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

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 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.

2 / 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

3 / 15

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

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + Net Investment – Exports

4 / 15

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

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GDP > GNP

GDP = GNP

GDP < GNP

GDP + GNP = 0

5 / 15

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

Depreciation

Subsidies

Indirect taxes

Net Factor Income from Abroad (NFIA)

6 / 15

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

flow, flow

flow, stock

stock, flow

stock, stock

7 / 15

Which of the following is a flow variable?

Money supply

National income

Population at a given point

Stock of capital

8 / 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 – 1, C – 2, D – 4

A – 1, B – 3, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 4, D – 2

9 / 15

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

Wheat sold by a farmer to a mill

Bread purchased by a household for consumption

Flour purchased by a bakery for making bread

Machinery parts used in assembling a tractor

10 / 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. 160 crores

Rs. 200 crores

Rs. 240 crores

Rs. 180 crores

11 / 15

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

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Real flow

Capital flow

Circular flow

Monetary flow

12 / 15

Net Investment is calculated as:

Gross Investment + Net Factor Income from Abroad

Gross Investment + Depreciation

Depreciation – Gross Investment

Gross Investment – Depreciation

13 / 15

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

Pollution from a factory reducing fishermen’s income

Construction of a new highway

Exports increasing national income

Increased education spending

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 – 1, B – 2, C – 3, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

15 / 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

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are true

Statement 1 is true and statement 2 is false

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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