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

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 – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

2 / 15

Real GDP is different from Nominal GDP because it:

Is adjusted for price changes using constant prices

Includes inflation effects

Is measured at current prices

Excludes net exports

3 / 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 – 3, B – 2, C – 1, D – 4

A – 3, B – 2, C – 4, D – 1

A – 1, B – 2, C – 3, D – 4

A – 3, B – 1, C – 2, D – 4

4 / 15

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

True

False

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.

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

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.

6 / 15

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

They are not sold in the market

They are imported goods

They are not produced within the domestic territory

Their value is already included in the value of final goods

7 / 15

Net Investment is calculated as:

Gross Investment – Depreciation

Gross Investment + Net Factor Income from Abroad

Gross Investment + Depreciation

Depreciation – Gross Investment

8 / 15

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

Flour purchased by a bakery for making bread

Machinery parts used in assembling a tractor

Wheat sold by a farmer to a mill

Bread purchased by a household for consumption

9 / 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

10 / 15

The GDP deflator is calculated as:

Nominal GDP – Real GDP

Real GDP + Nominal GDP

(Nominal GDP / Real GDP) × 100

(Real GDP / Nominal GDP) × 100

11 / 15

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

Real flow

Capital flow

Monetary flow

Circular flow

12 / 15

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

Consumption expenditure

Profits

Factor services

Factor payments

13 / 15

Intermediate goods are always durable in nature.

True

False

14 / 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 true

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are false

15 / 15

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

Value of intermediate goods

Value of final goods

Net exports

Value added by firms

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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