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

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. 200 crores

Rs. 160 crores

Rs. 180 crores

Rs. 240 crores

2 / 15

The GDP deflator is calculated as:

Nominal GDP – Real GDP

(Real GDP / Nominal GDP) × 100

(Nominal GDP / Real GDP) × 100

Real GDP + Nominal GDP

3 / 15

Which of the following is a flow variable?

Stock of capital

National income

Money supply

Population at a given point

4 / 15

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

Sales – Depreciation

Gross Investment – Net Investment

Value of output + Value of intermediate goods

Value of output – Value of intermediate goods

5 / 15

Also See: CBSE Class 12 Scanned Answer Sheet and Re-evaluation 2026: Latest Updates

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

6 / 15

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

Value of final goods

Net exports

Value of intermediate goods

Value added by firms

7 / 15

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

Machinery parts used in assembling a tractor

Flour purchased by a bakery for making bread

Wheat sold by a farmer to a mill

Bread purchased by a household for consumption

8 / 15

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

They are not produced within the domestic territory

They are imported goods

They are not sold in the market

Their value is already included in the value of final goods

9 / 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

Construction of a new highway

Increased education spending

10 / 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 Enemy Class 12 Important Questions & Answers

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

A – 1, B – 2, C – 3, D – 4

11 / 15

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

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + NIT – Subsidies

12 / 15

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

Consumption expenditure

Factor services

Factor payments

Profits

13 / 15

Intermediate goods are always durable in nature.

False

True

14 / 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.

A is true, but R is false.

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

A is false, but R is true.

15 / 15

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

Depreciation

Indirect taxes

Net Factor Income from Abroad (NFIA)

Subsidies

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

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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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