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

WhatsApp Group Join Now

Telegram Group Join Now

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

Exports increasing national income

Pollution from a factory reducing fishermen’s income

Increased education spending

Construction of a new highway

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.

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.

A is false, but R is true.

3 / 15

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

Flour purchased by a bakery for making bread

Bread purchased by a household for consumption

Wheat sold by a farmer to a mill

Machinery parts used in assembling a tractor

4 / 15

Intermediate goods are always durable in nature.

True

False

5 / 15

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

Capital flow

Real flow

Monetary flow

Circular flow

6 / 15

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

Value of output + Value of intermediate goods

Sales – Depreciation

Gross Investment – Net Investment

Value of output – Value of intermediate goods

7 / 15

Also See: CBSE Class 12 Economics Syllabus 2025-26: Download PDF & Full Exam Pattern

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:

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are true

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are false

8 / 15

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

GDP > GNP

GDP = GNP

GDP + GNP = 0

GDP < GNP

9 / 15

Net Investment is calculated as:

Gross Investment + Depreciation

Gross Investment + Net Factor Income from Abroad

Gross Investment – Depreciation

Depreciation – Gross Investment

10 / 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 – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

A – 3, B – 2, C – 1, D – 4

11 / 15

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

A is false, but R is true.

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.

12 / 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: Comparative Development Experiences of India and its Neighbours Simplified Class 12 Questions & Answers

A – 3, B – 2, C – 1, D – 4

A – 1, B – 2, C – 3, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 4, D – 1

13 / 15

Real GDP is different from Nominal GDP because it:

Includes inflation effects

Is adjusted for price changes using constant prices

Excludes net exports

Is measured at current prices

14 / 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

Indirect taxes

Mixed income of self-employed

15 / 15

In the expenditure method, GDP at market price (GDPmp) is calculated as:

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + GDCF + Net Exports

Your score is

The average score is 73%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Triman	100 %	1 minutes 54 seconds	15
2	hema	100 %	3 minutes 26 seconds	15
3	Ankita	100 %	5 minutes 9 seconds	15
4	Aaditya	100 %	5 minutes 31 seconds	15
5	Naman	100 %	8 minutes 36 seconds	15
6	Hazel	93 %	1 minutes 40 seconds	14
7	banana	93 %	2 minutes 23 seconds	14
8	Somya	93 %	2 minutes 36 seconds	14
9	Rish	93 %	2 minutes 40 seconds	14
10	Gazal	93 %	3 minutes 5 seconds	14
11	mani	93 %	3 minutes 12 seconds	14
12	R	93 %	3 minutes 18 seconds	14
13	Triman	93 %	3 minutes 47 seconds	14
14	harshit pandey	93 %	4 minutes 35 seconds	14
15	S	93 %	5 minutes 9 seconds	14
16	BHAU	93 %	5 minutes 13 seconds	14
17	youvikaa	87 %	2 minutes 40 seconds	13
18	Annie	87 %	3 minutes 13 seconds	13
19	gazal	87 %	6 minutes 5 seconds	13
20	Priya	80 %	3 minutes 2 seconds	12
21	Triman	80 %	3 minutes 30 seconds	12
22	Priya	80 %	5 minutes 17 seconds	12
23	Triman	80 %	5 minutes 49 seconds	12
24	p	80 %	6 minutes 6 seconds	12
25	..	73 %	3 minutes 14 seconds	11
26	Sandhya	73 %	6 minutes 13 seconds	11
27	harshit pandey	73 %	6 minutes 45 seconds	11
28	Devashree	73 %	7 minutes 21 seconds	11
29	Rajeev Singh	73 %	12 minutes 12 seconds	11
30	Tanvi Shrivastava	67 %	4 minutes 50 seconds	10
31	Nagamani M	67 %	7 minutes 45 seconds	10
32	Souty	67 %	11 minutes 8 seconds	10
33	Om	60 %	2 minutes 25 seconds	9
34	Hhhkk	60 %	2 minutes 55 seconds	9
35	Adeeb	60 %	7 minutes 53 seconds	9
36	arun	60 %	9 minutes 53 seconds	9
37	Raj	53 %	1 minutes 38 seconds	8
38	Rajeev Singh	53 %	6 minutes 16 seconds	8
39	kanu	53 %	7 minutes 52 seconds	8
40	manikandan playboy	53 %	10 minutes 26 seconds	8
41	shiv	53 %	11 minutes 10 seconds	8
42	M	47 %	6 minutes 22 seconds	7
43	Suchitha	40 %	1 minutes 2 seconds	6
44	Prince	40 %	3 minutes 47 seconds	6
45	Abc	40 %	8 minutes	6
46	rakes	40 %	11 minutes 25 seconds	6
47	Ahzyzjsj	20 %	2 minutes 2 seconds	3
48	virat	13 %	8 minutes 48 seconds	2

Also See: Going Places Class 12: Important Questions and Answers

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

More Class 12 Economics MCQ Quizzes

Take the quiz now and ace your CBSE Class 12 Economics exam!