CBSE Class 12 Economics Set 1 - (58/5/1) Question Paper 2026 is available for download here. CBSE conducted the Class 12 Economics exam on March 18, 2026, from 10:30 AM to 1:30 PM. The Economics theory paper is of 80 marks, and the internal assessment is of 20 marks.
Also Check: CBSE Class 12 Question Paper 2026 (All Subjects)
The question paper has 34 questions, all compulsory, for 80 marks:
- Section A is Macro Economics and Section B is Indian Economic Development
- 20 multiple choice questions of 1 mark each
- 4 Short Answer Type-I questions of 3 marks each (60 to 80 words)
- 6 Short Answer Type-II questions of 4 marks each (80 to 100 words)
- 4 Long Answer type questions of 6 marks each (100 to 150 words)
- There is no overall choice, but internal choice is given in a few questions
CBSE Class 12 Economics Set 1 - (58/5/1) Question Paper 2026 with Solution PDF
| CBSE Official PDF | CD PDF | CD PDF with Solutions |
|---|---|---|
| Download official PDF 0.91 MB | Download Collegedunia PDF 0.80 MB | – |
CBSE Class 12 Economics 2026 Set 1 (58/5/1) Questions with Solutions
“The Ministry of Statistics and Programme Implementation (MoSPI) is underway to revise the base year of Gross Domestic Product (GDP). The base year is revised periodically to better capture the structural changes happening in the economy. The proposed new base year for the GDP is 2022 – 23.”
The step taken by the Government of India is for revision of __________ Gross Domestic Product (GDP), as it is measured at __________ prices.
(Choose the correct option to fill in the blanks)
With reference to the given diagram, OL indicates __________ .
(Choose the correct option to fill in the blank)
(i) Autonomous Consumption
(ii) Autonomous Investment
(iii) Induced Consumption
(iv) Induced Investment
Money supply is a __________ variable, as it refers to the total volume of money held by the __________ at a particular point of time.
(Choose the correct option to fill in the blanks)
Under the flexible exchange rate system, the exchange rate is determined by the __________ .
(i) Government
(ii) Demand and supply
(iii) Intervention of the Central Bank
(Choose the correct option to fill in the blank)
Following are the steps to measure National Income (NNPFC) by Value Added method :
(i) Calculate Domestic Income (NDPFC) by subtracting Depreciation and Net Indirect Taxes from GDPMP.
(ii) Estimate GDPMP by adding GVA of each firm.
(iii) Estimate and add Net Factor Income from Abroad to NDPFC to arrive at NNPFC.
(iv) Identify and classify the production units into primary, secondary and tertiary sector.
The correct order of arrangement of steps would be :
(Choose the correct option)
An economy may operate at a level below full employment due to a deficiency in Aggregate Demand (AD) leading to a/an __________ employment equilibrium.
(i) Full
(ii) Over
(iii) Under
(Choose the correct option to fill in the blank)
Read the following statements carefully :
Statement I : Positive externalities refer to the benefits a firm/an individual provides to another for which they are paid.
Statement II : In case of positive externalities, Gross Domestic Product (GDP) of an economy might lead to an overestimation of the actual welfare.
In the light of the given statements, choose the correct option from the following :
Suppose, for a hypothetical economy, Reserve Ratio (RR) decreases from 25% to 20%, the total deposits would __________ to ₹ __________ , if primary deposits are ₹ 1,000.
(Choose the correct option to fill in the blanks)
Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below :
Assertion (A) : Transfers from Abroad (remittances) are to be recorded on the credit side of capital account of Balance of Payments (BoP).
Reason (R) : All the transactions that lead to inflow of foreign currency from the rest of the world are recorded on the credit side of Balance of Payments (BoP).
Liabilities for any firm are its debt/what it owes to others. Contrary to that, for a bank __________ are the main liability.
(Choose the correct option to fill in the blank)
Estimate the value of ‘Income from Property and Entrepreneurship’ on the basis of the given data :
| S. No. | Items | Amount (in ₹ crore) |
|---|---|---|
| (i) | Wages and salaries | 1,300 |
| (ii) | Rent | 700 |
| (iii) | Employer’s contribution to social security schemes | 300 |
| (iv) | Royalty | 200 |
| (v) | Corporate tax | 100 |
| (vi) | Interest | 350 |
| (vii) | Consumption of fixed capital | 50 |
| (viii) | Dividends | 150 |
| (ix) | Savings of private corporate sector | 200 |
“Repo Rate and Bank Rate are two different measures, but a change in either of them may have the similar implication on the money supply in an economy.”
