Economics Nios Plus Two PQ Welcome to your Economics Nios Plus Two PQ Total Questions: 115 Name Mobile No: 1. 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 decrease in demand for B increase in demand for B None Hint 2. What is one assumption of the Law of Supply? Supply decreases as price increases Supply remains constant regardless of price Supply increases as price increases Supply is independent of demand None Hint 3. Which of the following is a direct tax? Excise duty Wealth tax Income Tax All of the above None Hint 4. 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 5. 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 6. 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 7. One problem faced in the construction of an index number is: Determining consumer preferences Measuring inflation directly Calculating GDP Selecting a base year None Hint 8. 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 Surplus, Deficit Capital, Revenue None Hint 9. 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 10. ‘Inter-dependence’ is the feature of this type of market: Perfect competition Monopolistic competition Monopoly Oligopoly None Hint 11. The two types of related goods are _______ and _________ goods. Substitute, Complementary Complementary, Supplementary Giffen, Veblen Normal, Inferior None Hint 12. 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 Both False (D) Both (i) and (ii) are True Only (ii) True None Hint 13. The firm has to accept the price determined by the industry under: All the above Monopolistic competition Perfect competition Oligopoly None Hint 14. 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. 440 Rs. 460 None Hint 15. Which of the following is a direct tax? Wealth tax All of the above Excise duty Income Tax None Hint 16. Excess supply causes market price to ____________ and market quantity to _________. Fall, rise Rise, fall Fall, fall Rise, rise None Hint 17. Measure of value is the ______________ function while store of value is the ________________ function of money. Main, Optional Primary, Contingent Primary, Secondary Basic, Derived None Hint 18. Excess supply is the _________ between supply and demand when supply is _______ than demand. Gap, more Equality, more Gap, less Difference, equal None Hint 19. Which of the following is included in National Income? None of the above Sale of old house Gifts received from employer Receipts from sale of old newspapers None Hint 20. 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 21. When the demand of a good ‘increases’, demand curve: Shifts to the right Shifts to the left There is upward shift in demand curve Does not shift but there is downward movement along the curve None Hint 22. 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) True, (ii) False Both are False (i) False, (ii) True Both are True None Hint 23. Revenue expenditure creates: Asset None of the above Liability Both asset and liability None Hint 24. Excess demand in a perfectly competitive market occurs ________ the equilibrium price while excess supply occurs _____________ the equilibrium price. Above, below Below, above At, at Below, below None Hint 25. A point inside a production possibility curve shows: under utilisation of resources change in technique of productions growth of resources overutilisation of resources None Hint 26. The value of Investment Multiplier (k) depends upon: value of MPC value of APS savings value of APC 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. One assumption of the law of supply is: Technology remains constant Demand remains constant Consumers’ income increases Price and supply are inversely related None Hint 29. _________ is an example of direct tax while __________ is an example of indirect tax. Corporate tax; Import duty Income tax; GST Property tax; VAT Wealth tax; Excise duty None Hint 30. 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 Increase in demand for B No change in demand for B None Hint 31. Fill in the blanks Gross Domestic Product – Net Domestic Product = ________________. Depreciation Capital Profit Revenue None Hint 32. Identify the correct pair: Capital - Receipt, Revenue - Receipt Capital - Income, Revenue - Loss Capital - Expenditure, Revenue - Investment Capital - Budget, Revenue - Asset None Hint 33. At break-even point on a consumption curve: savings are zero consumption = investment savings = income savings = investment None Hint 34. Which of the following supply curves have elasticity of supply > 1? Supply curve cutting OY-axis Supply curve cutting OX-axis Supply curve passing through the origin None of the above None Hint 35. Which of the following is a Stock? Wealth Income Savings None of the above None Hint 36. Which of the following equations is correct? Indirect Taxes – Direct Taxes = Subsidies None of the above Direct Taxes + Subsidies = Net Direct Taxes Indirect Taxes – Subsidies = Net Indirect Taxes None Hint 37. 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 38. The value of Investment Multiplier (k) depends upon: value of APC savings value of APS value of MPC None Hint 39. 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 40. The firm is a price maker under: None of the above Both (A) and (B) Perfect competition Monopoly None Hint 41. 