National Income Accounting Class 12 MCQ Quiz – Test Your Understanding!

WhatsApp Group Join Now

Telegram Group Join Now

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

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 true

Statement 1 is true and statement 2 is false

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are false

2 / 15

Net Investment is calculated as:

Depreciation – Gross Investment

Gross Investment – Depreciation

Gross Investment + Depreciation

Gross Investment + Net Factor Income from Abroad

3 / 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

Also See: Class 12 English 2023 Topper's Answers Sheet (Must See 2025 Students)

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

4 / 15

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

Value of intermediate goods

Value of final goods

Net exports

Value added by firms

5 / 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

6 / 15

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

Increased education spending

Pollution from a factory reducing fishermen’s income

Construction of a new highway

Exports increasing national income

7 / 15

Which of the following is a flow variable?

Population at a given point

National income

Money supply

Stock of capital

8 / 15

Assertion (A): GDP may overestimate welfare if negative externalities like pollution are ignored.
Reason (R): GDP includes non-monetary transactions and barter exchanges.

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

A is true, but R is false.

A is false, but R is true.

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

9 / 15

Real GDP is different from Nominal GDP because it:

Is adjusted for price changes using constant prices

Includes inflation effects

Is measured at current prices

Excludes net exports

10 / 15

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

Sales – Depreciation

Gross Investment – Net Investment

Value of output – Value of intermediate goods

Value of output + Value of intermediate goods

11 / 15

Also See: A Roadside Stand: Important Questions and Answers for Class 12

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.

12 / 15

The GDP deflator is calculated as:

Real GDP + Nominal GDP

(Real GDP / Nominal GDP) × 100

Nominal GDP – Real GDP

(Nominal GDP / Real GDP) × 100

13 / 15

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

GDPmp – Indirect Taxes + Subsidies

GDPmp + Indirect Taxes – Subsidies

GDPmp + Depreciation

GDPmp – Net Factor Income from Abroad

14 / 15

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

stock, flow

stock, stock

flow, stock

flow, flow

15 / 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

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 English Sample Paper 2023-24 with Solutions

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

More Class 12 Economics MCQ Quizzes

Take the quiz now and ace your CBSE Class 12 Economics exam!