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