# Class 12 Economics Chapter 8 National Income Accounting MCQ Question with Answers

National Income Accounting Class 12 MCQ is one of the best strategies to prepare for the CBSE Class 12 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQ on National Income Accounting for Class 12 with Answers which will help them all through their board test.

## National Income Accounting Class 12 MCQ Questions with Answers

Class 12 Economics MCQ with answers are given here for Chapter 8 National Income Accounting. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 12 Economics syllabus. By Solving these Class 12 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 12 Annual exam.

Learn MCQ of National Income Accounting Class 12 PDF, with Answer according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE National Income AccountingClass 12 MCQ with answers given below.

Q.1 If factor cost is greater than marker price, it means that
a) Indirect taxes < subsidies
b) Indirect taxes > subsidies
c) Indirect taxes = subsidies
d) None of these

Indirect taxes < subsidies

Q.2 Output means……………unless stated otherwise
a) Gross output at MP
b) Net output at MP
c) Gross output at FC
d) None of these

Gross output at MP

Q.3 Which of the following is not a component of domestic income?
a) Operating surplus
b) Compensation of employees
c) Net factor income from abroad
d) Mixed income

Q.4 Which of the following is not true about final goods?
(a) Final gods satisfy wants of ultimate consumers and producers.
(b) Final goods have direct demand as they satisfy the wants directly.
(c) Final goods are subject to further transformation in the process of production.
(d) Final goods are neither used up as raw-material nor for resale in the same year.

C

Q.5 Following is an example of final good:
(a) Flour used by a banker in making biscuits
(b) Unsold stock of goods lying with the sellers
(c) Tyres purchased by a transport company
(d) Mobile sets purchased by a mobile dealer

Unsold stock of goods lying with the sellers.

Q.6 An Indian farmer produces wheat without incurring cost of inputs and sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total value added is Rs.
a) 1600
b) 2200
c) 1000
d) 1400

1600

Q.7 ‘Commodity service method’ is another name for:
(a) Expenditure method
(b) Income method
(d) None of these

Q.8 Which out of the following is not included in estimation of NI?
(a) Subsidized Lunch
(b) Old-age Pension
(c) Free Medical facilities
(d) Construction of a house

Old-age Pension

Q.9 Which of the following is included in compensation of employees?
(a) Dearness Allowance
(b) Tools given to employees to be used during work
(c) Payment by insurance company to an injured employee
(d) Contribution by employee to provident fund

Dearness Allowance

Q.10 NVA fc Equals to
a) Sum of factor payments
b) Sum of Current transfer Payments
c) Sum of Capital Transfer Payments
d) Net Current transfer from rest of the world

Sum of factor Payments

Q.11 NNP fc is called:
a) National Income
b) Domestic Income
c) Personal Income
d) Private Income

National Income

Q.12 Which of the following statements is true?
(a) Bread is always a consumer good
(b) All producer goods are not capital goods
(c) Transfer income is received for providing a good or service in return
(d) Interest paid by a household on car loan from a bank is a factor payment

All producer goods are not capital goods

Q.13 Which of the following will not be included while calculating national income by income method?
a) Wages and Salaries
b) Royalty
c) Scholarship
d) Profit

Scholarship

Q.14 National Income = Domestic income when:
a) NFIA is Positive
b) NFIA is Negative
c) NFIA is Zero
d) None of the above

NFIA is Zero

Q.15 Which of the following item will not be included while calculating NDP mp.
a) Private final consumption expenditure
b) Consumption of fixed capital
c) Govt Final consumption expenditure
d) Net Export

Consumption of fixed capital

Q.16 Consumption of fixed capital refers to fall in the value of fixed assets…
a) Due to normal wear and tear
b) Due to abnormal wear and tear
c) Due to foreseen obsolescence
d) Due to normal wear and tear and foreseen obsolescence

Due to normal wear and tear and foreseen obsolescence

Q.17 Value of output is equal to
a) Sales+ Change in Stock b) Sales + Closing Stock
c) Sales + Opening Stock d) Sales- opening Stock

Sales + Change in stock

Q.18 Income of the Family is the example of which variable?
a) Stock Variable
b) Flow Variable
c) Both stock and flow
d) Neither Stock nor flow

Flow Variable

Q.19 Which of the following is not a flow variable?
a) Income
b) Capital Formation
c) Supply of Money in a country
d) Leakage of water from a tank

Supply of water in a country

Q.20 Which of the following is not included in estimation of NI?
a) Subsidies Lunch
b) Old Age Pension
c) Free Medical Facilities served in office to employees
d) Construction of a House

Old Age Pension

Whoever needs to take the CBSE Class 12 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 12 Economics Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These National Income Accounting Class 12 MCQ are ready by the subject specialists themselves.

True/False

Question 1. Increase in stock of goods held by a consumer will contribute to capital formation.

FALSE: any increase in goods of stock held by consumers does not contribute to capital formation as it is assumed that such goods are consumed, the moment are purchased.

Question 2. Nominal GDP can never be less than real GDP.

FALSE: nominal GDP can be less than the real GDP, if price in the current year are less than the price in the base year.

Question 3. Productions of services for self-consumption are not included in national income.

TRUE: Such services are not included in national income as it is difficult to ascertain their market value and they are not rendered for earning income.

Question 4. Good produced for self-consumption will be included in national income.

TRUE: such goods contribute to the current output and their imputed value will be included in national income.

Question 5. Gross domestic capital formation is always greater than gross fixed capital formation.

FALSE: gross domestic capital formation can be less than gross fixed capital formation if change in stock is negative.

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