Economics Nios Plus Two PQ Welcome to your Economics Nios Plus Two PQ Total Questions: 115 Name Mobile No: 1. Which of the following can cause a rightward shift in the supply curve? Higher taxes on production Technological improvement Increase in input prices Decrease in the number of sellers None Hint 2. Marginal Propensity to save is equal to: ΔS/ΔY 1 - C/Y S/Y 1 - ΔC/ΔY None Hint 3. Excess supply is the _________ between supply and demand when supply is _______ than demand. Difference, equal Equality, more Gap, more Gap, less None Hint 4. Product is homogenous under: None of the above Monopolistic competition Perfect competition Both (A) and (B) None Hint 5. What is the median in statistics? The most frequent value The difference between highest and lowest values The middle value when data is arranged in order The average of all data points None Hint 6. When price of a commodity falls, _______ income of the consumer __________. Real, Increases Real, Decreases Money, Decreases Money, Increases None Hint 7. Supply curve of a commodity is normally: positively sloped parallel to OY-axis parallel to OX-axis negatively sloped None Hint 8. When price of a commodity falls, income of the consumer __. Remains constant Decreases Becomes zero Increases None Hint 9. Fill in the blanks: In a government budget, the receipt that either creates a liability or reduces assets is called a _____________ receipt, while the one which neither creates a liability nor reduces assets is called ________________ receipt. Capital, Revenue Revenue, Capital Revenue, Revenue Capital, Capital None Hint 10. Which of the following is a country’s National Income? GNP @ f.c NNP @ mp NNP @ f.c NDP @ f.c None Hint 11. Which correctly matches the functions of money? Measure of value - Contingent Store of value - Basic Measure of value - Basic; Store of value - Contingent Measure of value - Variable None Hint 12. Which of the following can cause a rightward shift of the supply curve? Increase in production cost Natural disaster Increase in taxes Technological improvement None Hint 13. Which of the following is a country’s National Income? NNP at f.c. NNP at m.p. GNP at f.c. NDP at f.c. None Hint 14. Product is homogenous under: None of the above Both (A) and (B) Perfect competition Monopolistic competition None Hint 15. One assumption of the law of supply is: Technology remains constant Demand remains constant Consumers’ income increases Price and supply are inversely related None Hint 16. At break-even point on a consumption curve: consumption = investment savings = investment savings are zero savings = income None Hint 17. What does the Total Cost curve represent? Revenue earned by firm Only variable costs Total fixed cost plus total variable cost Cost of raw materials only None Hint 18. Which of the following is a country's National Income? NDP @ f.c GNP @ f.c NNP @ f.c NNP @ mp None Hint 19. Which of the following is a Stock? None of the above Savings Wealth Income None Hint 20. Fill in the blanks When price of a commodity falls, ________ income of the consumer ________. Real, increases Nominal, decreases Real, decreases Nominal, increases None Hint 21. State True or False: (i) Price elasticity of demand on a point of straight line downward sloping demand curve equals upper segment divided by the lower segment. (ii) Minus sign associated with price elasticity of demand indicates inverse relation between price and demand. Only (i) True Only (ii) True (D) Both (i) and (ii) are True Both False None Hint 22. State True or False: (i) Demand curve of a firm under perfect competition is perfectly inelastic. (ii) Demand curve of a firm under monopolistic competition is perfectly elastic. Both True Only (ii) True Both False Only (i) True None Hint 23. Supply curve of a commodity is normally: negatively sloped parallel to OX-axis parallel to OY-axis positively sloped None Hint 24. The two types of related goods are _______ and _________ goods. Substitute, Complementary Giffen, Veblen Normal, Inferior Complementary, Supplementary None Hint 25. Which of the following is included in National Income? Sale of old house None of the above Receipts from sale of old newspapers Gifts received from employer None Hint 26. Excess demand in a perfectly competitive market occurs ________ the equilibrium price while excess supply occurs _____________ the equilibrium price. At, at Below, below Above, below Below, above None Hint 27. If A and B are complementary goods then increase in price of A will lead to __________ Any one of the above Increase in demand for B No change in demand for B Decrease in demand for B None Hint 28. A and B are substitute goods. An increase in price of A will lead to Decrease in demand for B A very little change in demand for B Increase in demand for B No change in demand for B None Hint 29. State True or False (i) Stationary purchased by an office is a final good. (ii) Sugar purchased by a shopkeeper is an intermediate good. (i) false, (ii) true Both are false (i) true, (ii) false Both are true None Hint 30. If there are 15 skilled and 10 unskilled workers