Start learning →

Class 12 Commerce National Income Accounting — practice questions

Explore 12 free National Income Accounting questions in Class 12 Commerce Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise National Income Accounting with Quill →

National Income Accounting questions and exercises with answers

Showing questions 1–12 of 12.

Intermediate goods are excluded from national income to avoid the problem of:Read the answer and worked solution →The value of output minus the value of intermediate consumption is called:Read the answer and worked solution →National income can be measured by the product method, the income method and the:Read the answer and worked solution →The fall in the value of fixed capital due to normal wear and tear is called:Read the answer and worked solution →Gross National Product (GNP) equals GDP plus:Read the answer and worked solution →Net National Product (NNP) is obtained by subtracting ___ from GNP:Read the answer and worked solution →The value of national income measured at the prices actually received by factors of production is the:Read the answer and worked solution →Market price equals factor cost plus indirect taxes minus:Read the answer and worked solution →The circular flow of income shows the flow of goods, services and money between:Read the answer and worked solution →In the expenditure method, national income is found by adding consumption, investment, government spending and:Read the answer and worked solution →The branch of economics concerned with aggregates such as GDP, employment and the price level is:Read the answer and worked solution →Income that households actually have available to spend or save, after taxes, is called:Read the answer and worked solution →

Worked practice questions

Intermediate goods are excluded from national income to avoid the problem of:

  1. taxation
  2. double counting
  3. depreciation
  4. inflation
Show answer and solution

Correct answer: B. double counting

Counting intermediate goods would inflate output — double counting so only final goods count.

Open this question →

The value of output minus the value of intermediate consumption is called:

  1. value added
  2. depreciation
  3. disposable income
  4. national debt
Show answer and solution

Correct answer: A. value added

Value added = value of output − intermediate consumption.

Open this question →

National income can be measured by the product method, the income method and the:

  1. ratio method
  2. expenditure method
  3. balance sheet method
  4. sampling method
Show answer and solution

Correct answer: B. expenditure method

The three methods: product (value added), income, and expenditure.

Open this question →

How to practise

  1. Choose a National Income Accounting question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Economics topics

Government Budget and the EconomyIntroduction to EconomicsMoney and Banking