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

Which of the following should be excluded while calculating national income to avoid double counting?

Net exports

Value added by firms

Value of intermediate goods

Value of final goods

2 / 15

Assertion (A): Net Investment equals Gross Investment minus Depreciation.
Reason (R): Depreciation represents the increase in the stock of capital goods over time.

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

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

A is true, but R is false.

A is false, but R is true.

3 / 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

4 / 15

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

Also See: The Rattrap Class 12 MCQ Quiz – Test Your Understanding!

Indirect taxes

Mixed income of self-employed

Operating surplus

Compensation of employees

5 / 15

In the circular flow of income in a two-sector economy, what flows from households to firms?

Factor payments

Profits

Factor services

Consumption expenditure

6 / 15

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

Adding transfer payments

Subtracting net factor income from abroad

Adding corporate taxes

Subtracting personal taxes and non-tax payments

7 / 15

Which of the following goods is classified as a final good?

Flour purchased by a bakery for making bread

Wheat sold by a farmer to a mill

Machinery parts used in assembling a tractor

Bread purchased by a household for consumption

8 / 15

Intermediate goods are always durable in nature.

True

False

9 / 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 – 3, B – 1, C – 4, D – 2

A – 3, B – 1, C – 2, D – 4

A – 1, B – 3, C – 2, D – 4

10 / 15

Why are intermediate goods excluded from the calculation of national income?

They are not sold in the market

They are not produced within the domestic territory

Their value is already included in the value of final goods

They are imported goods

11 / 15

Match the Income Aggregate with its Adjustment:

Column A	Column B
A. GDPmp to GDPfc	1. Subtract personal taxes and non-tax payments
B. GNPmp to NNPmp	2. Subtract depreciation
C. PI to PDI	3. Subtract indirect taxes + Add subsidies
D. NDPfc to NNPfc	4. Add Net Factor Income from Abroad

Also See: The Last Lesson MCQs | Class 12 English Chapter 1 Quiz with Answers

A – 1, B – 2, C – 3, D – 4

A – 3, B – 2, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

12 / 15

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

national income class 12 important questions answers

Output, disposition

Output, production

Value added, production

Wealth, development

13 / 15

The formula for converting GDP at market price (GDPmp) to GDP at factor cost (GDPfc) is:

GDPmp + Depreciation

GDPmp – Indirect Taxes + Subsidies

GDPmp + Indirect Taxes – Subsidies

GDPmp – Net Factor Income from Abroad

14 / 15

Gross Value Added at market price and Gross Domestic Product at market price are one and the same thing.

True

False

15 / 15

Which of the following is a flow variable?

Stock of capital

National income

Money supply

Population at a given point

Your score is

The average score is 72%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	Pp	100 %	1 minutes 14 seconds	15
2	haasini	87 %	1 minutes 49 seconds	13
3	AP	87 %	4 minutes 10 seconds	13
4	MAHADEV	87 %	6 minutes 53 seconds	13
5	Payal	80 %	4 minutes 3 seconds	12
6	hi	60 %	6 minutes 49 seconds	9
7	haasini	53 %	5 minutes 57 seconds	8
8	Tushar kumar	53 %	34 minutes 37 seconds	8
9	archita	40 %	4 minutes 3 seconds	6

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

Also See: CBSE Class 12 English Important Questions & Answers

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