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

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.

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

A is false, but R is true.

2 / 15

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

Increased education spending

Construction of a new highway

Exports increasing national income

Pollution from a factory reducing fishermen’s income

3 / 15

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

Real flow

Capital flow

Circular flow

Monetary flow

4 / 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

5 / 15

Net Investment is calculated as:

Gross Investment + Net Factor Income from Abroad

Depreciation – Gross Investment

Gross Investment + Depreciation

Gross Investment – Depreciation

6 / 15

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

Factor services

Consumption expenditure

Profits

Factor payments

7 / 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 transfer payments

Adding corporate taxes

8 / 15

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

False

True

9 / 15

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

Value of output – Value of intermediate goods

Sales – Depreciation

Value of output + Value of intermediate goods

Gross Investment – Net Investment

10 / 15

Real GDP is different from Nominal GDP because it:

Is measured at current prices

Is adjusted for price changes using constant prices

Excludes net exports

Includes inflation effects

11 / 15

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

Compensation of employees

Mixed income of self-employed

Indirect taxes

Operating surplus

12 / 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 false and statement 2 is true

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are true

Both statements 1 and 2 are false

13 / 15

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

Wheat sold by a farmer to a mill

Bread purchased by a household for consumption

Flour purchased by a bakery for making bread

Machinery parts used in assembling a tractor

14 / 15

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

Indirect taxes

Depreciation

Net Factor Income from Abroad (NFIA)

Subsidies

15 / 15

Intermediate goods are always durable in nature.

True

False

Your score is

The average score is 77%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Triman	100 %	1 minutes 54 seconds	15
2	Ankita	100 %	5 minutes 9 seconds	15
3	Naman	100 %	8 minutes 36 seconds	15
4	Hazel	93 %	1 minutes 40 seconds	14
5	banana	93 %	2 minutes 23 seconds	14
6	Somya	93 %	2 minutes 36 seconds	14
7	Triman	93 %	3 minutes 47 seconds	14
8	S	93 %	5 minutes 9 seconds	14
9	BHAU	93 %	5 minutes 13 seconds	14
10	Annie	87 %	3 minutes 13 seconds	13
11	Priya	80 %	3 minutes 2 seconds	12
12	Triman	80 %	3 minutes 30 seconds	12
13	Priya	80 %	5 minutes 17 seconds	12
14	Triman	80 %	5 minutes 49 seconds	12
15	p	80 %	6 minutes 6 seconds	12
16	Tanvi Shrivastava	67 %	4 minutes 50 seconds	10
17	Nagamani M	67 %	7 minutes 45 seconds	10
18	Souty	67 %	11 minutes 8 seconds	10
19	arun	60 %	9 minutes 53 seconds	9
20	Raj	53 %	1 minutes 38 seconds	8
21	kanu	53 %	7 minutes 52 seconds	8
22	M	47 %	6 minutes 22 seconds	7
23	Suchitha	40 %	1 minutes 2 seconds	6
24	Prince	40 %	3 minutes 47 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

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

WhatsApp Group Join Now

Telegram Group Join Now

Instagram Follow Now

Spread the love

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

Related posts:

Leave a Comment Cancel reply