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

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

stock, flow

flow, stock

flow, flow

stock, stock

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:

Both statements 1 and 2 are true

Both statements 1 and 2 are false

Statement 1 is false and statement 2 is true

Statement 1 is true and statement 2 is false

3 / 15

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

Value of intermediate goods

Net exports

Value added by firms

Value of final goods

4 / 15

Also See: Lost Spring Class 12: Important Questions and Answers for Your Exam Preparation

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

GDPmp + Depreciation

GDPmp + Indirect Taxes – Subsidies

GDPmp – Indirect Taxes + Subsidies

GDPmp – Net Factor Income from Abroad

5 / 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 false, but R is true.

A is true, but R is false.

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.

6 / 15

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

Real flow

Monetary flow

Capital flow

Circular flow

7 / 15

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

True

False

8 / 15

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

Value of output – Value of intermediate goods

Gross Investment – Net Investment

Sales – Depreciation

Value of output + Value of intermediate goods

9 / 15

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

PFCE + GFCE + GDCF + Net Exports

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + NIT – Subsidies

10 / 15

Which of the following is a flow variable?

Population at a given point

National income

Money supply

Stock of capital

11 / 15

The GDP deflator is calculated as:

(Real GDP / Nominal GDP) × 100

Real GDP + Nominal GDP

Nominal GDP – Real GDP

(Nominal GDP / Real GDP) × 100

12 / 15

Also See: Comprehensive Guide: Class 12 Rural Development Q&A

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

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

They are not sold in the market

Their value is already included in the value of final goods

They are not produced within the domestic territory

They are imported goods

14 / 15

Real GDP is different from Nominal GDP because it:

Is measured at current prices

Is adjusted for price changes using constant prices

Includes inflation effects

Excludes net exports

15 / 15

Intermediate goods are always durable in nature.

False

True

Your score is

The average score is 72%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Pp	100 %	1 minutes 14 seconds	15
2	haasini	87 %	1 minutes 49 seconds	13
3	AP	87 %	4 minutes 10 seconds	13
4	MAHADEV	87 %	6 minutes 53 seconds	13
5	Payal	80 %	4 minutes 3 seconds	12
6	hi	60 %	6 minutes 49 seconds	9
7	haasini	53 %	5 minutes 57 seconds	8
8	Tushar kumar	53 %	34 minutes 37 seconds	8
9	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

More Class 12 Economics MCQ Quizzes

Also See: Employment: Growth, Informalization and Other Issues Class 12 Notes

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