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