Defend or refute the given statement, giving valid explanation in support of your answer.
“The Reserve Bank of India (RBI) is the sole authority for issuing currency notes in India, with an exception of ₹ 1 denomination that is issued by the Ministry of Finance.”
Do you agree with the given statement ? Explain the rationale behind the monopoly enjoyed by the Reserve Bank of India (RBI) on this front.
Differentiate between autonomous transactions and accommodating transactions in Balance of Payments (BoP).
A company named Tech Info Ltd. manufactures printers. The company purchases machinery from Germany to manufacture printers. These printers are sold in the domestic and foreign markets to households and dealers. The machinery purchased and printers manufactured, both can be classified as final goods.
Do you agree with the given statement ? Give valid arguments in support of your answer.
Identify any two components of Gross Investments indicated in the given image.
Comprehension:
Read the following text carefully :
“With an objective to improve the growth momentum by stimulating domestic private consumption and investment, the Reserve Bank of India
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(RBI) announced a reduction in Cash Reserve Ratio (CRR) by 100 basis points (1%).”Based on the above text and common understanding, answer the following questions :
Explain the likely cause behind the step taken by the Reserve Bank of India (RBI).
Briefly explain the impact of the step taken by the Reserve Bank of India (RBI) on the Aggregate Demand (AD).
Assume, for a hypothetical economy, the following data is given :
| Income (Y) | Consumption (C) | Investment (I) | Aggregate Demand (AD) |
|---|---|---|---|
| 0 | 40 | 20 | 60 |
| 100 | 120 | 20 | – |
| 200 | 200 | 20 | – |
| 300 | 280 | 20 | 300 |
Calculate the missing values in the given schedule.
Assume, for a hypothetical economy, the following data is given :
| Income (Y) | Consumption (C) | Investment (I) | Aggregate Demand (AD) |
|---|---|---|---|
| 0 | 40 | 20 | 60 |
| 100 | 120 | 20 | – |
| 200 | 200 | 20 | – |
| 300 | 280 | 20 | 300 |
Define the term ‘Effective Demand’.
Assume, for a hypothetical economy, the following data is given :
| Income (Y) | Consumption (C) | Investment (I) | Aggregate Demand (AD) |
|---|---|---|---|
| 0 | 40 | 20 | 60 |
| 100 | 120 | 20 | – |
| 200 | 200 | 20 | – |
| 300 | 280 | 20 | 300 |
On the basis of the given data, it can be said that the equilibrium level of income is 200.
Do you agree ? If not, explain the adjustment mechanism that may take place to attain equilibrium level of income.
Suppose, in an economy, every ₹ 1 increase in investment expenditure leads to an increase of ₹ 4 in the National Income.
Calculate the following :
Value of Investment Multiplier (K).
Suppose, in an economy, every ₹ 1 increase in investment expenditure leads to an increase of ₹ 4 in the National Income.
Calculate the following :
Change in consumption expenditure, if the income changes from ₹ 400 to ₹ 500.
Suppose, in an economy, every ₹ 1 increase in investment expenditure leads to an increase of ₹ 4 in the National Income.
Calculate the following :
“Sum of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) is always equal to one.”
Justify the given statement with the help of a suitable argument.
Comprehension:
Refer the given text carefully: According to the Economic Survey 2024-25, the government budget’s projections for the fiscal year 2025-26 indicate that gross direct tax revenue will rise by 12.7%, while gross indirect tax collections are expected to grow by 8.3% relative to FY 2024-25. Direct taxes include income tax and corporate tax, reflecting earnings and profits of households and firms. It plays a key role in revenue growth of the government. Indirect taxes encompass Goods and Services Tax (GST), custom duties and other transaction-based levies. Higher growth rate projected for direct taxes suggests a push to enhance tax buoyancy through improved
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compliance and reforms. On the other hand, indirect taxes are expected to benefit from consumption trends and Goods and Services Tax (GST) administration improvements. The balance tax strategy aims to mobilize resources while supporting fiscal consolidation and sustainable economic growth. On the basis of the above passage and common understanding, answer the following questions: (i) Differentiate between the two types of taxes indicated in the above text, with suitable examples. (ii) Elaborate the likely consequences of the tax projections made by the government.Differentiate between the two types of taxes indicated in the above text, with suitable examples.