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 decrease in demand for B any one of the above None Hint 42. State True or False: (i) Giffen goods do not follow the Law of Demand. (ii) Normal goods follow the Law of Demand. Only (ii) True Both False Both True Only (i) True None Hint 43. ____________ is an example of direct tax while ________________ is an example of indirect tax. Income Tax, GST GST, Income Tax Custom Duty, Excise Duty Corporation Tax, Wealth Tax None Hint 44. Revenue expenditure creates: Liability Asset None of the above Both asset and liability None Hint 45. Fill in the blanks ‘Increase’ in demand of a good leads to _________ in equilibrium price and ______ in equilibrium demand. No change, no change Decrease, decrease Rise, rise Fall, rise None Hint 46. Fill in the blanks: Degree of responsiveness of demand to a price change is called price _________ of demand. Flexibility Inelasticity Stability Elasticity None Hint 47. 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 of a good are inversely related Price and demand move in same direction When price falls demand rises None Hint 48. A point inside a production possibility curve shows: under utilization of resources overutilisation of resources change in technique of productions growth of resources None Hint 49. Which curve shows the total cost incurred by a firm? Total Revenue Curve Total Cost Curve Total Demand Curve Total Product Curve None Hint 50. ‘Decrease’ in demand means __ in demand, __ remaining unchanged. No change, price Increase, price Fluctuation, price Decrease, price None Hint 51. Average propensity to consume is equal to________ y/c c/y Δc/Δy Δy/Δc None Hint 52. Which of the following is a direct and indirect tax pair? Income Tax - GST Professional Tax - Toll Tax Customs Duty - Income Tax VAT - Property Tax None Hint 53. Supply of a commodity is the ______ offered for sale at a price during a __________ of time. Quantity, period Demand, day Price, quantity Cost, production None Hint 54. 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 False Only (i) True Both True None Hint 55. Which of the following statements are true? Consumption curve touches OY-axis. All the above Value of investment multiplier (k) can never be less than 1. Consumption expenditure can never be zero. None Hint 56. Price discrimination is possible under: None of the above Perfect competition Monopoly Monopolistic competition None Hint 57. What is the median in statistics? The average of all data points The middle value when data is arranged in order The most frequent value The difference between highest and lowest values None Hint 58. Which of the following is a direct tax? Wealth tax Excise duty All of the above Income Tax None Hint 59. Product is homogenous under: Monopolistic competition None of the above Perfect competition Both (A) and (B) None Hint 60. Which of the following equations is correct? mpc + apc = 1 C + I = Y S + I = Y k = 1 / mpc None Hint 61. Two categories of measures to control inflation are __ policy and __ policy. Trade, Tax Fiscal, Monetary Revenue, Capital Import, Export None Hint 62. Measure of value is the _____ function while store of value is the ___________ function of money. Visible; Invisible Basic; Contingent General; Special Primary; Secondary None Hint 63. ‘Inter-dependence’ is the feature of which type of market? Perfect competition Monopoly Oligopoly Monopolistic competition None Hint 64. A supply curve parallel to OY-axis is: perfectly inelastic supply curve perfectly elastic supply curve easily supply curve inelastic supply curve None Hint 65. What does optimum utilization of resources mean? Increasing prices to reduce consumption Using resources as much as possible regardless of cost Using resources to get maximum output at minimum cost Keeping resources unused for future None Hint 66. A supply curve parallel to OY-axis is: inelastic supply curve perfectly inelastic supply curve elastic supply curve perfectly elastic supply curve None Hint 67. Product is homogenous under: Both (A) and (B) None of the above Perfect competition Monopolistic competition None Hint 68. Which of the following is included in National Income? Gifts received from employer None of the above Receipts from sale of old newspapers Sale of old house None Hint 69. ________ 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 70. Which of the following is an assumption of law of supply? Technology and cost of production change frequently Cost of production remains constant Government policy is unpredictable Price and supply move in opposite directions None Hint 71. Supply of a commodity is the ____ offered for sale at a price during a _________ of time. Quantity, Day Quantity, Period Stock, Day Stock, Period None Hint 72. Which correctly matches the functions of money? Store of value - Basic Measure of value - Variable Measure of value - Contingent Measure of value - Basic; Store of value - Contingent None Hint 73. __________ is an example of real flow while ____________ is an example of money flow in an economy. Investment; Capital Income; Employment Production; Consumption Goods and services; Payment of wages None Hint 74. Marginal Propensity to save is equal to: ΔS/ΔY 1 - C/Y 1 - ΔC/ΔY S/Y None Hint 75. Excess demand in a perfectly competitive market occurs __________ the equilibrium price while excess supply occurs _______ the equilibrium price. Above, below Below, at At, above Below, above None Hint 76. Which of the following is a Stock? None of the above Savings Income Wealth None Hint 77. 