{"id":17624,"date":"2022-05-25T18:30:37","date_gmt":"2022-05-25T13:00:37","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=17624"},"modified":"2022-05-17T11:05:42","modified_gmt":"2022-05-17T05:35:42","slug":"mcq-questions-for-class-12-economics-chapter-2-part-a","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-economics-chapter-2-part-a\/","title":{"rendered":"MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers"},"content":{"rendered":"

Students who are searching for NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Economics with Answers<\/a>. You can also verify your answers from our provided National Income Accounting Class 12 MCQs Questions with Answers. So, ace up your preparation with MCQ on National Income Accounting Class 12 Objective Questions.<\/p>\n

National Income Accounting Class 12 MCQs Questions with Answers<\/h2>\n

Choose the correct alternative.<\/span><\/p>\n

Question 1.
\nDepreciation of fixed capital assets refers to
\n(a) Normal wear and tear
\n(b) Foreseen obsolescence
\n(c) Normal wear and tear and foreseen obsolescence
\n(d) Unforeseen obsolescence<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Normal wear and tear and foreseen obsolescence<\/p>\n<\/details>\n

\n

Question 2.
\nNational income is the sum of factor income accruing to
\n(a) Nationals
\n(b) Economic territory
\n(c) Residents
\n(d) Both residents and non-residents<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Residents<\/p>\n<\/details>\n

\n

Question 3.
\nGNP at MP =
\n(a) GDPMP<\/sub> – Depreciation
\n(b) GDPMP<\/sub> + Depreciation
\n(c) GDPMP<\/sub> \u00f7 Depreciation
\n(d) GDPMP<\/sub> + Net factor income from abroad<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) GDPMP<\/sub> + Net factor income from abroad<\/p>\n<\/details>\n

\n

Question 4.
\nNDPMP<\/sub> =
\n(a) GDPMP<\/sub> – Depreciation
\n(b) GDPFC<\/sub> + Net factor income from abroad
\n(c) NNPFC<\/sub> + Net indirect taxes
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) GDPMP<\/sub> – Depreciation<\/p>\n<\/details>\n

\n

Question 5.
\nNNPMP<\/sub> =
\n(a) GNPMP<\/sub> – Depreciation
\n(b) NDPMP<\/sub> + Net factor income from abroad
\n(c) NNPFC<\/sub> + Net indirect taxes
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of these<\/p>\n<\/details>\n

\n

Question 6.
\nGDPFC<\/sub> =
\n(a) GDPMP<\/sub> – Net indirect taxes
\n(b) GDPMP<\/sub> + Net indirect taxes
\n(c) GDPMP<\/sub> + Subsidies
\n(d) GDPMP<\/sub> – Indirect taxes<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) GDPMP<\/sub> – Net indirect taxes<\/p>\n<\/details>\n

\n

Question 7.
\nNDPFC<\/sub> =
\n(a) GDPFC<\/sub> – Indirect taxes
\n(b) GDPFC<\/sub> – Depreciation
\n(c) GDPFC<\/sub> + Economic subsidy
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) GDPFC<\/sub> – Depreciation<\/p>\n<\/details>\n

\n

Question 8.
\nNNPFC<\/sub>\u00a0=
\n(a) GNPFC<\/sub> – Depredation
\n(b) NNPMP<\/sub> + Economic subsidy – Indirect taxes
\n(c) NDPMP<\/sub> + Net factor income from abroad
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of these<\/p>\n<\/details>\n

\n

Question 9.
\nAccounting of National Income at constant prices is known as
\n(a) Money income
\n(b) Real income
\n(c) Current income
\n(d) Domestic income<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Real income<\/p>\n<\/details>\n

\n

Question 10.
\nWhich of the following items are excluded from GNP measurement?
\n(a) Purely financial transactions
\n(b) Transfer of used goods and non-market goods and services
\n(c) Illegal activities and the value of leisure
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of these<\/p>\n<\/details>\n

\n

Fill in the blanks with the correct word.<\/span><\/p>\n

Question 1.
\nReal National Income is the value of current income at ______ year prices.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: base<\/p>\n<\/details>\n

\n

Question 2.
\nFlow is a ______ concept.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: dynamic<\/p>\n<\/details>\n

\n

Question 3.
\n______ flow shows the flow of goods and services across different sectors.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Real<\/p>\n<\/details>\n

\n

Question 4.
\n______ has no time dimension.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Stock<\/p>\n<\/details>\n

\n

Question 5.
\n_______ has a time dimension.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Row<\/p>\n<\/details>\n

\n

Question 6.
\nThe production method is also known as the _______ method.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: value-added<\/p>\n<\/details>\n

\n

Question 7.
\nThe weights are ______ in C.P.I.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: constant<\/p>\n<\/details>\n

