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

Check the below NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided National Income Accounting Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

National Income Accounting Class 12 MCQs Questions with Answers

National Income MCQ Chapter 2 Class 12 Question 1.
GNP at MP = ______
(A) GDPMP – Depreciation
(B) GDPMP + Depreciation
(C) GDPMP ÷ Depreciation
(D) GDPMP + Net factor income from abroad

Answer

Answer: (A) GDPMP – Depreciation


MCQ On National Income Chapter 2 Class 12 Question 2.
NDPMP = ________
(A) GDPMP – Depreciation
(B) GDPFC + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these

Answer

Answer: (A) GDPMP – Depreciation


MCQs On National Income Chapter 2 Class 12 Question 3.
NNPMP = ________
(A) GNPMP – Depreciation
(B) NDPMP + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these

Answer

Answer: (D) All of these


MCQ On National Income Class 12 Chapter 2 Question 4.
GDPFC =
(A) GDPMP – Net indirect taxes
(B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies
(D) GDPMP – Indirect taxes

Answer

Answer: (A) GDPMP – Net indirect taxes


MCQ On National Income Pdf Chapter 2 Class 12 Question 5.
NDPFC =
(A) GDPFC – Indirect taxes
(B) GDPFC – Depreciation
(C) GDPFC + Economic subsidy
(D) All of these

Answer

Answer: (B) GDPFC – Depreciation


National Income MCQs Chapter 2 Class 12 Question 6.
NNPFC =
(A) GNPFC – Depreciation
(B) NNPMP + Economic subsidy – Indirect taxes
(C) NDPMP + Net factor income from abroad
(D) All of these

Answer

Answer: (D) All of these


Macroeconomics Class 12 Chapter 2 MCQ  Question 7.
Which of the following is the method of measuring National Income?
(A) Income method
(B) Product method
(C) Expenditure method
(D) All of these

Answer

Answer: (D) All of these


National Income Includes MCQ Chapter 2 Class 12 Question 8.
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

Answer

Answer: (A) To avoid double accounting


Question 9.
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

Answer

Answer: (D) Gregory King


Question 10.
Calculation of National Income at Market Prices is known as _________
(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these

Answer

Answer: (A) Money income


Question 11.
Accounting of National Income at constant prices is known as ________
(A) Money income
(B) Real income
(C) Current income
(D) Domestic income

Answer

Answer: (B) Real income


Question 12.
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

Answer

Answer: (D) All of these


Question 13.
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

Answer

Answer: (a) The Principle of National Income


Question 14.
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

Answer

Answer: (a) Employment opportunities in the economy


Question 15.
General Price Level is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Macro Economics


Question 16.
Employment Theory is related to :
(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these

Answer

Answer: (c) Macro Economics


Question 17.
Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these

Answer

Answer: (c) Capital Formation


Question 18.
Which of the following is sPktock ?
(a) Wealth
(b) Saving
(c) Export
(d) Profit

Answer

Answer: (a) Wealth


Question 19.
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

Answer

Answer: (c) Both (a) and (b)


Question 20.
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

Answer

Answer: (d) All the above


Question 21.
Which one is included inflow ?
(a) Consumption
(b) Investment
(c) Income
(d) All of these

Answer

Answer: (b) Investment


Question 22.
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

Answer

Answer: (c) Both (a) and (b)


Question 23.
Which services are provided by families to a firm?
(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above

Answer

Answer: (d) All the above


Question 24.
Which one is included in the three-sector model?
(a) Family
(b) Firm
(c) Government
(d) All of these

Answer

Answer: (d) All of these


Question 25.
Which one is included in the four-sector model?
(a) Family, Firm, Industry
(b) Family, Firm, Government
(c) Family, Firm, Government, Foreign Sector
(d) None of the above

Answer

Answer: (c) Family, Firm, Government, Foreign Sector


Question 26.
Which is the equilibrium condition of circular flow in the four sector model?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these

Answer

Answer: (c) C + I + G + (X-M)


Question 27.
The primary sector includes:
(a) Agriculture
(b) Retail trading
(c) Small Industries
(d) All the these

Answer

Answer: (d) All the these


Question 28.
For a four sector or open economy the condition for equilibrium is:
(a) Savings + taxes + Imports = Investment + govt, expenditure + exports
(b) Total Leakages = Total Injections
(c) Aggregate output = Aggregate Expenditure
(d) All of these

Answer

Answer: (d) All of these


Question 29.
Which service is included in Tertiary Sector?
(a) Mining
(b) Construction
(c) Communication
(d) Animal Husbandry

Answer

Answer: (c) Communication


Question 30.
Which of the following is not flow?
(a) Capital
(b) Income
(c) Investment
(d) Depreciation

Answer

Answer: (a) Capital


Question 31.
The market price of all final goods of a country in a year is known as:
(a) GDPMP
(b) GDPFC
(c) NNPFC
(d) None of these

