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

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

Profits

Factor payments

Factor services

Consumption expenditure

2 / 15

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

Flour purchased by a bakery for making bread

Machinery parts used in assembling a tractor

Wheat sold by a farmer to a mill

Bread purchased by a household for consumption

3 / 15

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

They are not sold in the market

Their value is already included in the value of final goods

They are imported goods

They are not produced within the domestic territory

4 / 15

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

Net Factor Income from Abroad (NFIA)

Depreciation

Indirect taxes

Subsidies

5 / 15

Net Investment is calculated as:

Gross Investment + Depreciation

Gross Investment – Depreciation

Depreciation – Gross Investment

Gross Investment + Net Factor Income from Abroad

6 / 15

Also See: Environment and Sustainable Development Class 12: Questions and Answers for Exam Success

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

Value added by firms

Value of intermediate goods

Value of final goods

Net exports

7 / 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 – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

8 / 15

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

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + Depreciation + NFIA

9 / 15

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

GDPmp – Net Factor Income from Abroad

GDPmp + Depreciation

GDPmp – Indirect Taxes + Subsidies

GDPmp + Indirect Taxes – Subsidies

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, but R is not the correct explanation of A.

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

11 / 15

Read the following statements carefully:

Statement 1 – Net investment is a stock concept.

Also See: Comparative Development Experiences of India and its Neighbours Simplified Class 12 Questions & Answers

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 true

Statement 1 is false and statement 2 is true

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are false

12 / 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 – 4, D – 1

A – 1, B – 2, C – 3, D – 4

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

13 / 15

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

flow, stock

flow, flow

stock, flow

stock, stock

14 / 15

Intermediate goods are always durable in nature.

True

False

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

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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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