Elaborate the likely consequences of the tax projections made by the government.
Working persons engaged in various industrial divisions can be classified into three major sectors — Primary sector, secondary sector and tertiary sector.
Identify, which of the following option demonstrates the primary sector.
Read the following statements carefully :
Statement I : The colonial government had dual objectives behind the systematic deindustrialization of India.
Statement II : The British reduced India to a mere importer of raw materials for the its modern industries.
In the light of the given statements, choose the correct option from the following :
The following table shows the distribution of population and workers in a village :
| Total population | Number of people who are willing and able to work | Number of people who are employed |
|---|---|---|
| 2000 | 1200 | 800 |
The Worker – Population ratio for village would be __________ %.
(Choose the correct option to fill in the blank)
Identify, which of the following is not a strategy of sustainable development.
(Choose the correct option)
In the rural areas, diversification towards new areas such as livestock, fisheries and other non-agricultural activities is necessary to __________ .
(i) Reduce the risk from agricultural sector
(ii) Provide unsustainable livelihood options
(iii) Provide supplementary employment
(Choose the correct option to fill in the blank)
Self-Help Groups (SHGs) have emerged to fill the gap in the formal credit system as they __________ .
(Choose the correct option to fill in the blank)
__________ was set up by the Government of India in 1950 to formulate plans for the most effective and balanced utilisation of resources.
(Choose the correct option to fill in the blank)
The export surplus during the colonial rule was used by the Britishers to __________ .
(i) Bring gold and silver to India
(ii) Incur expenses on war
(iii) Import invisible items
(Choose the correct option to fill in the blank)
Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below :
Assertion (A) : India is a member of various regional and economic groupings such as BRICS, G20, etc.
Reason (R) : Membership of economic and regional groupings helps a nation to understand their strengths and weaknesses in comparison to other nations.
In 2009, the Government of India came up with the __________ to make free education, a fundamental right for all children in the age group of 6 – 14 years.
(Choose the correct option to fill in the blank)
"At the time of independence, both India and Pakistan inherited similar colonial economic structures. Both the nations adopted many similar economic planning strategies."
Explain any two such similarities in the developmental path of India and Pakistan.
“In 1958, China launched the Great Leap Forward (GLF) campaign with a definite aim.”
State the rationale behind the introduction of the Great Leap Forward (GLF) campaign.
“In 1958, China launched the Great Leap Forward (GLF) campaign with a definite aim.”
State any two failures of the Great Leap Forward (GLF) campaign.
Study the following image carefully :
Interpret the given image and comment upon the phenomenon of environmental crisis as a result of changed production and consumption patterns.
On the basis of the given data, comment upon the annual growth of Gross Domestic Product (GDP) of India and China.
| Annual Growth of Gross Domestic Product (%), 1980 – 2017 | |||
|---|---|---|---|
| Country | 1980 – 90 | 2015 – 2017 | 2022 |
| India | 5.7 | 7.3 | 7.0 |
| China | 10.3 | 6.8 | 3.0 |
| Pakistan | 6.3 | 5.3 | 4.8 |
Rayansh works as a teacher in a school. He receives a fixed monthly salary, social security benefits, paid leave and medical allowances. His friend Mohan works at a small toy shop. He has very little income, he does not have access to provident fund, paid leave or health insurance.
Classify the types of sectors Rayansh and Mohan are working in and highlight the distinction between the two sectors.
Explain ‘Expenditure on migration’ as a source of human capital formation.
“The Industrial Policy Resolution (IPR), 1956 classified all the industries based on state ownership and control in various categories.”
Do you agree with the above statement ? Give valid reasons in support of your answer.
“The economic reforms of 1991 adversely affected the Indian agriculture sector.”
Do you agree with the above statement ? Give valid reasons in support of your answer.
“The Government of India may further divest its stake in Life Insurance Corporation (LIC) in the current financial year.”
In the light of economic reforms since 1991, identify the policy and define the step taken by the government.
“India adopted an inward-looking trade strategy during the planning period.”
State any two reasons behind the adoption of this policy.
“India adopted an inward-looking trade strategy during the planning period.”
Briefly describe any two ways in which the government implemented this policy.
