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

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. 240 crores

Rs. 180 crores

Rs. 160 crores

Rs. 200 crores

2 / 15

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

Bread purchased by a household for consumption

Flour purchased by a bakery for making bread

Machinery parts used in assembling a tractor

Wheat sold by a farmer to a mill

3 / 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

Their value is already included in the value of final goods

They are imported goods

4 / 15

Intermediate goods are always durable in nature.

False

True

5 / 15

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

Indirect taxes

Depreciation

Subsidies

Net Factor Income from Abroad (NFIA)

6 / 15

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

Also See: Indian Economy 1950-1990 Class 12 MCQ Quiz – Test Your Knowledge!

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + Net Investment – Exports

7 / 15

Which of the following is a flow variable?

National income

Money supply

Population at a given point

Stock of capital

8 / 15

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

Monetary flow

Circular flow

Real flow

Capital flow

9 / 15

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

Sales – Depreciation

Value of output – Value of intermediate goods

Value of output + Value of intermediate goods

Gross Investment – Net Investment

10 / 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, but R is not 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, and R is the correct explanation of A.

11 / 15

Personal Disposable Income (PDI) is derived from Personal Income (PI) by:

Adding corporate taxes

Subtracting personal taxes and non-tax payments

Adding transfer payments

Subtracting net factor income from abroad

12 / 15

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

Increased education spending

Construction of a new highway

Pollution from a factory reducing fishermen’s income

Exports increasing national income

13 / 15

Net Investment is calculated as:

Gross Investment + Net Factor Income from Abroad

Gross Investment – Depreciation

Depreciation – Gross Investment

Gross Investment + Depreciation

14 / 15

Real GDP is different from Nominal GDP because it:

Is measured at current prices

Is adjusted for price changes using constant prices

Includes inflation effects

Excludes net exports

15 / 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

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

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

A – 3, B – 2, C – 4, D – 1

A – 1, B – 2, C – 3, D – 4

Your score is

The average score is 73%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	~himanshu	100 %	46 seconds	15
2	Triman	100 %	1 minutes 54 seconds	15
3	hema	100 %	3 minutes 26 seconds	15
4	Ankita	100 %	5 minutes 9 seconds	15
5	Aaditya	100 %	5 minutes 31 seconds	15
6	Naman	100 %	8 minutes 36 seconds	15
7	~himanshu	93 %	40 seconds	14
8	Hazel	93 %	1 minutes 40 seconds	14
9	banana	93 %	2 minutes 23 seconds	14
10	Somya	93 %	2 minutes 36 seconds	14
11	Rish	93 %	2 minutes 40 seconds	14
12	Gazal	93 %	3 minutes 5 seconds	14
13	mani	93 %	3 minutes 12 seconds	14
14	R	93 %	3 minutes 18 seconds	14
15	Triman	93 %	3 minutes 47 seconds	14
16	harshit pandey	93 %	4 minutes 35 seconds	14
17	S	93 %	5 minutes 9 seconds	14
18	BHAU	93 %	5 minutes 13 seconds	14
19	Chasing	93 %	5 minutes 34 seconds	14
20	Johny baba	87 %	51 seconds	13
21	youvikaa	87 %	2 minutes 40 seconds	13
22	Annie	87 %	3 minutes 13 seconds	13
23	gazal	87 %	6 minutes 5 seconds	13
24	Priya	80 %	3 minutes 2 seconds	12
25	Triman	80 %	3 minutes 30 seconds	12
26	Priya	80 %	5 minutes 17 seconds	12
27	Triman	80 %	5 minutes 49 seconds	12
28	p	80 %	6 minutes 6 seconds	12
29	Sunny Leo Ne kya kiya	73 %	43 seconds	11
30	~himanshu	73 %	1 minutes 6 seconds	11
31	..	73 %	3 minutes 14 seconds	11
32	Sandhya	73 %	6 minutes 13 seconds	11
33	harshit pandey	73 %	6 minutes 45 seconds	11
34	Devashree	73 %	7 minutes 21 seconds	11
35	Rajeev Singh	73 %	12 minutes 12 seconds	11
36	Tanvi Shrivastava	67 %	4 minutes 50 seconds	10
37	Nagamani M	67 %	7 minutes 45 seconds	10
38	Niharika	67 %	8 minutes 55 seconds	10
39	Souty	67 %	11 minutes 8 seconds	10
40	Om	60 %	2 minutes 25 seconds	9
41	Hhhkk	60 %	2 minutes 55 seconds	9
42	~himanshu	60 %	3 minutes 41 seconds	9
43	Adeeb	60 %	7 minutes 53 seconds	9
44	arun	60 %	9 minutes 53 seconds	9
45	Raj	53 %	1 minutes 38 seconds	8
46	Rajeev Singh	53 %	6 minutes 16 seconds	8
47	kanu	53 %	7 minutes 52 seconds	8
48	manikandan playboy	53 %	10 minutes 26 seconds	8
49	shiv	53 %	11 minutes 10 seconds	8
50	M	47 %	6 minutes 22 seconds	7
51	Suchitha	40 %	1 minutes 2 seconds	6
52	Prince	40 %	3 minutes 47 seconds	6
53	Abc	40 %	8 minutes	6
54	rakes	40 %	11 minutes 25 seconds	6
55	~terabaapaaya	27 %	33 seconds	4
56	Ahzyzjsj	20 %	2 minutes 2 seconds	3
57	virat	13 %	8 minutes 48 seconds	2

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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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