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

Why are intermediate goods excluded from the calculation of national income?

They are imported goods

Their value is already included in the value of final goods

They are not sold in the market

They are not produced within the domestic territory

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

Intermediate goods are always durable in nature.

True

False

4 / 15

Read the following figure carefully and choose the correct pair from the alternatives given below:

national income class 12 important questions answers

Wealth, development

Output, production

Output, disposition

Value added, production

5 / 15

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

Also See: Comparative Development Experiences of India and its Neighbors Class 12 MCQ Quiz – Test Your Understanding!

Value added by firms

Value of intermediate goods

Net exports

Value of final goods

6 / 15

Which of the following is NOT a component of Net Domestic Product at Factor Cost (NDPfc) under the income method?

Operating surplus

Mixed income of self-employed

Indirect taxes

Compensation of employees

7 / 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

8 / 15

In the circular flow of income in a two-sector economy, what flows from households to firms?

Consumption expenditure

Factor services

Profits

Factor payments

9 / 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

10 / 15

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

Monetary flow

Capital flow

Real flow

Circular flow

11 / 15

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

Indirect taxes

Subsidies

Net Factor Income from Abroad (NFIA)

Depreciation

12 / 15

Which of the following is a flow variable?

Money supply

Stock of capital

National income

Population at a given point

13 / 15

Also See: CBSE Class 12th Result 2026 Expected Date Updates: Check Here

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.

A is false, but R is true.

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.

14 / 15

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

GDPmp – Net Factor Income from Abroad

GDPmp – Indirect Taxes + Subsidies

GDPmp + Depreciation

GDPmp + Indirect Taxes – Subsidies

15 / 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

Wheat sold by a farmer to a mill

Machinery parts used in assembling a tractor

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 Topper's Answer Sheet 2024: PDF Download

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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