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

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

Factor services

Consumption expenditure

Factor payments

Profits

2 / 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

A – 3, B – 2, C – 4, D – 1

A – 1, B – 2, C – 3, D – 4

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

3 / 15

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

Construction of a new highway

Exports increasing national income

Increased education spending

Pollution from a factory reducing fishermen’s income

4 / 15

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

Also See: Indian Economy 1950-1990 Class 12 MCQ Quiz – Test Your Knowledge!

A is true, but R is false.

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

A is false, but R is true.

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

5 / 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.

6 / 15

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

Value of final goods

Value added by firms

Value of intermediate goods

Net exports

7 / 15

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

True

False

8 / 15

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

Subtracting net factor income from abroad

Adding transfer payments

Adding corporate taxes

Subtracting personal taxes and non-tax payments

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 – 1, B – 3, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 4, D – 2

A – 3, B – 1, C – 2, D – 4

10 / 15

Also See: CBSE Class 12 Accountancy Topper Answer Sheet 2025 (PDF) + Marking Scheme

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

national income class 12 important questions answers

Output, production

Output, disposition

Value added, production

Wealth, development

11 / 15

Net Investment is calculated as:

Gross Investment – Depreciation

Depreciation – Gross Investment

Gross Investment + Net Factor Income from Abroad

Gross Investment + Depreciation

12 / 15

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

flow, flow

stock, flow

stock, stock

flow, stock

13 / 15

The GDP deflator is calculated as:

(Nominal GDP / Real GDP) × 100

Nominal GDP – Real GDP

(Real GDP / Nominal GDP) × 100

Real GDP + Nominal GDP

14 / 15

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

GDPmp – Net Factor Income from Abroad

GDPmp – Indirect Taxes + Subsidies

GDPmp + Depreciation

GDPmp + Indirect Taxes – Subsidies

15 / 15

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

Value of output + Value of intermediate goods

Gross Investment – Net Investment

Value of output – Value of intermediate goods

Sales – Depreciation

Your score is

The average score is 78%

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	Habeeb	93 %	2 minutes 28 seconds	14
4	Chaavi	93 %	2 minutes 32 seconds	14
5	Habeeb	93 %	3 minutes 19 seconds	14
6	haasini	87 %	1 minutes 49 seconds	13
7	AP	87 %	4 minutes 10 seconds	13
8	MAHADEV	87 %	6 minutes 53 seconds	13
9	Payal	80 %	4 minutes 3 seconds	12
10	Bhaw a	80 %	5 minutes 3 seconds	12
11	Prisha	73 %	4 minutes 22 seconds	11
12	Diti	67 %	6 minutes 13 seconds	10
13	hi	60 %	6 minutes 49 seconds	9
14	haasini	53 %	5 minutes 57 seconds	8
15	Tushar kumar	53 %	34 minutes 37 seconds	8
16	archita	40 %	4 minutes 3 seconds	6

Also See: Employment: Growth, Informalization and Other Issues Class 12 Notes

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!