National Income Accounting Class 12 MCQ Quiz – Test Your Understanding!

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Are you ready to test your knowledge of National Income Accounting from the Class 12 Economics syllabus? This chapter is crucial for understanding how a country measures its economic performance through GDP, GNP, NNP, and other national income aggregates.

About the Quiz

Chapter Name: National Income Accounting
Subject: Economics
Book: NCERT Class 12 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Helps in CBSE board exam revision
✔ Strengthens understanding of GDP, NDP, GNP, NNP, and per capita income
✔ Enhances problem-solving and calculation skills
✔ Track your progress with the leaderboard

Click Below to Start the Quiz!

Chapter 1-National Income Accounting

1 / 15

Match the Concept with its Example or Characteristic:

Column A	Column B
A. Flow Variable	1. Stock of capital at a point in time
B. Stock Variable	2. Bread consumed by a household
C. Final Good	3. National income over a year
D. Operating Surplus	4. Rent + Interest + Profits

A – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

A – 3, B – 1, C – 2, D – 4

2 / 15

Personal Disposable Income (PDI) is derived from Personal Income (PI) by:

Adding corporate taxes

Subtracting net factor income from abroad

Subtracting personal taxes and non-tax payments

Adding transfer payments

3 / 15

In the value-added method, the value added by a firm is calculated as:

Gross Investment – Net Investment

Value of output – Value of intermediate goods

Sales – Depreciation

Value of output + Value of intermediate goods

4 / 15

Also See: CBSE Class 12 English Previous Year Question Papers with Answers PDF Download

Real GDP is different from Nominal GDP because it:

Is measured at current prices

Is adjusted for price changes using constant prices

Excludes net exports

Includes inflation effects

5 / 15

Which of the following is an example of a negative externality affecting GDP and welfare?

Pollution from a factory reducing fishermen’s income

Construction of a new highway

Exports increasing national income

Increased education spending

6 / 15

Assertion (A): GDP may overestimate welfare if negative externalities like pollution are ignored.
Reason (R): GDP includes non-monetary transactions and barter exchanges.

Both A and R are true, and R is the correct explanation of A.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

A is false, but R is true.

7 / 15

Which of the following is NOT a component of Net Domestic Product at Factor Cost (NDPfc) under the income method?

Operating surplus

Compensation of employees

Mixed income of self-employed

Indirect taxes

8 / 15

If in an economy the value of Net Factor Income from Abroad is Rs. 200 crores and the value of Factor Income to Abroad is Rs. 40 crores. Identify the value of Factor Income from Abroad.

Rs. 180 crores

Rs. 240 crores

Rs. 200 crores

Rs. 160 crores

9 / 15

Flow of Goods & services and factors of production across different sectors in a barter economy is known as _____.

Capital flow

Circular flow

Real flow

Monetary flow

10 / 15

Read the following figure carefully and choose the correct pair from the alternatives given below:

Also See: Deep Water Class 12 Important Questions and Answers

national income class 12 important questions answers

Wealth, development

Value added, production

Output, disposition

Output, production

11 / 15

Net Investment is calculated as:

Gross Investment + Depreciation

Gross Investment + Net Factor Income from Abroad

Depreciation – Gross Investment

Gross Investment – Depreciation

12 / 15

Inventory is a _____ concept whereas the change in inventory is a _____ concept.

stock, flow

flow, stock

stock, stock

flow, flow

13 / 15

Read the following statements carefully:

Statement 1 – Net investment is a stock concept.

Statement 2 – Capital is a flow concept.

In the light of the given statements, choose the correct alternative from the following:

Both statements 1 and 2 are false

Statement 1 is true and statement 2 is false

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are true

14 / 15

The GDP deflator is calculated as:

Nominal GDP – Real GDP

(Nominal GDP / Real GDP) × 100

(Real GDP / Nominal GDP) × 100

Real GDP + Nominal GDP

15 / 15

Which of the following is a flow variable?

Money supply

Population at a given point

National income

Stock of capital

Your score is

The average score is 76%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Pp	100 %	1 minutes 14 seconds	15
2	Bhawna	100 %	3 minutes 40 seconds	15
3	Chaavi	93 %	2 minutes 32 seconds	14
4	haasini	87 %	1 minutes 49 seconds	13
5	AP	87 %	4 minutes 10 seconds	13
6	MAHADEV	87 %	6 minutes 53 seconds	13
7	Payal	80 %	4 minutes 3 seconds	12
8	Bhaw a	80 %	5 minutes 3 seconds	12
9	Prisha	73 %	4 minutes 22 seconds	11
10	Diti	67 %	6 minutes 13 seconds	10
11	hi	60 %	6 minutes 49 seconds	9
12	haasini	53 %	5 minutes 57 seconds	8
13	Tushar kumar	53 %	34 minutes 37 seconds	8
14	archita	40 %	4 minutes 3 seconds	6

Also See: Class 12 Economics: Liberalization, Privatization, and Globalization Notes and Study Material

Key Topics Covered in the Quiz

✔ Concepts of GDP, GNP, NNP, NDP
✔ Factor cost vs. market price
✔ Methods of national income calculation (Income, Product, Expenditure)
✔ Real vs. Nominal GDP
✔ Limitations of GDP as a growth measure

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