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

Construction of a new highway

Pollution from a factory reducing fishermen’s income

Exports increasing national income

Increased education spending

2 / 15

Intermediate goods are always durable in nature.

True

False

3 / 15

Which of the following is a flow variable?

Stock of capital

Money supply

Population at a given point

National income

4 / 15

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

Mixed income of self-employed

Indirect taxes

Operating surplus

Compensation of employees

5 / 15

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

Value of intermediate goods

Net exports

Value added by firms

Value of final goods

6 / 15

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

Also See: Indigo Class 12 MCQ Quiz – Test Your Knowledge!

GDPmp + Depreciation

GDPmp – Net Factor Income from Abroad

GDPmp + Indirect Taxes – Subsidies

GDPmp – Indirect Taxes + Subsidies

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

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

A is false, but R is true.

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

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

9 / 15

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

flow, stock

stock, stock

flow, flow

stock, flow

10 / 15

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

True

False

11 / 15

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

Circular flow

Real flow

Capital flow

Monetary flow

12 / 15

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

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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

13 / 15

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

GDP + GNP = 0

GDP = GNP

GDP > GNP

GDP < GNP

14 / 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 – 1, B – 2, C – 3, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 4, D – 1

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, disposition

Output, production

Value added, production

Wealth, development

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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