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

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

False

True

2 / 15

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

national income class 12 important questions answers

Value added, production

Output, disposition

Wealth, development

Output, production

3 / 15

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

Flour purchased by a bakery for making bread

Bread purchased by a household for consumption

Machinery parts used in assembling a tractor

Wheat sold by a farmer to a mill

4 / 15

Which of the following is a flow variable?

National income

Population at a given point

Money supply

Stock of capital

5 / 15

Intermediate goods are always durable in nature.

False

True

6 / 15

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

Operating surplus

Indirect taxes

Compensation of employees

Mixed income of self-employed

7 / 15

If in an economy the value of Net Factor Income from Abroad is Rs. 200 crores and the value of Factor Income to Abroad is Rs. 40 crores. Identify the value of Factor Income from Abroad.

Rs. 160 crores

Rs. 180 crores

Rs. 240 crores

Rs. 200 crores

8 / 15

Assertion (A): Net Investment equals Gross Investment minus Depreciation.
Reason (R): Depreciation represents the increase in the stock of capital goods over time.

A is false, but R is true.

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

A is true, but R is false.

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

9 / 15

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

Exports increasing national income

Pollution from a factory reducing fishermen’s income

Construction of a new highway

Increased education spending

10 / 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 – 1, C – 4, D – 2

A – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 2, D – 4

11 / 15

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

Circular flow

Real flow

Capital flow

Monetary flow

12 / 15

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

Value of final goods

Net exports

Value of intermediate goods

Value added by firms

13 / 15

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

Gross Investment – Net Investment

Sales – Depreciation

Value of output – Value of intermediate goods

Value of output + Value of intermediate goods

14 / 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, but R is not the correct explanation of A.

A is false, but R is true.

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

15 / 15

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

PFCE + GFCE + Depreciation + NFIA

PFCE + GFCE + Net Investment – Exports

PFCE + GFCE + NIT – Subsidies

PFCE + GFCE + GDCF + Net Exports

Your score is

The average score is 64%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	BHAU	93 %	5 minutes 13 seconds	14
2	arun	60 %	9 minutes 53 seconds	9
3	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

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