Answer

Answer: (a) GDPMP


Question 32.
Which one is true?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation
(d) GNP = NNP – Depreciation

Answer

Answer: (c) NNP = GNP – Depreciation


Question 33.
GNPMp =?
(a) GDPMp – Depreciation
(b) GDPMp + Net Factor Income from Abroad
(c) GNPMp + Subsidy
(d) None of the above

Answer

Answer: (b) GDPMp + Net Factor Income from Abroad


Question 34.
NNPMP = ?
(a) GNPMp – Depreciation
(b) GNPMp + Depreciation
(c) GNPMp + Indirect Tax
(d) None of the above

Answer

Answer: (a) GNPMp – Depreciation


Question 35.
Depreciation expenses are included in:
(a) GNPMp
(b) NNPMp
(c) NNPFC
(d) None of these

Answer

Answer: (a) GNPMp


Question 36.
NDPFC = ?
(a) NDPMP – Indirect Tax
(b) GNPMP – Indirect Tax + Subsidy
(c) NDPMP – Subsidy
(d) NDPMF – Depreciation

Answer

Answer: (b) GNPMP – Indirect Tax + Subsidy


Question 37.
Net National Income at Factor Cost is called?
(a) National Income
(b) Gross Investment
(c) Domestic Income
(d) None of these

Answer

Answer: (a) National Income


Question 38.
Which one is included in National Income?
(a) Rent, Wage, Interest
(b) Rent, Wage, Salary
(c) Rent, Profit, Interest
(d) Rent, Wage, Salary, Interest, Profit

Answer

Answer: (d) Rent, Wage, Salary, Interest, Profit


Question 39.
What is the consumption of fixed capital called?
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All of these

Answer

Answer: (b) Depreciation


Question 40.
Which of the following is correct?
(a) Disposable Income = Personal Income – Direct Taxes
(b) Disposable Income = Private Income – Direct Taxes
(c) Disposable Income = Personal Income – Indirect Taxes
(d) Disposable Income = Private Income – Indirect Taxes

Answer

Answer: (a) Disposable Income = Personal Income – Direct Taxes


Question 41.
If for a country net factor income from abroad is negative then:
(a) GDP < GNP
(b) GDP > GNP
(c) GDP ≥ GNP
(d) GDP = GNP

Answer

Answer: (b) GDP > GNP


Question 42.
The market value of all final goods and services produced in an economy over a year is called :
(a) Gross National Product
(b) National Income
(c) Gross Domestic Product
(d) Net National Product

Answer

Answer: (c) Gross Domestic Product


Question 43.
Which method is adopted in measuring National Income?
(a) Production Method
(b) Income Method
(c) Expenditure Method
(d) All of these

Answer

Answer: (d) All of these


Question 44.
Which sector is included in an economy?
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these

Answer

Answer: (d) All of these


Question 45.
Which of the following is not included in the calculation of Gross National Product?
(a) Purchase and Sale of Old commodities
(b) Intermediate Commodities
(c) (a) and (b) both
(d) None of the above

Answer

Answer: (c) (a) and (b) both


Question 46.
Which one of the following services are included in the Secondary Sector?
(a) Insurance
(b) Manufacturing
(c) Trade
(d) Banking

Answer

Answer: (b) Manufacturing


Question 47.
Which one is included in Primary Sector?
(a) Land
(b) Forest
(c) Mining
(d) All these

Answer

Answer: (d) All these


Question 48.
To include the value of goods or services more than one time while calculating National Income is called :
(a) Single Counting
(b) Double Counting
(c) Multiple Counting
(d) None of these

Answer

Answer: (b) Double Counting


Question 49.
Which one is a component of profit?
(a) Dividend
(b) Undistributed Profit
(c) Corporate Profit Tax
(d) All of these

Answer

Answer: (d) All of these


Question 50.
Which one is included in National Income?
(a) Transfer Earnings
(b) Sale proceeds of Shares and Bonds
(c) Black Money
(d) None of the Above

Answer

Answer: (d) None of the Above


Question 51.
Which one is included in the calculation of National Income?
(a) New Final Goods and Services
(b) Earned Income of Indian Companies in Abroad
(c) Expenses made by Foreign Tourists in the country
(d) All the above

Answer

Answer: (d) All the above


Question 52.
Which one is the limitation of Macro Economics?
(a) Collective Economic Paradox
(b) Ignores Individual Units
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)


Question 53.
Macro-economics is the study of:
(a) Principle or Theories of national income
(b) Consumer’s theory
(c) Production theory
(d) None of these.

Answer

Answer: (a) Principle or Theories of national income


Question 54.
Out of the following which is not a flow:
(a) Capital
(b) Income
(c) Investment
(d) Depreciation.

Answer

Answer: (a) Capital


Question 55.
From the following which method is used for measuring national income:
(a) Production method
(b) Income method
(c) Expenditure method
(d) All of the above.

