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