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MCQ Questions 6 7 8 9 10 11 12 Extra Questions CBSE Notes Sample Papers * Skip to main content * Skip to secondary menu * Skip to primary sidebar * Skip to footer Menu * NCERT Solutions Submenu * NCERT Books * Class 10 * Class 9 * Class 8 * Class 7 * Class 6 * Class 11 * Class 12 * MCQ Questions Submenu * CBSE MCQ Learn Insta RD Sharma Solutions , RS Aggarwal Solutions and NCERT Solutions * Extra Questions * CBSE Notes * RD Sharma Solutions Submenu * RD Sharma Class 12 Solutions * RD Sharma Class 11 Solutions * RD Sharma Class 10 Solutions * RD Sharma Class 9 Solutions * RD Sharma Class 8 Solutions * RS Aggarwal Solutions Submenu * RS Aggarwal Solutions Class 10 * RS Aggarwal Solutions Class 9 * RS Aggarwal Solutions Class 8 * RS Aggarwal Solutions Class 7 * RS Aggarwal Solutions Class 6 * ML Aggarwal Solutions Submenu * ML Aggarwal Class 10 Solutions * ML Aggarwal Class 9 Solutions * ML Aggarwal Class 8 Solutions * ML Aggarwal Class 7 Solutions * ML Aggarwal Class 6 Solutions * English Grammar Submenu * English Summaries * Unseen Passages MCQ QUESTIONS FOR CLASS 12 ECONOMICS CHAPTER 2 NATIONAL INCOME ACCOUNTING WITH ANSWERS January 26, 2021 by Prasanna 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 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- Question 5. NDPFC = (A) GDPFC – Indirect taxes (B) GDPFC – Depreciation (C) GDPFC + Economic subsidy (D) All of these Answer Answer: (B) GDPFC – Depreciation -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics National Income Accounting MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon. Filed Under: MCQ Questions PRIMARY SIDEBAR * Maths NCERT Solutions * Science NCERT Solutions * Social Science NCERT Solutions * English NCERT Solutions * Hindi NCERT Solutions * Physics NCERT Solutions * Chemistry NCERT Solutions * Biology NCERT Solutions RS Aggarwal Solutions RD Sharma Solutions RS Aggarwal Class 10 RD Sharma Class 10 RS Aggarwal Class 9 RD Sharma Class 9 RS Aggarwal Class 8 RD Sharma Class 8 RS Aggarwal Class 7 RD Sharma Class 11 RS Aggarwal Class 6 RD Sharma Class 12 Search the site ... 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