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