MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers

Find here the NCERT Book Multiple Choice Questions from Class 12 Economics book with Answers Pdf free download as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 12 Economics. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.


Q1. NNPMP = __

(A) GNPMP – Depreciation
(B) NDPMP + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these

(D) All of these


Q2. GDPFC =

(A) GDPMP – Net indirect taxes
(B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies
(D) GDPMP – Indirect taxes

(A) GDPMP – Net indirect taxes


Q3. NDPFC =

(A) GDPFC – Indirect taxes
(B) GDPFC – Depreciation
(C) GDPFC + Economic subsidy
(D) All of these

(B) GDPFC – Depreciation


Q4. NNPFC =

(A) GNPFC – Depreciation
(B) NNPMP + Economic subsidy – Indirect taxes
(C) NDPMP + Net factor income from abroad
(D) All of these

(D) All of these


Q5. Which of the following is the method of measuring National Income?

(A) Income method
(B) Product method
(C) Expenditure method
(D) All of these

(D) All of these


Q6. Why are the intermediate goods not included in the National Income while measuring National Income?

(A) To avoid double accounting
(B) It decreases income
(C) Intermediate goods are not good
(D) All of these

(A) To avoid double accounting


Q7. Who had made the first attempt at National Income Accounting?

(A) Prof. D.R.Gadgill
(B) Simon Kuznets
(C) J.M.Keynes
(D) Gregory King

(D) Gregory King


Q8. Calculation of National Income at Market Prices is known as _

(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these

(A) Money income


Q9. Accounting of National Income at constant prices is known as __

(A) Money income
(B) Real income
(C) Current income
(D) Domestic income

(B) Real income


Q10. Which of the following items are excluded from GNP measurement?

(A) Purely financial transactions
(B) Transfer of used goods and non-market goods and services
(C) Illegal activities and the value of leisure
(D) All of these

(D) All of these


Q11. The subject of the Study of Macro Economics is:

(a) The Principle of National Income
(b) The Principle of Consumer
(c) The Principle of Producer
(d) None of these

(a) The Principle of National Income


Q12. Macro Economics Studies:

(a) Employment opportunities in the economy
(b) Theory of supply of Commodities
(c) Elasticity of demand in Scooter
(d) Price of wheat in the market

(a) Employment opportunities in the economy


Q13. General Price Level is studied in:

(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these

(b) Macro Economics


Q14. Employment Theory is related to :

(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these

(c) Macro Economics


Q15. Increase in Stock of Capital is known as:

(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these

(c) Capital Formation


Q16. Which of the following is sPktock ?

(a) Wealth
(b) Saving
(c) Export
(d) Profit

(a) Wealth


Q17. Which one of the following is included in circular flow?

(a) Real Flow
(b) Money Flow
(c) Both (a) and (b)
(d) None of these

(c) Both (a) and (b)


Q18. Which one of the following is included in ‘Stock’?

(a) Quantity of Money
(b) Wealth
(c) Quantity of wheat stored in a warehouse
(d) All the above

(d) All the above


Q19. Which one is included inflow ?

(a) Consumption
(b) Investment
(c) Income
(d) All of these

(b) Investment


Q20. Which of the following is included in real flow?

(a) Flow of Goods
(b) Flow of Services
(c) Both (a) and (b)
(d) None of these

(c) Both (a) and (b)


Q21. Which services are provided by families to a firm?

(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above

(d) All the above


Q22. Which one is included in the three-sector model?

(a) Family
(b) Firm
(c) Government
(d) All of these

(d) All of these


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