Answer

Answer: (d) All of the above.


Question 56.
Which of the following is included in the primary sector:
(a) Land
(b) Forest
(c) Mines
(d) All of the above.

Answer

Answer: (d) All of the above


Question 57.
Total national income divided by total population is known as:
(a) Private income
(b) Personal income
(c) Personal spendable income
(d) Per capita income.

Answer

Answer: (d) Per capita income


Question 58.
Production enterprises are divided in:
(a) Two sectors
(b) Three sectors
(c) Four sectors
(d) Five sectors.

Answer

Answer: (b) Three sectors


Fill in the blanks:

Question 1.
________ income is the value of current income at base-year prices.

Answer

Answer: Real


Question 2.
__________ flow shows flow of goods and services across different sectors.

Answer

Answer: Real


Question 3.
_______ sector is also known as the service sector.

Answer

Answer: Tertiary


Question 4.
_________ is an economic variable that is measured over a specific period of time. It is a dynamic concept.

Answer

Answer: Flow


Question 5.
________ is the loss of value of fixed assets due to normal wear and tear.

Answer

Answer: Depreciation


Question 6.
Environmental pollution caused by industries is a _______ externality.

Answer

Answer: negative


Question 7.
_______ are the economic assistance given by the government for the general welfare.

Answer

Answer: Subsidies


Question 8.
Investment refers to addition to the ________ of an economy. For example purchase of machinery, construction of the metro.

Answer

Answer: capital stock


Question 9.
Nominal GDP is the value of GDP at _______ prices.

Answer

Answer: current


Question 10.
________ means estimating the value of goods and services more than once.

Answer

Answer: Double counting


Question 11.
Agriculture is included in the…………… sector.

Answer

Answer: Primary


Question 12.
Pigou has divided welfare into ………….. parts.

Answer

Answer: Two


Question 13.
Chinese product is included in …………… area of the economy.

Answer

Answer: Secondary


Question 14.
National income in India is calculated by………………

Answer

Answer: Central statistical organisation


Question 15.
The total value of all final goods and services produced within the domestic territory of a country during an accounting year is known as ……….

Answer

Answer: GDP


Question 16.
……….. is an index of economic development of the country.

Answer

Answer: National income.


State true or false:

Question 1.
As compared to developed countries, India’s per capita income is quite less.

Answer

Answer: True


Question 2.
Black money has given birth to a parallel economy in the country.

Answer

Answer: True


Question 3.
The major contribution to India’s national income is from the secondary sector.

Answer

Answer: False


Question 4.
Electricity, LPG, and water supply are included in the primary sector.

Answer

Answer: False


Question 5.
Income from gifts is included in the national income.

Answer

Answer: False


Question 6.
The sale of second-hand goods is not included in the national income.

Answer

Answer: True


Match the following:

Question 1.

‘A’ ‘B’
1. Fish culture (a) Tertiary sector
2. Highest contribution in national income (b) Year 1952
3. National income committee was established in (c) Mixed method
4. National income calculation is done by (d) Year 1949
5. Establishment of C.S.O. (e) Primary sector.
Answer

Answer:

‘A’ ‘B’
1. Fish culture (e) Primary sector.
2. Highest contribution in national income (a) Tertiary sector
3. National income committee was established in (d) Year 1949
4. National income calculation is done by (c) Mixed method
5. Establishment of C.S.O. (b) Year 1952

Question 2.

Column-I Column-II
1. Real flow (A) Imports, savings, etc.
2. Money flow (B) Exports, investments, etc.
3. Examples of injections (C) Balance in the bank account as of January 1st, 2019
4. Examples of leakages (D) Income per Month
5. Examples of stock (E) Income from a self-employed person
6. Examples of flow (F) GNP at constant prices
7. GDPMP (G) The flow of goods and sen/ices
8. Mixed-income (H) GDPFC + NIT – Subsidies
9. Change in the stock (I) Depreciation
10. Nominal GNP (J) The flow of money across different sectors
11. Real GNP (K) Closing stock – opening stock
12. Consumption1 of fixed capital (L) GNP at current prices
Answer

Answer:

Column-I Column-II
1. Real flow (G) The flow of goods and sen/ices
2. Money flow (J) The flow of money across different sectors
3. Examples of injections (B) Exports, investments, etc.
4. Examples of leakages (A) Imports, savings, etc.
5. Examples of stock (C) Balance in the bank account as of January 1st, 2019
6. Examples of flow (D) Income per Month
7. GDPMP (H) GDPFC + NIT – Subsidies
8. Mixed-income (E) Income from a self-employed person
9. Change in the stock (K) Closing stock – opening stock
10. Nominal GNP (L) GNP at current prices
11. Real GNP (F) GNP at constant prices
12. Consumption1 of fixed capital (I) Depreciation

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