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. 180 crores

Rs. 240 crores

Rs. 160 crores

2 / 15

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

Bread purchased by a household for consumption

Machinery parts used in assembling a tractor

Wheat sold by a farmer to a mill

Flour purchased by a bakery for making bread

3 / 15

Which of the following is a flow variable?

Stock of capital

Money supply

National income

Population at a given point

4 / 15

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

Subtracting net factor income from abroad

Adding transfer payments

Subtracting personal taxes and non-tax payments

Adding corporate taxes

5 / 15

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

Also See: Money and Banking: Class 12 Notes Everything You Need to Know

Circular flow

Capital flow

Real flow

Monetary flow

6 / 15

Net Investment is calculated as:

Gross Investment + Depreciation

Gross Investment + Net Factor Income from Abroad

Depreciation – Gross Investment

Gross Investment – Depreciation

7 / 15

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

Value of output – Value of intermediate goods

Value of output + Value of intermediate goods

Gross Investment – Net Investment

Sales – Depreciation

8 / 15

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:

Both statements 1 and 2 are false

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are true

Statement 1 is true and statement 2 is false

9 / 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.

10 / 15

The GDP deflator is calculated as:

(Nominal GDP / Real GDP) × 100

Real GDP + Nominal GDP

Nominal GDP – Real GDP

(Real GDP / Nominal GDP) × 100

11 / 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

Also See: The Tiger King Class 12 MCQ Quiz – Test Your Knowledge!

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

A – 1, B – 3, C – 2, D – 4

12 / 15

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

They are not produced within the domestic territory

Their value is already included in the value of final goods

They are not sold in the market

They are imported goods

13 / 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.

14 / 15

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

Factor payments

Factor services

Consumption expenditure

Profits

15 / 15

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

Wealth, development

Value added, production

Your score is

The average score is 77%

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

Also See: On the Face of It: Key Questions and Answers for Class 12 English

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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