Economics Nios Plus Two PQ Welcome to your Economics Nios Plus Two PQ Total Questions: 115 Name Mobile No: 1. 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 (i) True Only (ii) True Both False None Hint 2. Consumption curve: Cuts OY axis Passes through the origin Cuts OX or OY axis Cuts OX axis None Hint 3. Which curves are drawn in a diagram showing cost behavior? Marginal cost and total variable cost Fixed cost and average cost Average cost and marginal cost Total cost and total variable cost None Hint 4. Which of the following statements are true? Value of investment multiplier (k) can never be less than 1. Consumption expenditure can never be zero. Consumption curve touches OY-axis. All the above None Hint 5. When price of a commodity falls, _______ income of the consumer __________. Real, Decreases Money, Increases Money, Decreases Real, Increases None Hint 6. Supply curve of a commodity is normally: parallel to OX-axis negatively sloped parallel to OY-axis positively sloped None Hint 7. A point inside a production possibility curve shows: overutilisation of resources change in technique of productions growth of resources under utilization of resources None Hint 8. Which of the following is a Stock? Income Savings None of the above Wealth None Hint 9. Fill in the blanks: Degree of responsiveness of demand to a price change is called price _________ of demand. Inelasticity Flexibility Stability Elasticity None Hint 10. 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 Both False Only (ii) True Both True None Hint 11. Fill in the blanks: Supply of a commodity is the ________ offered for sale at a price during a ___________ of time. Demand, point Stock, phase Quantity, period Price, interval None Hint 12. If A and B are complementary goods then increase in price of A will lead to: any one of the above no change in demand for B increase in demand for B decrease in demand for B None Hint 13. Value of Investment Multiplier can be equal to: Any of the above Infinity Negative Zero None Hint 14. Which curve shows the total cost incurred by a firm? Total Cost Curve Total Revenue Curve Total Demand Curve Total Product Curve None Hint 15. _________ is an example of direct tax while __________ is an example of indirect tax. Property tax; VAT Wealth tax; Excise duty Corporate tax; Import duty Income tax; GST None Hint 16. 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 17. 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 18. Fill in the blanks When price of a commodity falls, ________ income of the consumer ________. Nominal, increases Real, decreases Nominal, decreases Real, increases None Hint 19. 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 a very little change in demand for B decrease in demand for B None Hint 20. At break-even point on a consumption curve: savings are zero savings = income savings = investment consumption = investment None Hint 21. 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) True D) Both (i) and (ii) are True (i) False, (ii) False None Hint 22. Price discrimination is possible under: Perfect competition None of the above Monopolistic competition Monopoly None Hint 23. 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 24. Fill in the blanks Gross Domestic Product – Net Domestic Product = ________________. Depreciation Profit Capital Revenue None Hint 25. If A and B are complementary goods then increase in price of A will lead to: any one of the above no change in demand for B increase in demand for B decrease in demand for B None Hint 26. None 27. Two categories of measures to control inflation are __ policy and __ policy. Trade, Tax Revenue, Capital Import, Export Fiscal, Monetary None Hint 28. 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 29. Average propensity to consume is equal to________ y/c c/y Δc/Δy Δy/Δc None Hint 30. If A and B are complementary goods then increase in price of A will lead to __________ Decrease in demand for B Increase in demand for B No change in demand for B Any one of the above None Hint 31. Measure of value is the ______________ function while store of value is the ________________ function of money. Basic, Derived Main, Optional Primary, Contingent Primary, Secondary None Hint 32. 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 33. Identify the correct pair: Capital - Receipt, Revenue - Receipt Capital - Expenditure, Revenue - Investment Capital - Income, Revenue - Loss Capital - Budget, Revenue - Asset None Hint 34. Revenue expenditure creates: None of the above Asset Liability Both asset and liability None Hint 35. 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 Only (i) True (D) Both (i) and (ii) are True Only (ii) True None Hint 36. Product is homogenous under: Perfect competition Monopolistic competition None of the above Both (A) and (B) None Hint 37. Which of the following is an assumption of law of supply? Price and supply move in opposite directions Technology and cost of production change frequently Cost of production remains constant Government policy is unpredictable None Hint 38. __________ is an example of real flow while ____________ is an example of money flow in an economy. Goods and services; Payment of wages Investment; Capital Income; Employment Production; Consumption None Hint 39. Which of the following supply curves have elasticity of supply > 1? Supply curve cutting OX-axis Supply curve passing through the origin None of the above Supply curve cutting OY-axis None Hint 40. Which of the following is a country’s National Income? NNP at m.p. GNP at f.c. NNP at f.c. NDP at f.c. None Hint 41. 