paid Rs. 500 and Rs. 400 respectively, what is the average daily wage? Rs. 460 Rs. 480 Rs. 500 Rs. 440 None Hint 31. Supply of a commodity is the ______ offered for sale at a price during a __________ of time. Quantity, period Cost, production Price, quantity Demand, day None Hint 32. A supply curve parallel to OY-axis is: Elastic supply curve Perfectly inelastic supply curve Inelastic supply curve Perfectly elastic supply curve None Hint 33. Fill in the blanks: In a government budget, the receipt that either creates a liability or reduces assets is called __ receipt, while the one which neither creates a liability nor reduces assets is called __ receipt. Revenue, Capital Surplus, Deficit Deficit, Surplus Capital, Revenue None Hint 34. None 35. Which of these factors causes a rightward shift of supply curve? Increase in taxes Technological deterioration Technological advancement Rise in input prices None Hint 36. Which of the following correctly defines Law of demand? When price falls demand rises Price and demand of a good are inversely related Price and demand move in same direction Other things remaining the same, there is inverse relationship between price and demand of a commodity None Hint 37. Which of the following is a Stock? None of the above Wealth Income Savings None Hint 38. ‘Inter-dependence’ is the feature of which type of market? Perfect competition Monopoly Monopolistic competition Oligopoly None Hint 39. Fill in the blanks ‘Increase’ in demand of a good leads to _________ in equilibrium price and ______ in equilibrium demand. Rise, rise Fall, rise Decrease, decrease No change, no change None Hint 40. A point inside a production possibility curve shows: under utilisation of resources growth of resources overutilisation of resources change in technique of productions None Hint 41. State True or False : (i) Giffen goods do not follow the Law of Demand. (ii) Normal goods follow the Law of Demand. Both (i) and (ii) are true Both (i) and (ii) are false (i) is false and (ii) is true (i) is true and (ii) is false None Hint 42. State True or False: (i) Giffen goods do not follow the Law of Demand. (ii) Normal goods follow the Law of Demand. Both False Only (ii) True Both True Only (i) True None Hint 43. Which statement is correct? (i) Stationery purchased by an office is a final good.(ii) Sugar purchased by a shopkeeper is an intermediate good. (i) True, (ii) False D) Both (i) and (ii) are True (i) False, (ii) False (i) False, (ii) True None Hint 44. Product is homogenous under: Monopolistic competition None of the above Both (A) and (B) Perfect competition None Hint 45. Which of the following supply curves have elasticity of supply > 1? Supply curve cutting OY-axis Supply curve passing through the origin Supply curve cutting OX-axis None of the above None Hint 46. If A and B are complementary goods then increase in price of A will lead to: any one of the above no change in demand for B increase in demand for B decrease in demand for B None Hint 47. ‘Inter-dependence’ is the feature of this type of market: Perfect competition Oligopoly Monopolistic competition Monopoly None Hint 48. Which of the following is a direct tax? Wealth tax All of the above Income Tax Excise duty None Hint 49. Optimum utilisation of resources means: Wasting resources Using resources randomly Using resources inefficiently Using resources in the best possible way to maximize output None Hint 50. Price discrimination is possible under: Monopolistic competition None of the above Perfect competition Monopoly None Hint 51. Supply curve of a commodity is normally ________ Parallel to OY-axis Negatively sloped Parallel to OX-axis Positively sloped None Hint 52. Which of the following is a direct tax? Income Tax Excise duty Wealth tax All of the above None Hint 53. Measure of value is the ______________ function while store of value is the ________________ function of money. Main, Optional Primary, Contingent Basic, Derived Primary, Secondary None Hint 54. Consumption curve: Passes through the origin Cuts OX or OY axis Cuts OY axis Cuts OX axis None Hint 55. Which of the following is a direct tax? Wealth tax Excise duty Income Tax All of the above None Hint 56. Identify the correct pair: Capital - Budget, Revenue - Asset Capital - Receipt, Revenue - Receipt Capital - Expenditure, Revenue - Investment Capital - Income, Revenue - Loss None Hint 57. Which of the following equations is correct? None of the above Direct Taxes + Subsidies = Net Direct Taxes Indirect Taxes – Direct Taxes = Subsidies Indirect Taxes – Subsidies = Net Indirect Taxes None Hint 58. State True or False (i) If with change in price total expenditure on the good also moves in the same direction, the demand for the good is elastic. (ii) Price elasticity of demand (–2) is higher than price elasticity (–1). Both are False (i) True, (ii) False Both are True (i) False, (ii) True None Hint 59. Which of the following supply curves have elasticity of supply > 1? Supply curve cutting OX-axis None of the above Supply curve passing through the origin Supply curve cutting OY-axis None Hint 60. Which