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