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 42. Which of the following correctly defines Law of demand? 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 Price and demand of a good are inversely related None Hint 43. What is the median in statistics? The average of all data points The difference between highest and lowest values The most frequent value The middle value when data is arranged in order None Hint 44. Revenue expenditure creates: Liability Asset Both asset and liability None of the above None Hint 45. A supply curve parallel to OY-axis is: perfectly inelastic supply curve inelastic supply curve easily supply curve perfectly elastic supply curve None Hint 46. A and B are substitute goods. An increase in price of A will lead to A very little change in demand for B Decrease in demand for B No change in demand for B Increase in demand for B None Hint 47. A point inside a production possibility curve shows: under utilisation of resources change in technique of productions overutilisation of resources growth of resources None Hint 48. 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 49. A point inside a production possibility curve shows: Change in technique of productions Growth of resources Overutilisation of resources Under utilisation of resources None Hint 50. Fill in the blanks ‘Increase’ in demand of a good leads to _________ in equilibrium price and ______ in equilibrium demand. Fall, rise Decrease, decrease No change, no change Rise, rise None Hint 51. Identify correct examples of real and money flow: Real - Tax; Money - Product Goods - Wages; Services - Interest Real - Goods and Services; Money - Payment of wages Money - Goods; Real - Salary None Hint 52. The two types of related goods are _______ and _________ goods. Normal, Inferior Substitute, Complementary Complementary, Supplementary Giffen, Veblen None Hint 53. 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 54. Which of the following is a direct tax? Wealth tax Excise duty Income Tax All of the above 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 true (i) is false and (ii) is true Both (i) and (ii) are false (i) is true and (ii) is false None Hint 56. 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 57. Product is homogenous under: Monopolistic competition None of the above Perfect competition Both (A) and (B) None Hint 58. Which of the following is a direct tax? All of the above Income Tax Wealth tax Excise duty None Hint 59. Excess demand in a perfectly competitive market occurs ________ the equilibrium price while excess supply occurs _____________ the equilibrium price. Below, below Above, below Below, above At, at None Hint 60. Fill in the blanks: Demand curve parallel to X-axis shows perfectly __________ demand. Perfectly inelastic Inelastic Elastic Unit elastic None Hint 61. ____________ 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 62. Which of the following is a country’s National Income? NNP @ f.c NNP @ mp GNP @ f.c NDP @ f.c None Hint 63. Which of the following equations is correct? S + I = Y k = 1 / mpc mpc + apc = 1 C + I = Y None Hint 64. What does the Total Cost curve represent? Revenue earned by firm Only variable costs Total fixed cost plus total variable cost Cost of raw materials only None Hint 65. Which of the following equations is correct? None of the above Indirect Taxes – Subsidies = Net Indirect Taxes Direct Taxes + Subsidies = Net Direct Taxes Indirect Taxes – Direct Taxes = Subsidies None Hint 66. The value of Investment Multiplier (k) depends upon: value of APC savings value of MPC value of APS None Hint 67. Which of the following can cause a rightward shift of the supply curve? Natural disaster Increase in taxes Technological improvement Increase in production cost None Hint 68. One problem faced in the construction of an index number is: Selecting a base year Determining consumer preferences Calculating GDP Measuring inflation directly None Hint 69. Which correctly matches the functions of money? Measure of value - Basic; Store of value - Contingent Measure of value - Contingent Measure of value - Variable Store of value - Basic None Hint 70. 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. Surplus, Deficit Deficit, Surplus Revenue, Capital Capital, Revenue None Hint 71. If there are 15 skilled and 10 unskilled workers paid Rs. 500 and Rs. 400 respectively, what is the average daily wage? Rs. 500 Rs. 480 Rs. 460 Rs. 440 None Hint 72. Which of the following is a direct and indirect tax pair? Income Tax - GST Customs Duty - Income Tax Professional Tax - Toll Tax VAT - Property Tax None Hint 73. Which of the following can cause a rightward shift in the supply curve? Higher taxes on production Decrease in the number of sellers Technological improvement Increase in input prices None Hint 74. 