National Income Accounting Class 12 MCQ Quiz – Test Your Understanding!

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

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

Net Factor Income from Abroad (NFIA)

Subsidies

Indirect taxes

Depreciation

2 / 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 true, but R is false.

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

A is false, but R is true.

3 / 15

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

They are imported goods

They are not sold in the market

They are not produced within the domestic territory

Their value is already included in the value of final goods

4 / 15

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

Subtracting personal taxes and non-tax payments

Subtracting net factor income from abroad

Adding corporate taxes

Adding transfer payments

5 / 15

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

Circular flow

Monetary flow

Real flow

Capital flow

6 / 15

Assertion (A): GDP may overestimate welfare if negative externalities like pollution are ignored.
Reason (R): GDP includes non-monetary transactions and barter exchanges.

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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.

7 / 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 – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 4, D – 1

A – 1, B – 2, C – 3, D – 4

A – 3, B – 2, C – 1, D – 4

8 / 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, production

Wealth, development

Output, disposition

9 / 15

Net Investment is calculated as:

Gross Investment – Depreciation

Depreciation – Gross Investment

Gross Investment + Depreciation

Gross Investment + Net Factor Income from Abroad

10 / 15

Which of the following is a flow variable?

Population at a given point

Stock of capital

National income

Money supply

11 / 15

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

Operating surplus

Indirect taxes

Mixed income of self-employed

Compensation of employees

12 / 15

Real GDP is different from Nominal GDP because it:

Includes inflation effects

Is adjusted for price changes using constant prices

Is measured at current prices

Excludes net exports

13 / 15

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

GDP + GNP = 0

GDP = GNP

GDP < GNP

GDP > GNP

14 / 15

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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 false and statement 2 is true

Both statements 1 and 2 are true

Both statements 1 and 2 are false

Statement 1 is true and statement 2 is false

15 / 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. 200 crores

Rs. 180 crores

Rs. 160 crores

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The average score is 73%

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