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): 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, and R is the correct explanation of A.

A is true, but R is false.

Both A and R are true, but R is not the correct explanation of A.

A is false, but R is true.

2 / 15

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

Capital flow

Circular flow

Real flow

Monetary flow

3 / 15

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

They are not produced within the domestic territory

Their value is already included in the value of final goods

They are imported goods

They are not sold in the market

4 / 15

Also See: CBSE Class 12 English Previous Year Question Papers with Answers PDF Download

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.

5 / 15

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

Consumption expenditure

Factor services

Factor payments

Profits

6 / 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

7 / 15

Real GDP is different from Nominal GDP because it:

Excludes net exports

Includes inflation effects

Is adjusted for price changes using constant prices

Is measured at current prices

8 / 15

Net Investment is calculated as:

Depreciation – Gross Investment

Gross Investment – Depreciation

Gross Investment + Depreciation

Gross Investment + Net Factor Income from Abroad

9 / 15

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

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + NIT – Subsidies

10 / 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

11 / 15

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

Indirect taxes

Subsidies

Depreciation

Net Factor Income from Abroad (NFIA)

12 / 15

Also See: Environment and Sustainable Development Class 12: Questions and Answers for Exam Success

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

Wheat sold by a farmer to a mill

Machinery parts used in assembling a tractor

Flour purchased by a bakery for making bread

Bread purchased by a household for consumption

13 / 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:

Both statements 1 and 2 are false

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

14 / 15

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

Value of output – Value of intermediate goods

Value of output + Value of intermediate goods

Gross Investment – Net Investment

Sales – Depreciation

15 / 15

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

Value of intermediate goods

Value added by firms

Net exports

Value of final goods

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: On the Face of It: Key Questions and Answers for Class 12 English

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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