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 75. Fill in the blanks Gross Indirect Tax – Net Indirect Tax = _____________. Taxes Income Expenditure Subsidies None Hint 76. A supply curve parallel to OY-axis is: Perfectly inelastic supply curve Perfectly elastic supply curve Inelastic supply curve Elastic supply curve None Hint 77. ‘Inter-dependence’ is the feature of this type of market: Monopoly Monopolistic competition Oligopoly Perfect competition None Hint 78. Which of the following is included in National Income? Gifts received from employer None of the above Sale of old house Receipts from sale of old newspapers None Hint 79. Which of the following is a country's National Income? NNP @ f.c GNP @ f.c NDP @ f.c NNP @ mp None Hint 80. Supply of a commodity is the ____ offered for sale at a price during a _________ of time. Stock, Period Quantity, Day Stock, Day Quantity, Period None Hint 81. Revenue expenditure creates: Both asset and liability None of the above Liability Asset None Hint 82. 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 83. 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 move in same direction. Price and demand of a good are inversely related. None Hint 84. 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 85. Product is homogenous under: Perfect competition Both (A) and (B) None of the above Monopolistic competition None Hint 86. Which of the following is a Stock? Income None of the above Savings Wealth None Hint 87. 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 88. ‘Inter-dependence’ is the feature of which type of market? Monopolistic competition Monopoly Perfect competition Oligopoly None Hint 89. The firm is a price maker under: Perfect competition Monopoly None of the above Both (A) and (B) None Hint 90. Supply curve of a commodity is normally ________ Parallel to OY-axis Parallel to OX-axis Negatively sloped Positively sloped None Hint 91. Supply of a commodity is the ______ offered for sale at a price during a __________ of time. Demand, day Quantity, period Cost, production Price, quantity None Hint 92. Optimum utilisation of resources means: Using resources in the best possible way to maximize output Using resources randomly Wasting resources Using resources inefficiently None Hint 93. ________ is an example of real flow while _______ is an example of money flow in an economy. Rent, Land Goods, Production Labour services, Salary paid Salary paid, Labour services None Hint 94. 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 95. The firm has to accept the price determined by the industry under: Perfect competition All the above Oligopoly Monopolistic competition None Hint 96. Supply curve of a commodity is normally: negatively sloped parallel to OY-axis positively sloped parallel to OX-axis None Hint 97. 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 (i) True Both False Only (ii) True None Hint 98. Which of the following supply curves have elasticity of supply > 1? Supply curve cutting OY-axis None of the above Supply curve passing through the origin Supply curve cutting OX-axis None Hint 99. What is meant by ‘optimum utilisation of resources’? Using fewer resources than needed Wasting resources to increase output Using resources to get maximum output with minimum input Using more resources than available None Hint 100. Excess supply causes market price to ____________ and market quantity to _________. Fall, fall Fall, rise Rise, rise Rise, fall None Hint 101. Excess supply is the _________ between supply and demand when supply is _______ than demand. Gap, less Difference, equal Gap, more Equality, more None Hint 102. ‘Decrease’ in demand means __ in demand, __ remaining unchanged. Increase, price No change, price Decrease, price Fluctuation, price None Hint 103. Excess demand in a perfectly competitive market occurs __________ the equilibrium price while excess supply occurs _______ the equilibrium price. Below, above Above, below At, above Below, at None Hint 104. Which of the following supply curves have elasticity of supply > 1? Supply curve passing through the origin None of the above Supply curve cutting OX-axis Supply curve cutting OY-axis None Hint 105. What is one assumption of the Law of Supply? Supply increases as price increases Supply decreases as price increases Supply remains constant regardless of price Supply is independent of demand None Hint 106. Which of the following is a direct tax? Excise duty Wealth tax Income Tax All of the above None Hint 107. A supply curve parallel to OY-axis is: perfectly inelastic supply curve elastic supply curve perfectly elastic supply curve inelastic supply curve None Hint 108. 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 109. 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) False, (ii) True Both are True (i) True, (ii) False None Hint 110. ‘Inter-dependence’ is the feature of this type of market: Monopoly Oligopoly Monopolistic competition Perfect competition None Hint 111. When price of a commodity falls, income of the consumer __. Increases Becomes zero Decreases Remains constant None Hint 112. The value of Investment Multiplier (k) depends upon: value of APC value of MPC value of APS savings None Hint 113. Marginal Propensity to save is equal to: 1 - C/Y S/Y 1 - ΔC/ΔY ΔS/ΔY None Hint 114. Measure of value is the _____ function while store of value is the ___________ function of money. Visible; Invisible Primary; Secondary General; Special Basic; Contingent None Hint 115. Which of these factors causes a rightward shift of supply curve? Technological deterioration Rise in input prices Increase in taxes Technological advancement 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
