Crowding Out Hypothesis)

Keynesian Economics (IS-LM framework and General Equilibrium Keynesian Aggregate Demand and Supply, Fiscal and Monetary Policy Effectiveness)

National Income Accounts (Approaches to measure National Income Accounts, Public and Private Saving, Current and Capital Account, Circular Flow of Income, Business Cycle)

Econometrics

Basic Econometrics (CLRM Assumptions, OLS, Autocorrelation, Multicollinearity, Heteroskedasticity)

 ANOVA and ANCOVA models, Dummy variables Approach

Economy of Pakistan

Current Issues, Challenges, and Way Forward (Agriculture Sector, Industrial Sector, Services and Trade, Energy, Climate, and Urbanization)