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

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

national income class 12 important questions answers

Output, disposition

Value added, production

Output, production

Wealth, development

2 / 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, and R is the correct explanation of A.

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

3 / 15

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

Value of intermediate goods

Net exports

Value of final goods

Value added by firms

4 / 15

Which of the following is a flow variable?

National income

Population at a given point

Money supply

Stock of capital

5 / 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 – 1, B – 3, C – 2, D – 4

A – 3, B – 1, C – 4, D – 2

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

6 / 15

Personal Disposable Income (PDI) is derived from Personal Income (PI) by:

Adding transfer payments

Subtracting personal taxes and non-tax payments

Subtracting net factor income from abroad

Adding corporate taxes

7 / 15

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

GDP = GNP

GDP > GNP

GDP < GNP

GDP + GNP = 0

8 / 15

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

Indirect taxes

Compensation of employees

Mixed income of self-employed

Operating surplus

9 / 15

The GDP deflator is calculated as:

(Nominal GDP / Real GDP) × 100

(Real GDP / Nominal GDP) × 100

Nominal GDP – Real GDP

Real GDP + Nominal GDP

10 / 15

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

Factor payments

Profits

Factor services

Consumption expenditure

11 / 15

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

Depreciation

Net Factor Income from Abroad (NFIA)

Subsidies

Indirect taxes

12 / 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

13 / 15

Net Investment is calculated as:

Gross Investment + Depreciation

Depreciation – Gross Investment

Gross Investment – Depreciation

Gross Investment + Net Factor Income from Abroad

14 / 15

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

GDPmp + Depreciation

GDPmp + Indirect Taxes – Subsidies

GDPmp – Net Factor Income from Abroad

GDPmp – Indirect Taxes + Subsidies

15 / 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 – 4, D – 1

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

A – 1, B – 2, C – 3, D – 4

Your score is

The average score is 75%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	Triman	100 %	1 minutes 54 seconds	15
2	hema	100 %	3 minutes 26 seconds	15
3	Ankita	100 %	5 minutes 9 seconds	15
4	Aaditya	100 %	5 minutes 31 seconds	15
5	Naman	100 %	8 minutes 36 seconds	15
6	Hazel	93 %	1 minutes 40 seconds	14
7	banana	93 %	2 minutes 23 seconds	14
8	Somya	93 %	2 minutes 36 seconds	14
9	Gazal	93 %	3 minutes 5 seconds	14
10	mani	93 %	3 minutes 12 seconds	14
11	R	93 %	3 minutes 18 seconds	14
12	Triman	93 %	3 minutes 47 seconds	14
13	harshit pandey	93 %	4 minutes 35 seconds	14
14	S	93 %	5 minutes 9 seconds	14
15	BHAU	93 %	5 minutes 13 seconds	14
16	Annie	87 %	3 minutes 13 seconds	13
17	gazal	87 %	6 minutes 5 seconds	13
18	Priya	80 %	3 minutes 2 seconds	12
19	Triman	80 %	3 minutes 30 seconds	12
20	Priya	80 %	5 minutes 17 seconds	12
21	Triman	80 %	5 minutes 49 seconds	12
22	p	80 %	6 minutes 6 seconds	12
23	..	73 %	3 minutes 14 seconds	11
24	Sandhya	73 %	6 minutes 13 seconds	11
25	harshit pandey	73 %	6 minutes 45 seconds	11
26	Devashree	73 %	7 minutes 21 seconds	11
27	Rajeev Singh	73 %	12 minutes 12 seconds	11
28	Tanvi Shrivastava	67 %	4 minutes 50 seconds	10
29	Nagamani M	67 %	7 minutes 45 seconds	10
30	Souty	67 %	11 minutes 8 seconds	10
31	arun	60 %	9 minutes 53 seconds	9
32	Raj	53 %	1 minutes 38 seconds	8
33	Rajeev Singh	53 %	6 minutes 16 seconds	8
34	kanu	53 %	7 minutes 52 seconds	8
35	manikandan playboy	53 %	10 minutes 26 seconds	8
36	shiv	53 %	11 minutes 10 seconds	8
37	M	47 %	6 minutes 22 seconds	7
38	Suchitha	40 %	1 minutes 2 seconds	6
39	Prince	40 %	3 minutes 47 seconds	6
40	Abc	40 %	8 minutes	6
41	Ahzyzjsj	20 %	2 minutes 2 seconds	3

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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