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 78. Which of the following supply curves have elasticity of supply > 1? Supply curve cutting OY-axis Supply curve cutting OX-axis None of the above Supply curve passing through the origin None Hint 79. 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 80. Fill in the blanks Gross Indirect Tax – Net Indirect Tax = _____________. Expenditure Income Taxes Subsidies None Hint 81. Which of the following equations is correct? Indirect Taxes – Subsidies = Net Indirect Taxes None of the above Direct Taxes + Subsidies = Net Direct Taxes Indirect Taxes – Direct Taxes = Subsidies None Hint 82. Which of the following can cause a rightward shift of the supply curve? Technological improvement Natural disaster Increase in taxes Increase in production cost None Hint 83. Which of the following is a country's National Income? GNP @ f.c NNP @ mp NNP @ f.c NDP @ f.c None Hint 84. Consumption curve: Passes through the origin Cuts OX or OY axis Cuts OX axis Cuts OY axis None Hint 85. Identify correct examples of real and money flow: Money - Goods; Real - Salary Real - Tax; Money - Product Real - Goods and Services; Money - Payment of wages Goods - Wages; Services - Interest None Hint 86. Which of the following is a country’s National Income? NNP at f.c. NNP at m.p. GNP at f.c. NDP at f.c. None Hint 87. When price of a commodity falls, income of the consumer __. Increases Becomes zero Remains constant Decreases None Hint 88. A supply curve parallel to OY-axis is: Perfectly inelastic supply curve Perfectly elastic supply curve Inelastic supply curve Elastic supply curve None Hint 89. A point inside a production possibility curve shows: Change in technique of productions Growth of resources Under utilisation of resources Overutilisation of resources None Hint 90. Supply curve of a commodity is normally: parallel to OY-axis negatively sloped parallel to OX-axis positively sloped None Hint 91. Supply curve of a commodity is normally ________ Negatively sloped Positively sloped Parallel to OY-axis Parallel to OX-axis None Hint 92. 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 93. Which of the following is a country’s National Income? NNP @ f.c GNP @ f.c NDP @ f.c NNP @ mp None Hint 94. Fill in the blanks When price of a commodity falls, ________ income of the consumer ________. Nominal, increases Nominal, decreases Real, increases Real, decreases None Hint 95. ‘Inter-dependence’ is the feature of this type of market: Monopoly Monopolistic competition Oligopoly Perfect competition None Hint 96. Product is homogenous under: Both (A) and (B) Monopolistic competition Perfect competition None of the above None Hint 97. Which of the following can cause a rightward shift in the supply curve? Increase in input prices Technological improvement Decrease in the number of sellers Higher taxes on production None Hint 98. 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 99. When the demand of a good ‘increases’, demand curve: shifts to the left there is no change in demand curve shifts to the right does not shift but there is downward movement along the curve None Hint 100. When price of a commodity falls, _______ income of the consumer __________. Real, Decreases Money, Increases Real, Increases Money, Decreases None Hint 101. Revenue expenditure creates: None of the above Both asset and liability Asset Liability None Hint 102. Which curves are drawn in a diagram showing cost behavior? Average cost and marginal cost Fixed cost and average cost Marginal cost and total variable cost Total cost and total variable cost None Hint 103. 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 false Both are true (i) false, (ii) true None Hint 104. Supply curve of a commodity is normally: parallel to OX-axis parallel to OY-axis positively sloped negatively sloped None Hint 105. What does the Total Cost curve represent? Revenue earned by firm Cost of raw materials only Only variable costs Total fixed cost plus total variable cost None Hint 106. Fill in the blanks: Demand curve parallel to X-axis shows perfectly __________ demand. Elastic Unit elastic Perfectly inelastic Inelastic None Hint 107. Which of these factors causes a rightward shift of supply curve? Technological advancement Increase in taxes Technological deterioration Rise in input prices None Hint 108. 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 109. 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 (i) is false and (ii) is true Both (i) and (ii) are true None Hint 110. Optimum utilisation of resources means: Using resources inefficiently Using resources in the best possible way to maximize output Using resources randomly Wasting resources None Hint 111. Fill in the blanks: Supply of a commodity is the ________ offered for sale at a price during a ___________ of time. Price, interval Demand, point Quantity, period Stock, phase None Hint 112. Value of Investment Multiplier can be equal to: Any of the above Negative Infinity Zero None Hint 113. 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 Increase in demand for B No change in demand for B None Hint 114. None 115. 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 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
