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 goods is classified as a final good?

Bread purchased by a household for consumption

Flour purchased by a bakery for making bread

Machinery parts used in assembling a tractor

Wheat sold by a farmer to a mill

2 / 15

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

True

False

3 / 15

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

Factor services

Profits

Consumption expenditure

Factor payments

4 / 15

Intermediate goods are always durable in nature.

True

False

5 / 15

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

GDPmp + Indirect Taxes – Subsidies

GDPmp – Indirect Taxes + Subsidies

GDPmp – Net Factor Income from Abroad

GDPmp + Depreciation

6 / 15

Also See: Human Capital Formation in India Class 12 Important Questions and Answers

Net Investment is calculated as:

Depreciation – Gross Investment

Gross Investment + Depreciation

Gross Investment + Net Factor Income from Abroad

Gross Investment – Depreciation

7 / 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

Wealth, development

Output, production

Value added, production

8 / 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 true, but R is false.

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.

9 / 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. 180 crores

Rs. 160 crores

Rs. 240 crores

10 / 15

Which of the following is a flow variable?

Money supply

Population at a given point

Stock of capital

National income

11 / 15

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

flow, stock

stock, stock

stock, flow

flow, flow

12 / 15

The GDP deflator is calculated as:

(Nominal GDP / Real GDP) × 100

Real GDP + Nominal GDP

(Real GDP / Nominal GDP) × 100

Nominal GDP – Real GDP

13 / 15

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

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

Net exports

Value of intermediate goods

Value of final goods

Value added by firms

14 / 15

Real GDP is different from Nominal GDP because it:

Is measured at current prices

Includes inflation effects

Is adjusted for price changes using constant prices

Excludes net exports

15 / 15

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

Subtracting net factor income from abroad

Adding corporate taxes

Adding transfer payments

Subtracting personal taxes and non-tax payments

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

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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