of the following is a direct and indirect tax pair? Income Tax - GST VAT - Property Tax Customs Duty - Income Tax Professional Tax - Toll Tax None Hint 61. Supply of a commodity is the ____ offered for sale at a price during a _________ of time. Stock, Day Quantity, Day Stock, Period Quantity, Period None Hint 62. Fill in the blanks Gross Indirect Tax – Net Indirect Tax = _____________. Expenditure Taxes Subsidies Income None Hint 63. Identify correct examples of real and money flow: Money - Goods; Real - Salary Goods - Wages; Services - Interest Real - Goods and Services; Money - Payment of wages Real - Tax; Money - Product None Hint 64. ‘Decrease’ in demand means __ in demand, __ remaining unchanged. No change, price Decrease, price Fluctuation, price Increase, price None Hint 65. Revenue expenditure creates: None of the above Asset Liability Both asset and liability None Hint 66. If A and B are complementary goods then increase in price of A will lead to: no change in demand for B decrease in demand for B increase in demand for B any one of the above None Hint 67. What is meant by ‘optimum utilisation of resources’? Using fewer resources than needed Wasting resources to increase output Using more resources than available Using resources to get maximum output with minimum input None Hint 68. The value of Investment Multiplier (k) depends upon: value of APS value of APC value of MPC savings None Hint 69. Measure of value is the _____ function while store of value is the ___________ function of money. Visible; Invisible Primary; Secondary Basic; Contingent General; Special None Hint 70. Revenue expenditure creates: Both asset and liability Liability None of the above Asset None Hint 71. Which of the following equations is correct? S + I = Y mpc + apc = 1 C + I = Y k = 1 / mpc None Hint 72. Excess demand in a perfectly competitive market occurs __________ the equilibrium price while excess supply occurs _______ the equilibrium price. Above, below Below, at Below, above At, above None Hint 73. When the demand of a good ‘increases’, demand curve: does not shift but there is downward movement along the curve shifts to the right shifts to the left there is no change in demand curve None Hint 74. A point inside a production possibility curve shows: overutilisation of resources under utilization of resources growth of resources change in technique of productions None Hint 75. Fill in the blanks Gross Domestic Product – Net Domestic Product = ________________. Depreciation Capital Profit Revenue None Hint 76. When the demand of a good ‘increases’, demand curve: Shifts to the left There is upward shift in demand curve Shifts to the right Does not shift but there is downward movement along the curve None Hint 77. _________ is an example of direct tax while __________ is an example of indirect tax. Income tax; GST Corporate tax; Import duty Wealth tax; Excise duty Property tax; VAT None Hint 78. Which of the following supply curves have elasticity of supply > 1? None of the above Supply curve cutting OY-axis Supply curve passing through the origin Supply curve cutting OX-axis None Hint 79. Which of the following correctly defines Law of Demand? When price falls, demand rises Other things remaining the same, there is inverse relationship between price and demand of a commodity Price and demand of a good are inversely related Price and demand move in same direction None Hint 80. The firm has to accept the price determined by the industry under: Perfect competition All the above Oligopoly Monopolistic competition None Hint 81. ‘Inter-dependence’ is the feature of this type of market: Oligopoly Perfect competition Monopolistic competition Monopoly None Hint 82. __________ is an example of real flow while ____________ is an example of money flow in an economy. Investment; Capital Production; Consumption Goods and services; Payment of wages Income; Employment None Hint 83. One problem faced in the construction of an index number is: Calculating GDP Measuring inflation directly Selecting a base year Determining consumer preferences None Hint 84. What does optimum utilization of resources mean? Using resources to get maximum output at minimum cost Increasing prices to reduce consumption Keeping resources unused for future Using resources as much as possible regardless of cost None Hint 85. State True or False: (i) If with change in price total expenditure on the good also moves in the same direction, the demand for the good is elastic.