Comprehension:
Read the following passage carefully :
Paramparagat Krishi Vikas Yojana (PKVY)
Paramparagat Krishi Vikas Yojana (PKVY) aims at promoting organic farming, in turn resulting in improvement of soil health. It promotes Participatory Guarantee System – India (PGS – India), a simple certification system, where farmers and consumers participate directly in the process.
The scheme proposes to cover additional 6,00,000 hectare area under organic farming till 2025 – 26. The objective is to produce agricultural products free from chemicals and pesticide residues by adopting eco-friendly, low-cost technologies.
Key focus areas of Paramparagat Krishi Vikas Yojana (PKVY) :
- Promote natural
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resource based integrated and climate resilient sustainable farming systems that ensure maintenance and increase of soil fertility, natural resource conservation, on farm nutrients recycling and minimising dependence on external inputs. - Reduce farming costs and increase farmers’ income through sustainable organic practices.
- Chemical-free and nutritious food for human consumption.
- Protect the environment by using low-cost, traditional and farmer-friendly technologies.
- Help farmers become entrepreneurs through direct market linkages with local and national markets.
On the basis of the above passage and common understanding, answer the following questions :
Define Organic Farming. Explain any two merits of organic farming.
Explain any two thrust areas of Paramparagat Krishi Vikas Yojana (PKVY) in organic farming.
CBSE Class 12 Economics Question Paper Pattern and Marking Scheme
The CBSE Class 12 Economics 2026 theory paper is of 80 marks and has 34 questions, all compulsory, in two sections: Section A (Macro Economics) and Section B (Indian Economic Development). There is no overall choice, but an internal choice (OR) is given in a few questions. The tables below give the paper pattern and the marking rules from the official CBSE question paper and marking scheme.
CBSE Class 12 Economics Question Paper Pattern 2026
| Section | Questions | Question Type | Marks per Question | Marks |
|---|---|---|---|---|
| Section A - Macro Economics | Q1 - Q10 | Multiple choice questions (MCQs) | 1 | 10 |
| Section A - Macro Economics | Q11 - Q12 | Short Answer Type-I (60 to 80 words) | 3 | 6 |
| Section A - Macro Economics | Q13 - Q15 | Short Answer Type-II (80 to 100 words) | 4 | 12 |
| Section A - Macro Economics | Q16 - Q17 | Long Answer type (100 to 150 words) | 6 | 12 |
| Section B - Indian Economic Development | Q18 - Q27 | Multiple choice questions (MCQs) | 1 | 10 |
| Section B - Indian Economic Development | Q28 - Q29 | Short Answer Type-I (60 to 80 words) | 3 | 6 |
| Section B - Indian Economic Development | Q30 - Q32 | Short Answer Type-II (80 to 100 words) | 4 | 12 |
| Section B - Indian Economic Development | Q33 - Q34 | Long Answer type (100 to 150 words) | 6 | 12 |
| Total | 34 questions | 80 |
CBSE Class 12 Economics Marking Scheme 2026
| Marking point | How it is applied |
|---|---|
| Value-point marking | Marks are awarded against the value points given in the official marking scheme; for a question with parts, marks are awarded for each part and then totalled. |
| Own expression | The marking scheme carries suggested value points only. A correct answer in the student's own words is awarded due marks. |
| Competency-based questions | If a competency-based answer is not from the marking scheme but shows the correct competency, due marks are awarded. |
| Errors | An error is penalised only once; no marks are deducted for its cumulative effect. |
| Incorrect answer | A totally incorrect answer is awarded zero (0) marks. |
| Extra question | If a student attempts an extra question, the answer deserving more marks is retained and the other is scored out. |
| Scale of marks | The full scale of 0 to 80 marks is used and full marks are awarded whenever the answer deserves them. |
CBSE Class 12 Economics Unit-Wise Weightage
| Part | Unit | Marks |
|---|---|---|
| Part A - Introductory Macroeconomics | ||
| National Income and Related Aggregates | 10 | |
| Money and Banking | 6 | |
| Determination of Income and Employment | 12 | |
| Government Budget and the Economy | 6 | |
| Balance of Payments | 6 | |
| Total | 40 | |
| Part B - Indian Economic Development | ||
| Development Experience (1947-90) and Economic Reforms since 1991 | 12 | |
| Current Challenges facing Indian Economy | 20 | |
| Development Experience of India - A Comparison with Neighbours | 8 | |
| Total | 40 | |
| Theory Paper | 80 | |
| Project Work | Project File and Viva Voce | 20 |
| Grand Total | 100 |
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