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

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

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + Net Investment – Exports

2 / 15

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

Monetary flow

Capital flow

Real flow

Circular flow

3 / 15

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

They are not sold in the market

They are imported goods

Their value is already included in the value of final goods

They are not produced within the domestic territory

4 / 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 + Depreciation

GDPmp – Indirect Taxes + Subsidies

5 / 15

Also See: Indian Economy on the Eve of Independence Class 12 MCQ Quiz – Test Your Knowledge!

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

Construction of a new highway

Increased education spending

Pollution from a factory reducing fishermen’s income

Exports increasing national income

6 / 15

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

Depreciation

Subsidies

Indirect taxes

Net Factor Income from Abroad (NFIA)

7 / 15

Intermediate goods are always durable in nature.

False

True

8 / 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

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

9 / 15

Which of the following is a flow variable?

Stock of capital

Population at a given point

National income

Money supply

10 / 15

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

Subtracting personal taxes and non-tax payments

Adding corporate taxes

Subtracting net factor income from abroad

Adding transfer payments

11 / 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, disposition

Value added, production

Output, production

12 / 15

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

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GDP = GNP

GDP > GNP

GDP < GNP

GDP + GNP = 0

13 / 15

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

Machinery parts used in assembling a tractor

Flour purchased by a bakery for making bread

Bread purchased by a household for consumption

Wheat sold by a farmer to a mill

14 / 15

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

Net exports

Value of final goods

Value of intermediate goods

Value added by firms

15 / 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.

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

A is false, but R is true.

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

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

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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More Class 12 Economics MCQ Quizzes

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