(ii) Price elasticity of demand (-2) is higher than price elasticity (-1). Both False Only (ii) True Both True Only (i) True None Hint 86. Excess supply causes market price to ____________ and market quantity to _________. Rise, fall Rise, rise Fall, rise Fall, fall None Hint 87. ____________ is an example of direct tax while ________________ is an example of indirect tax. Income Tax, GST GST, Income Tax Corporation Tax, Wealth Tax Custom Duty, Excise Duty None Hint 88. Which of the following equations is correct? Direct Taxes + Subsidies = Net Direct Taxes Indirect Taxes – Direct Taxes = Subsidies Indirect Taxes – Subsidies = Net Indirect Taxes None of the above None Hint 89. Which curve shows the total cost incurred by a firm? Total Product Curve Total Revenue Curve Total Demand Curve Total Cost Curve None Hint 90. Which of the following is included in National Income? Sale of old house None of the above Receipts from sale of old newspapers Gifts received from employer None Hint 91. Which of the following correctly defines Law of demand? Other things remaining the same, there is inverse relationship between price and demand of a commodity. Price and demand of a good are inversely related. Price and demand move in same direction. When price falls demand rises. None Hint 92. A supply curve parallel to OY-axis is: elastic supply curve inelastic supply curve perfectly inelastic supply curve perfectly elastic supply curve None Hint 93. A and B are substitute goods. An increase in price of A will lead to a very little change in demand for B increase in demand for B decrease in demand for B no change in demand for B None Hint 94. Which of the following is an assumption of law of supply? Government policy is unpredictable Cost of production remains constant Technology and cost of production change frequently Price and supply move in opposite directions None Hint 95. Two categories of measures to control inflation are __ policy and __ policy. Revenue, Capital Trade, Tax Import, Export Fiscal, Monetary None Hint 96. Fill in the blanks: Degree of responsiveness of demand to a price change is called price _________ of demand. Stability Inelasticity Elasticity Flexibility None Hint 97. Average propensity to consume is equal to________ c/y y/c Δy/Δc Δc/Δy None Hint 98. A supply curve parallel to OY-axis is: perfectly elastic supply curve perfectly inelastic supply curve inelastic supply curve easily supply curve None Hint 99. Fill in the blanks: Supply of a commodity is the ________ offered for sale at a price during a ___________ of time. Demand, point Price, interval Stock, phase Quantity, period None Hint 100. Value of Investment Multiplier can be equal to: Infinity Negative Any of the above Zero None Hint 101. Which of the following equations is correct? Indirect Taxes – Subsidies = Net Indirect Taxes Direct Taxes + Subsidies = Net Direct Taxes None of the above Indirect Taxes – Direct Taxes = Subsidies None Hint 102. The firm is a price maker under: None of the above Perfect competition Both (A) and (B) Monopoly None Hint 103. Which of the following is included in National Income? None of the above Sale of old house Gifts received from employer Receipts from sale of old newspapers None Hint 104. Fill in the blanks Goods which are used together are called ____________ goods, while the goods which can be used in place of one another are called ______________ goods. Substitute, independent Substitute, complementary Independent, substitute Complementary, substitute None Hint 105. When the demand of a good ‘increases’, demand curve: does not shift but there is downward movement along the curve shifts to the right there is no change in demand curve shifts to the left None Hint 106. Demand curve of a firm under perfect competition is perfectly inelastic. Demand curve of a firm under monopolistic competition is perfectly elastic. (i) is false and (ii) is true Both (i) and (ii) are false (i) is true and (ii) is false Both (i) and (ii) are true None Hint 107. A and B are substitute goods. An increase in price of A will lead to ____________ Very little change in demand for B Increase in demand for B Decrease in demand for B No change in demand for B None Hint 108. Fill in the blanks: Demand curve parallel to X-axis shows perfectly __________ demand. Elastic Inelastic Unit elastic Perfectly inelastic None Hint 109. Which of the following statements are true? All the above Consumption curve touches OY-axis. Value of investment multiplier (k) can never be less than 1. Consumption expenditure can never be zero. None Hint 110. Which curves are drawn in a diagram showing cost behavior? Total cost and total variable cost Average cost and marginal cost Marginal cost and total variable cost Fixed cost and average cost None Hint 111. A point inside a production possibility curve shows: Growth of resources Under utilisation of resources Change in technique of productions Overutilisation of resources None Hint 112. The value of Investment Multiplier (k) depends upon: savings value of APC value of MPC value of APS None Hint 113. ________ is an example of real flow while _______ is an example of money flow in an economy. Labour services, Salary paid Rent, Land Salary paid, Labour services Goods, Production None Hint 114. Revenue expenditure creates: None of the above Both asset and liability Asset Liability None Hint 115. What is one assumption of the Law of Supply? Supply is independent of demand Supply remains constant regardless of price Supply increases as price increases Supply decreases as price increases None Hint Time's up Share: admin Previous post Political Science Nios Plus Two PQ V July 2, 2025 Next post Business Studies Nios plus two PQ IV July 2, 2025
