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

Real GDP is different from Nominal GDP because it:

Excludes net exports

Includes inflation effects

Is adjusted for price changes using constant prices

Is measured at current prices

2 / 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 – 2, D – 4

A – 3, B – 1, C – 4, D – 2

3 / 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

Bread purchased by a household for consumption

Machinery parts used in assembling a tractor

4 / 15

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

flow, flow

stock, flow

flow, stock

stock, stock

5 / 15

Gross National Product (GNP) differs from Gross Domestic Product (GDP) because it includes:

Indirect taxes

Depreciation

Subsidies

Net Factor Income from Abroad (NFIA)

6 / 15

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

GDPmp + Indirect Taxes – Subsidies

GDPmp – Net Factor Income from Abroad

GDPmp + Depreciation

GDPmp – Indirect Taxes + Subsidies

7 / 15

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For a closed economy (with no foreign trade), which one of the following is correct?

GDP = GNP

GDP < GNP

GDP + GNP = 0

GDP > GNP

8 / 15

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

Subtracting net factor income from abroad

Subtracting personal taxes and non-tax payments

Adding transfer payments

Adding corporate taxes

9 / 15

Net Investment is calculated as:

Gross Investment – Depreciation

Depreciation – Gross Investment

Gross Investment + Net Factor Income from Abroad

Gross Investment + Depreciation

10 / 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, 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.

11 / 15

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

Increased education spending

Pollution from a factory reducing fishermen’s income

Construction of a new highway

Exports increasing national income

12 / 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. 240 crores

Rs. 180 crores

Rs. 160 crores

Rs. 200 crores

13 / 15

Intermediate goods are always durable in nature.

False

True

14 / 15

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

A is false, but R is true.

A is true, but R is false.

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.

15 / 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: Say Goodbye to Guesswork: Master Class 12 English with Sample Paper PDF

A – 3, B – 1, C – 2, D – 4

A – 1, B – 2, C – 3, D – 4

A – 3, B – 2, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

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The average score is 72%

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1	~himanshu	100 %	46 seconds	15
2	Triman	100 %	1 minutes 54 seconds	15
3	hema	100 %	3 minutes 26 seconds	15
4	Ankita	100 %	5 minutes 9 seconds	15
5	Aaditya	100 %	5 minutes 31 seconds	15
6	Kiya	100 %	7 minutes 42 seconds	15
7	Naman	100 %	8 minutes 36 seconds	15
8	~himanshu	93 %	40 seconds	14
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10	banana	93 %	2 minutes 23 seconds	14
11	Somya	93 %	2 minutes 36 seconds	14
12	Rish	93 %	2 minutes 40 seconds	14
13	Gazal	93 %	3 minutes 5 seconds	14
14	mani	93 %	3 minutes 12 seconds	14
15	R	93 %	3 minutes 18 seconds	14
16	Triman	93 %	3 minutes 47 seconds	14
17	harshit pandey	93 %	4 minutes 35 seconds	14
18	S	93 %	5 minutes 9 seconds	14
19	BHAU	93 %	5 minutes 13 seconds	14
20	Chasing	93 %	5 minutes 34 seconds	14
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22	youvikaa	87 %	2 minutes 40 seconds	13
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24	gazal	87 %	6 minutes 5 seconds	13
25	palak khetan	87 %	8 minutes 10 seconds	13
26	Priya	80 %	3 minutes 2 seconds	12
27	Triman	80 %	3 minutes 30 seconds	12
28	Priya	80 %	5 minutes 17 seconds	12
29	Triman	80 %	5 minutes 49 seconds	12
30	p	80 %	6 minutes 6 seconds	12
31	Shivanshi	80 %	7 minutes 33 seconds	12
32	Sunny Leo Ne kya kiya	73 %	43 seconds	11
33	~himanshu	73 %	1 minutes 6 seconds	11
34	..	73 %	3 minutes 14 seconds	11
35	Sandhya	73 %	6 minutes 13 seconds	11
36	harshit pandey	73 %	6 minutes 45 seconds	11
37	Devashree	73 %	7 minutes 21 seconds	11
38	Rajeev Singh	73 %	12 minutes 12 seconds	11
39	Tanvi Shrivastava	67 %	4 minutes 50 seconds	10
40	Nagamani M	67 %	7 minutes 45 seconds	10
41	Niharika	67 %	8 minutes 55 seconds	10
42	Souty	67 %	11 minutes 8 seconds	10
43	Om	60 %	2 minutes 25 seconds	9
44	Hhhkk	60 %	2 minutes 55 seconds	9
45	~himanshu	60 %	3 minutes 41 seconds	9
46	Yashoshree	60 %	4 minutes 9 seconds	9
47	Adeeb	60 %	7 minutes 53 seconds	9
48	shirly	60 %	8 minutes 11 seconds	9
49	arun	60 %	9 minutes 53 seconds	9
50	Raj	53 %	1 minutes 38 seconds	8
51	Rajeev Singh	53 %	6 minutes 16 seconds	8
52	kanu	53 %	7 minutes 52 seconds	8
53	manikandan playboy	53 %	10 minutes 26 seconds	8
54	shiv	53 %	11 minutes 10 seconds	8
55	M	47 %	6 minutes 22 seconds	7
56	Suchitha	40 %	1 minutes 2 seconds	6
57	Prince	40 %	3 minutes 47 seconds	6
58	Abc	40 %	8 minutes	6
59	rakes	40 %	11 minutes 25 seconds	6
60	~terabaapaaya	27 %	33 seconds	4
61	Ahzyzjsj	20 %	2 minutes 2 seconds	3
62	virat	13 %	8 minutes 48 seconds	2
63	tr	0 %	49 seconds	0

Also See: Important Questions and Answers on Determination of Income and Employment for Class 12 CBSE Board Exam

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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