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): Net Investment equals Gross Investment minus Depreciation.
Reason (R): Depreciation represents the increase in the stock of capital goods over time.

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.

2 / 15

Which of the following is a flow variable?

Money supply

Population at a given point

National income

Stock of capital

3 / 15

The GDP deflator is calculated as:

Real GDP + Nominal GDP

(Nominal GDP / Real GDP) × 100

Nominal GDP – Real GDP

(Real GDP / Nominal GDP) × 100

4 / 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 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.

5 / 15

Also See: Comparative Development Experiences of India and its Neighbours Simplified Class 12 Questions & Answers

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

6 / 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 + Indirect Taxes – Subsidies

GDPmp + Depreciation

7 / 15

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

They are imported goods

They are not produced within the domestic territory

Their value is already included in the value of final goods

They are not sold in the market

8 / 15

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

Subtracting net factor income from abroad

Subtracting personal taxes and non-tax payments

Adding corporate taxes

Adding transfer payments

9 / 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. 200 crores

Rs. 180 crores

Rs. 160 crores

Rs. 240 crores

10 / 15

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

Also See: A Thing of Beauty Class 12: Important Questions and Answers Explained

Value of output + Value of intermediate goods

Value of output – Value of intermediate goods

Sales – Depreciation

Gross Investment – Net Investment

11 / 15

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

Profits

Factor services

Factor payments

Consumption expenditure

12 / 15

Intermediate goods are always durable in nature.

False

True

13 / 15

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

False

True

14 / 15

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

Circular flow

Capital flow

Monetary flow

Real flow

15 / 15

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

national income class 12 important questions answers

Value added, production

Output, disposition

Wealth, development

Output, production

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 10 and 12 Supplementary Exam Admit Card 2025 Released – Download Link for Regular & Private Candidates

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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