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

WhatsApp Group Join Now

Telegram Group Join Now

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

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

Indirect taxes

Operating surplus

Mixed income of self-employed

Compensation of employees

2 / 15

Real GDP is different from Nominal GDP because it:

Includes inflation effects

Is adjusted for price changes using constant prices

Excludes net exports

Is measured at current prices

3 / 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

4 / 15

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

Factor payments

Consumption expenditure

Factor services

Profits

5 / 15

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

Also See: CBSE Class 12 Geography Previous Year Question Papers with Solutions – PDF Download

Their value is already included in the value of final goods

They are imported goods

They are not sold in the market

They are not produced within the domestic territory

6 / 15

Inventory is a _____ concept whereas the change in inventory is a _____ concept.

flow, flow

stock, stock

stock, flow

flow, stock

7 / 15

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

Adding transfer payments

Subtracting net factor income from abroad

Adding corporate taxes

Subtracting personal taxes and non-tax payments

8 / 15

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

Sales – Depreciation

Gross Investment – Net Investment

Value of output – Value of intermediate goods

Value of output + Value of intermediate goods

9 / 15

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

Increased education spending

Exports increasing national income

Pollution from a factory reducing fishermen’s income

Construction of a new highway

10 / 15

The GDP deflator is calculated as:

(Nominal GDP / Real GDP) × 100

Nominal GDP – Real GDP

(Real GDP / Nominal GDP) × 100

Real GDP + Nominal GDP

11 / 15

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

Value of final goods

Value added by firms

Net exports

Value of intermediate goods

12 / 15

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

False

True

13 / 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

Also See: Indigo Class 12 Exam: Important Questions with Detailed Answers

A – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

14 / 15

Intermediate goods are always durable in nature.

True

False

15 / 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

Your score is

The average score is 77%

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	Habeeb	93 %	3 minutes 19 seconds	14
5	haasini	87 %	1 minutes 49 seconds	13
6	AP	87 %	4 minutes 10 seconds	13
7	MAHADEV	87 %	6 minutes 53 seconds	13
8	Payal	80 %	4 minutes 3 seconds	12
9	Bhaw a	80 %	5 minutes 3 seconds	12
10	Prisha	73 %	4 minutes 22 seconds	11
11	Diti	67 %	6 minutes 13 seconds	10
12	hi	60 %	6 minutes 49 seconds	9
13	haasini	53 %	5 minutes 57 seconds	8
14	Tushar kumar	53 %	34 minutes 37 seconds	8
15	archita	40 %	4 minutes 3 seconds	6

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

More Class 12 Economics MCQ Quizzes

Also See: CBSE Class 12 Physical Education Previous Year Question Papers with Solutions – PDF Download

Take the quiz now and ace your CBSE Class 12 Economics exam!