\n

Question 8.
\nGDP deflator does not include prices of ______ goods.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: imported<\/p>\n<\/details>\n

\n

State whether the following statements are True or False. Give reasons.<\/span><\/p>\n

Question 1.
\nReal flow shows the flow of money across different sectors.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False.
\nReal flow shows the flow of goods and services across different sectors.<\/p>\n<\/details>\n

\n

Question 2.
\nStock is a dynamic concept.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False.
\nStock is a static concept whose magnitude is measured at a particular point in time.<\/p>\n<\/details>\n

\n

Question 3.
\nNational Income includes only transfer incomes, not the factor incomes.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False.
\nNational Income includes factor incomes, not the transfer incomes.<\/p>\n<\/details>\n

\n

Question 4.
\nImport is leakage of the circular flow of income.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True.
\nImports lead to the withdrawal of income from the process circular flow.<\/p>\n<\/details>\n

\n

Question 5.
\nThe value of intermediate goods is not included in the estimation of value-added.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True.
\nOnly the value of output added at each stage of production is included in the estimation of value-added.<\/p>\n<\/details>\n

\n

Question 6.
\nA part of the capital gets consumed during the year due to wear and tear is called value-added.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False.
\nA part of the capital that gets consumed during the year due to wear and tear is called depreciation.<\/p>\n<\/details>\n

\n

Match the alternatives given in Column II with respective terms in Column I.<\/span><\/p>\n

Question 1.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Column I<\/td>\nColumn II<\/td>\n<\/tr>\n
(i) Flow variable<\/td>\n(a) Value Added Method<\/td>\n<\/tr>\n
(ii) Stock variable<\/td>\n(b) Include in National Income<\/td>\n<\/tr>\n
(iii) Product method<\/td>\n(c) Measured over a specific period of time<\/td>\n<\/tr>\n
(iv) NDPFC<\/sub> =<\/td>\n(d) Measured at a specific point in time<\/td>\n<\/tr>\n
(v) GDPFC<\/sub> =<\/td>\n(e) NDPFC<\/sub> – Indirect Taxes + Subsidies<\/td>\n<\/tr>\n
(vi) Saving<\/td>\n(f) Stock Concept<\/td>\n<\/tr>\n
(vii) Wealth<\/td>\n(g) NDPFC<\/sub> + Depreciation<\/td>\n<\/tr>\n
(viii) Final expenditure method<\/td>\n(h) Flow Concept<\/td>\n<\/tr>\n
(ix) Windfall gains<\/td>\n(i) Consumption and Investment Method<\/td>\n<\/tr>\n
(x) Family members working free on the family-owned farm<\/td>\n(j) Don\u2019t include in National Income<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nAnswer<\/span><\/summary>\n

Answer:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Column I<\/td>\nColumn II<\/td>\n<\/tr>\n
(i) Flow variable<\/td>\n(c) Measured over a specific period of time<\/td>\n<\/tr>\n
(ii) Stock variable<\/td>\n(d) Measured at a specific point in time<\/td>\n<\/tr>\n
(iii) Product method<\/td>\n(a) Value Added Method<\/td>\n<\/tr>\n
(iv) NDPFC<\/sub> =<\/td>\n(e) NDPMP<\/sub> – Indirect Taxes + Subsidies<\/td>\n<\/tr>\n
(v) GDPFC<\/sub> =<\/td>\n(g) NDPFC<\/sub>\u00a0+ Depreciation<\/td>\n<\/tr>\n
(vi) Saving<\/td>\n(h) Flow Concept<\/td>\n<\/tr>\n
(vii) Wealth<\/td>\n(f) Stock Concept<\/td>\n<\/tr>\n
(viii) Final expenditure method<\/td>\n(i) Consumption and Investment Method<\/td>\n<\/tr>\n
(ix) Windfall gains<\/td>\n(j) Don\u2019t include in National Income<\/td>\n<\/tr>\n
(x) Family members working free on the family-owned farm<\/td>\n(b) Include in National Income<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/details>\n
\n

Use the above-provided NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download and get a good grip on the fundamentals. Need any support from our end during the preparation of CBSE Class 12 Economics National Income Accounting MCQs Multiple Choice Questions with Answers then leave your comments below. We\u2019ll revert back to you soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Students who are searching for NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Economics with Answers. You can also verify your answers from our provided National …<\/p>\n

MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers<\/span> Read More »<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[35],"tags":[],"yoast_head":"\nMCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers - MCQ Questions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-economics-chapter-2-part-a\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers - MCQ Questions\" \/>\n<meta property=\"og:description\" content=\"Students who are searching for NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download are compiled here to get good practice on all fundamentals. 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