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

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

GDP > GNP

GDP < GNP

GDP + GNP = 0

GDP = GNP

2 / 15

The GDP deflator is calculated as:

Real GDP + Nominal GDP

Nominal GDP – Real GDP

(Nominal GDP / Real GDP) × 100

(Real GDP / Nominal GDP) × 100

3 / 15

Real GDP is different from Nominal GDP because it:

Excludes net exports

Is measured at current prices

Is adjusted for price changes using constant prices

Includes inflation effects

4 / 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 – 2, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

5 / 15

Also See: CBSE Class 12 English Important Questions & Answers

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

True

False

6 / 15

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

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + GDCF + Net Exports

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.

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

A is false, but R is true.

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

A is true, but R is false.

8 / 15

Intermediate goods are always durable in nature.

False

True

9 / 15

Net Investment is calculated as:

Gross Investment + Net Factor Income from Abroad

Gross Investment + Depreciation

Depreciation – Gross Investment

Gross Investment – Depreciation

10 / 15

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

Value of intermediate goods

Value added by firms

Value of final goods

Net exports

11 / 15

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

Net Factor Income from Abroad (NFIA)

Indirect taxes

Subsidies

Depreciation

12 / 15

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

Value of output – Value of intermediate goods

Sales – Depreciation

Gross Investment – Net Investment

Value of output + Value of intermediate goods

13 / 15

Also See: CBSE Class 12 English Sample Paper 2023-24 with Solutions

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 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.

A is false, but R is true.

14 / 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 – 2, C – 1, D – 4

A – 3, B – 1, C – 4, D – 2

A – 3, B – 1, C – 2, 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:

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are false

Both statements 1 and 2 are true

Statement 1 is false and statement 2 is true

Your score is

The average score is 76%

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	haasini	87 %	1 minutes 49 seconds	13
5	AP	87 %	4 minutes 10 seconds	13
6	MAHADEV	87 %	6 minutes 53 seconds	13
7	Payal	80 %	4 minutes 3 seconds	12
8	Bhaw a	80 %	5 minutes 3 seconds	12
9	Prisha	73 %	4 minutes 22 seconds	11
10	Diti	67 %	6 minutes 13 seconds	10
11	hi	60 %	6 minutes 49 seconds	9
12	haasini	53 %	5 minutes 57 seconds	8
13	Tushar kumar	53 %	34 minutes 37 seconds	8
14	archita	40 %	4 minutes 3 seconds	6

Also See: CBSE Class 12 Physics Syllabus 2025-26: Download PDF & Full Exam Pattern

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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