MCQ Question for Class 12 Economics Chapter 8 National Income Accounting

Check the below NCERT MCQ Class 12 Economics Chapter 8 National Income Accounting with Answers available with PDF free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below National Income Accounting Class 12 Economics MCQs Questions with answers which will help students to revise and get more marks in exams

National Income Accounting Class 12 Economics MCQ Questions with Answers

Refer below for MCQ Class 12 Economics Chapter 8 National Income Accounting with solutions. Solve questions and compare with the answers provided below

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

Question. 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

Question. 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

Question. 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

Question. 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.

Question. 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

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

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

Question. Financial help to a victim is:
a) tranfer payment
b) factor income
c) net factor income from abroad
d) none of these

Question. The impact of an externality is:
a) Positive
b) Negative
c) either positive or negative
d) neither positive nor negative

Question. own account production of goods is included in national income because:
a) goods are tangible
b) their valuation is possible
c) goods are more productive than services
d) none of these

Question. Which of the following is not an element of final consumption expenditure?
a) Household expenditure on food
b) Government final consumption expenditure
c) Household expenditure on education
d) Expenditure on raw material

Question. “operating surplus” refers to:
a) Income from property
b) Income from entrepreneurship
c) Income from property and entrepreneurship
d) None of these

Question. 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

Question. Which of the following is an example of Non-durable good?
a) Milk
b) Bread
c) Both (a) and (b)
d) Clothe

Question. If factor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement?
a) National income = Domestic Income
b) NDP at FC + Depreciation = GNP at MP
c) NDP at FC + Depreciation = GNP at FC
d) All are valid

Question. Which of the following is a stock?
a) Wealth
b) Saving
c) Exports
d) Profits

Question. Which of the following items is not included while estimating GNP of a country at market price?
a) Sales of the enterprises
b) Indirect taxes
c) Remittances by NRIs
d) Subsidy

Question. Which of the following is not a part of final expenditure?
a) Consumer goods purchased by the government
b) Seeds purchased by the farmers
c) Consumer goods exported to rest of the world
d) Government fixed investment expenditure

Question. 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

Question. Food Items purchased by a production unit are
a) Single-use Capital goods 
b) Durable use consumer goods
c) Single-use consumer goods
d) Durable use capital goods

Question. Money flow involves exchange of:
a) Goods and services
b) Gifts
c) Money
d) None of these

Question. Which of the following are covered under the domestic territory of India?
a) state bank of India in London
b) Google office in India
c) Office of Tata Motors in Australia
d) Russian Embassy in India

Question. Two-sector economy consists of:
a) Households, firms
b) Firms, Foreign sector
c) Households, Government
d) Firms, Government

Question. The subject of the Study of Macro Economics is:
a) The Principle of Consumer
b) The Principle of National Income
c) The Principle of Producer
d) None of these

Question. Final goods refer to those goods which are used either for…..or for…..
a) Consumption, investment
b) Consumption, resale
c) Resale, investment
d) Resale, further production

Question. Which of the following is an example of transfer income?
a) Bonus
b) Unemployement Allowance
c) Compensation from the employer
d) All of the above

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

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

Question. Economic territory of a country is also called :
a) Geographical territory
b) Political frontiers
c) Domestic territory
d) All the above

Question. Study of the general price level is a subject matter of: 
a) macroeconomics
b) microeconomics
c) both (a) and (b)
d) None of these

Question. 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

Question. 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

Question. Commodity service method’ is another name for:
a) Expenditure method
b) Income method
c) Value – added Method
d) None of these

Question. 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

Question. 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

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

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

Question. 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

Question. 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

Question. 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

Question. 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

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

Question. 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

Question. 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

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

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

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

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

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

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