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

Net Investment is calculated as:

Gross Investment – Depreciation

Gross Investment + Net Factor Income from Abroad

Depreciation – Gross Investment

Gross Investment + Depreciation

2 / 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

Both statements 1 and 2 are false

Both statements 1 and 2 are true

Statement 1 is true and statement 2 is false

3 / 15

Real GDP is different from Nominal GDP because it:

Is measured at current prices

Includes inflation effects

Is adjusted for price changes using constant prices

Excludes net exports

4 / 15

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

national income class 12 important questions answers

Output, production

Value added, production

Wealth, development

Output, disposition

5 / 15

The formula for converting GDP at market price (GDPmp) to GDP at factor cost (GDPfc) is:

GDPmp – Net Factor Income from Abroad

GDPmp + Depreciation

GDPmp + Indirect Taxes – Subsidies

GDPmp – Indirect Taxes + Subsidies

6 / 15

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Which of the following is a flow variable?

Population at a given point

Stock of capital

National income

Money supply

7 / 15

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

False

True

8 / 15

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

Construction of a new highway

Increased education spending

Exports increasing national income

Pollution from a factory reducing fishermen’s income

9 / 15

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

GDP < GNP

GDP = GNP

GDP + GNP = 0

GDP > GNP

10 / 15

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

Mixed income of self-employed

Operating surplus

Compensation of employees

Indirect taxes

11 / 15

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

flow, stock

flow, flow

stock, flow

stock, stock

12 / 15

Match the Income Aggregate with its Adjustment:

Column A	Column B
A. GDPmp to GDPfc	1. Subtract personal taxes and non-tax payments
B. GNPmp to NNPmp	2. Subtract depreciation
C. PI to PDI	3. Subtract indirect taxes + Add subsidies
D. NDPfc to NNPfc	4. Add Net Factor Income from Abroad

A – 1, B – 2, C – 3, D – 4

A – 3, B – 2, C – 1, D – 4

A – 3, B – 2, C – 4, D – 1

A – 3, B – 1, C – 2, D – 4

13 / 15

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

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + Depreciation + NFIA

14 / 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

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A – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

A – 3, B – 1, C – 2, D – 4

15 / 15

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

Consumption expenditure

Factor payments

Profits

Factor services

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2	Triman	100 %	1 minutes 54 seconds	15
3	hema	100 %	3 minutes 26 seconds	15
4	Ankita	100 %	5 minutes 9 seconds	15
5	Aaditya	100 %	5 minutes 31 seconds	15
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10	Somya	93 %	2 minutes 36 seconds	14
11	Rish	93 %	2 minutes 40 seconds	14
12	Gazal	93 %	3 minutes 5 seconds	14
13	mani	93 %	3 minutes 12 seconds	14
14	R	93 %	3 minutes 18 seconds	14
15	Triman	93 %	3 minutes 47 seconds	14
16	harshit pandey	93 %	4 minutes 35 seconds	14
17	S	93 %	5 minutes 9 seconds	14
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19	Chasing	93 %	5 minutes 34 seconds	14
20	Johny baba	87 %	51 seconds	13
21	youvikaa	87 %	2 minutes 40 seconds	13
22	Annie	87 %	3 minutes 13 seconds	13
23	gazal	87 %	6 minutes 5 seconds	13
24	Priya	80 %	3 minutes 2 seconds	12
25	Triman	80 %	3 minutes 30 seconds	12
26	Priya	80 %	5 minutes 17 seconds	12
27	Triman	80 %	5 minutes 49 seconds	12
28	p	80 %	6 minutes 6 seconds	12
29	Sunny Leo Ne kya kiya	73 %	43 seconds	11
30	~himanshu	73 %	1 minutes 6 seconds	11
31	..	73 %	3 minutes 14 seconds	11
32	Sandhya	73 %	6 minutes 13 seconds	11
33	harshit pandey	73 %	6 minutes 45 seconds	11
34	Devashree	73 %	7 minutes 21 seconds	11
35	Rajeev Singh	73 %	12 minutes 12 seconds	11
36	Tanvi Shrivastava	67 %	4 minutes 50 seconds	10
37	Nagamani M	67 %	7 minutes 45 seconds	10
38	Niharika	67 %	8 minutes 55 seconds	10
39	Souty	67 %	11 minutes 8 seconds	10
40	Om	60 %	2 minutes 25 seconds	9
41	Hhhkk	60 %	2 minutes 55 seconds	9
42	~himanshu	60 %	3 minutes 41 seconds	9
43	Adeeb	60 %	7 minutes 53 seconds	9
44	arun	60 %	9 minutes 53 seconds	9
45	Raj	53 %	1 minutes 38 seconds	8
46	Rajeev Singh	53 %	6 minutes 16 seconds	8
47	kanu	53 %	7 minutes 52 seconds	8
48	manikandan playboy	53 %	10 minutes 26 seconds	8
49	shiv	53 %	11 minutes 10 seconds	8
50	M	47 %	6 minutes 22 seconds	7
51	Suchitha	40 %	1 minutes 2 seconds	6
52	Prince	40 %	3 minutes 47 seconds	6
53	Abc	40 %	8 minutes	6
54	rakes	40 %	11 minutes 25 seconds	6
55	~terabaapaaya	27 %	33 seconds	4
56	Ahzyzjsj	20 %	2 minutes 2 seconds	3
57	virat	13 %	8 minutes 48 seconds	2

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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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