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