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

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

Indirect taxes

Net Factor Income from Abroad (NFIA)

Subsidies

Depreciation

2 / 15

Which of the following is a flow variable?

National income

Population at a given point

Stock of capital

Money supply

3 / 15

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

True

False

4 / 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 – 1, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 4, D – 1

A – 1, B – 2, C – 3, D – 4

5 / 15

Also See: Environment and Sustainable Development Class 12 MCQ Quiz – Test Your Understanding!

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

Subtracting net factor income from abroad

Subtracting personal taxes and non-tax payments

Adding transfer payments

Adding corporate taxes

6 / 15

Real GDP is different from Nominal GDP because it:

Excludes net exports

Is adjusted for price changes using constant prices

Is measured at current prices

Includes inflation effects

7 / 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.

8 / 15

For a closed economy (with no foreign trade), which one of the following is correct?

GDP > GNP

GDP < GNP

GDP + GNP = 0

GDP = GNP

9 / 15

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

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + GDCF + Net Exports

10 / 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, and R is the correct explanation of A.

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

11 / 15

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

Wheat sold by a farmer to a mill

Flour purchased by a bakery for making bread

Bread purchased by a household for consumption

Machinery parts used in assembling a tractor

12 / 15

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

Intermediate goods are always durable in nature.

True

False

13 / 15

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

flow, stock

stock, flow

flow, flow

stock, stock

14 / 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 – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

A – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

15 / 15

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

They are not produced within the domestic territory

They are not sold in the market

They are imported goods

Their value is already included in the value of final goods

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: CBSE Class 12 Geography Syllabus 2026-27: Download PDF & Full Exam Pattern

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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