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