Class 12 National Income Accounting Mock Test (CBSE)

Topics in National Income Accounting

• Some basic concepts of macroeconomics
• Circular flow of income
• Methods of calculating national income
• The product or value added method
• Expenditure method
• Income method
• Factor cost, basic prices and market prices
• Some macroeconomic identities
• Nominal and real GDP
• GDP deflator
• GDP and welfare

National Income Accounting practice questions with answers

1. Q1Multiple choice·1 mark
   Which of the following components is included while estimating National Income by the expenditure method?

   1. (a)Intermediate consumption by a manufacturing firm
   2. (b)Government final consumption expenditure
   3. (c)Expenditure on the purchase of second-hand goods
   4. (d)Purchase of existing shares in the stock market
   Show answer and step marks

   1. Correct option: (b) Government final consumption expenditure+1

   Answer: (b)
2. Q2Multiple choice·1 mark
   Which of the following is a component of Operating Surplus under the income method of calculating national income?

   1. (a)Mixed income of self-employed
   2. (b)Wages and salaries in cash
   3. (c)Employers' contribution to social security schemes
   4. (d)Royalty
   Show answer and step marks

   1. Correct option: (d) Royalty+1

   Answer: (d)

More Class 12 Economics mock tests