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

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.

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

A is false, but R is true.

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

2 / 15

Which of the following is NOT a component of Net Domestic Product at Factor Cost (NDPfc) under the income method?

Compensation of employees

Operating surplus

Indirect taxes

Mixed income of self-employed

3 / 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. 240 crores

Rs. 180 crores

4 / 15

Also See: Half-Yearly Exams vs Pre-Boards – What’s the Difference & What Matters More?

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

national income class 12 important questions answers

Output, production

Value added, production

Output, disposition

Wealth, development

5 / 15

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

Machinery parts used in assembling a tractor

Wheat sold by a farmer to a mill

Flour purchased by a bakery for making bread

Bread purchased by a household for consumption

6 / 15

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

flow, stock

stock, stock

flow, flow

stock, flow

7 / 15

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

Pollution from a factory reducing fishermen’s income

Exports increasing national income

Increased education spending

Construction of a new highway

8 / 15

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

Gross Investment – Net Investment

Value of output + Value of intermediate goods

Sales – Depreciation

Value of output – Value of intermediate goods

9 / 15

The GDP deflator is calculated as:

Real GDP + Nominal GDP

Nominal GDP – Real GDP

(Nominal GDP / Real GDP) × 100

(Real GDP / Nominal GDP) × 100

10 / 15

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

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + GDCF + Net Exports

11 / 15

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

Indirect taxes

Depreciation

Subsidies

Net Factor Income from Abroad (NFIA)

12 / 15

Also See: Aunt Jennifer's Tigers: Class 12 Questions and Answers Made Easy

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

Value added by firms

Net exports

Value of intermediate goods

Value of final goods

13 / 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 false, but R is true.

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.

14 / 15

Intermediate goods are always durable in nature.

False

True

15 / 15

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

Factor services

Consumption expenditure

Profits

Factor payments

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The average score is 72%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	Pp	100 %	1 minutes 14 seconds	15
2	haasini	87 %	1 minutes 49 seconds	13
3	AP	87 %	4 minutes 10 seconds	13
4	MAHADEV	87 %	6 minutes 53 seconds	13
5	Payal	80 %	4 minutes 3 seconds	12
6	hi	60 %	6 minutes 49 seconds	9
7	haasini	53 %	5 minutes 57 seconds	8
8	Tushar kumar	53 %	34 minutes 37 seconds	8
9	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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Take the quiz now and ace your CBSE Class 12 Economics exam!