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

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

Circular flow

Real flow

Monetary flow

Capital flow

2 / 15

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

False

True

3 / 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

Sales – Depreciation

Gross Investment – Net Investment

4 / 15

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

Value of intermediate goods

Net exports

Value of final goods

Value added by firms

5 / 15

Also See: CBSE Class 12 Maths Syllabus 2026-27: Download PDF & Full Exam Pattern

Assertion (A): Net Investment equals Gross Investment minus Depreciation.
Reason (R): Depreciation represents the increase in the stock of capital goods over time.

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.

A is true, but R is false.

6 / 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 – 3, B – 1, C – 4, D – 2

A – 1, B – 3, C – 2, D – 4

7 / 15

The GDP deflator is calculated as:

(Nominal GDP / Real GDP) × 100

Nominal GDP – Real GDP

Real GDP + Nominal GDP

(Real GDP / Nominal GDP) × 100

8 / 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

9 / 15

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

GDP > GNP

GDP + GNP = 0

GDP = GNP

GDP < GNP

10 / 15

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

Also See: CBSE Date Sheet 2027 Released for Classes 10 and 12: Download PDF, Exam Dates & Subject-Wise Timetable

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + GDCF + Net Exports

11 / 15

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

Depreciation

Net Factor Income from Abroad (NFIA)

Subsidies

Indirect taxes

12 / 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

13 / 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 – 2, C – 4, D – 1

A – 3, B – 1, C – 2, D – 4

14 / 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:

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are true

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are false

15 / 15

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

Also See: Lost Spring Class 12 English MCQs – Test Your Knowledge!

Pollution from a factory reducing fishermen’s income

Exports increasing national income

Increased education spending

Construction of a new highway

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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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