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

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

national income class 12 important questions answers

Wealth, development

Value added, production

Output, disposition

Output, production

2 / 15

Intermediate goods are always durable in nature.

False

True

3 / 15

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

Gross Investment – Net Investment

Value of output – Value of intermediate goods

Sales – Depreciation

Value of output + Value of intermediate goods

4 / 15

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

GDP = GNP

GDP < GNP

GDP > GNP

GDP + GNP = 0

5 / 15

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

Also See: Going Places Class 12: Important Questions and Answers

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + NIT – Subsidies

6 / 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

7 / 15

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.

8 / 15

The GDP deflator is calculated as:

Real GDP + Nominal GDP

(Nominal GDP / Real GDP) × 100

(Real GDP / Nominal GDP) × 100

Nominal GDP – Real GDP

9 / 15

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

True

False

10 / 15

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

Machinery parts used in assembling a tractor

Bread purchased by a household for consumption

Flour purchased by a bakery for making bread

Wheat sold by a farmer to a mill

11 / 15

Also See: Indian Economy 1950-1990: Class 12 Important Questions and Answers for Board Exams

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

Compensation of employees

Indirect taxes

Mixed income of self-employed

Operating surplus

12 / 15

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

Capital flow

Monetary flow

Circular flow

Real flow

13 / 15

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

Net Factor Income from Abroad (NFIA)

Depreciation

Indirect taxes

Subsidies

14 / 15

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

Value added by firms

Net exports

Value of intermediate goods

Value of final goods

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

Also See: Indian Economy 1950 to 1990 Class 12 Notes: A Comprehensive Guide

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

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