CBSE Class 12 Economics Set 1 - (58/2/1) 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 - (58/2/1) Question Paper 2026 with Solution PDF
| CBSE Official PDF | CD PDF | CD PDF with Solutions |
|---|---|---|
| Download official PDF 1.58 MB | Download Collegedunia PDF 0.92 MB | – |
CBSE Class 12 Economics 2026 Set 1 (58/2/1) Questions with Solutions
Choose the correct consumption function from the options given below with reference to the illustrated diagram.
Income generated from Aircrafts of Air India operating between Canada and England would be added to the domestic income (NDPFC) of __________.
(Choose the correct option to fill in the blank)
Identify that function of money which has effectively solved the problem of ‘double coincidence of wants’ in transactions.
Read the following statements carefully:
Statement 1: Under the flexible exchange rate system, a deficit or surplus in the Balance of Payments is automatically corrected.
Statement 2: Under the flexible exchange rate system, there is always a possibility of over/under valuation of currency.
In the light of the above given statements, choose the correct option from the following:
Read the following flow chart carefully and choose the correct option:
The Aggregate Demand (AD) curve lies parallel to consumption curve, indicating that both have __________.
(Choose the correct option to fill in the blank)
Read the following statements carefully :
Statement 1 : Brokerage earned by a dealer of second hand cars is included in the estimation of National Income.
Statement 2 : Imputed value of production for self-consumption is included in National Income.
In the light of the above given statements, choose the correct option from the following :
Sumit deposited ₹ 10 lakh in his savings account. The deposits made by him is a part of __________ in the M1 measure of money supply.
(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) : Increase in exchange rate implies that the price of foreign currency in terms of domestic currency has increased.
Reason (R) : Balance of trade records the inflows and outflows of foreign exchange.
Identify, which one of the following is not a function of Reserve Bank of India as a bank, agent and advisor to the government.
Calculate compensation of employees from the data given below :
| S. No. | Particulars | Amount (in ₹ crore) |
|---|---|---|
| (i) | Interest | 45 |
| (ii) | Profits after tax | 20 |
| (iii) | Consumption of fixed capital | 50 |
| (iv) | Gross Domestic Product at market price (GDPMP) | 200 |
| (v) | Rent | 25 |
| (vi) | Corporate tax | 5 |
| (vii) | Goods and Services tax | 10 |
“When initial deposits in the credit creation process remains same, the total amount of credit created rises as the value of money multiplier increases.”
Defend or refute the above statement with the help of hypothetical numerical example.
“The Central Bank maintains reserves of all commercial banks and use to settle interbank claims.”
Do you agree with the given statement ? Give valid explanation in support of your answer.
Read the following text carefully :
“A country’s total National Income (NI) at the end of the year is ₹ 80,000 crore. During the same year, the Gross Domestic Product (GDP) increased by ₹ 10,000 crore. The depreciation on capital goods was ₹ 2,000 crore and National savings at the end of year is ₹ 15,000 crore. Additionally, country invested ₹ 8,000 crore in new capital goods industries.”
In the light of above text, categorise the items as ‘stock’ or ‘flow’ variables with valid arguments.
The value of Nominal Gross National Product (GNP) of an economy was ₹ 2,500 crore in a particular year. The value of Gross National Product (GNP) of that country during the same year, estimated at the prices of base year was ₹ 3,000 crore.
Estimate the value of Gross National Product (GNP) deflator (in percentage).
The value of Nominal Gross National Product (GNP) of an economy was ₹ 2,500 crore in a particular year. The value of Gross National Product (GNP) of that country during the same year, estimated at the prices of base year was ₹ 3,000 crore.
“The price level has risen between the base year and the year under consideration.” Defend or refute the statement with suitable argument.
Explain the likely impacts of the ‘Make in India’ policy initiated by Government of India on the Balance of Payments (BoP) of India (assuming all other factors constant).
State the meaning of Balance of Payment (BoP) surplus and deficit.
Comprehension:
Read the following text carefully :
“The Reserve Bank of India (RBI) announced a 50 basis point Repo Rate cut to 5.50% from 6%.”
In the light of the given text and common understanding, answer the following questions :
Explain the likely causes and consequences of this step of RBI on the economy.
Estimate the value of subsistence level of consumption expenditure from the following data about an economy which is in equilibrium :
(i) National Income (Y) = ₹ 1,200 crore
(ii) Marginal Propensity to Save (MPS) = 0.20
(iii) Investment Expenditure (Ī) = ₹ 100 crore
“An economy facing an increase in unintended accumulation of inventories would try to reduce Aggregate Demand.” Defend or refute the above statement with valid arguments.
Complete the following table :
| Situation | Change in Investment (ΔI) | Change in Income (ΔY) | Marginal Propensity to Consume (MPC) | Investments Multiplier (K) |
|---|---|---|---|---|
| (a) | 200 | (i) __________ | 0.8 | (ii) __________ |
| (b) | (iii) __________ | 2000 | (iv) __________ | 4 |
| (c) | 1000 | (v) __________ | 0.5 | (vi) __________ |
Identify the monetary measures being referred to in the following statements. Discuss whether the tool would be used during a situation of excess demand or deficient demand.
Selling off government securities (G-Sec) to public by the central bank.
Identify the monetary measures being referred to in the following statements. Discuss whether the tool would be used during a situation of excess demand or deficient demand.
Encourage commercial banks to park their surplus funds with the Reserve Bank of India (RBI).
Comprehension:
Read the following text carefully:
The government has allocated ₹ 16.27 lakh crore for major sectors, ranging from defence to rural development to social welfare to commerce and so on. Government expenditure goes to paying states' share of taxes and duties. Around 19% is spent on interest payments and 16% on central sector schemes, with subsidies, pension and other payments contributing 19%. Government revenue is divided between borrowings and other liabilities, which account for massive 27% of the incoming cash. Income tax revenue of around 19%; Goods and Services Taxes (GST) and other taxes of around 18%; Corporation taxes account for around 17%. The next highest provision on this list is ₹ 2.66 lakh crore for rural development. This will include expenditure on rural infrastructure projects and increased outlay for the popular MGNREGA scheme.
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On the basis of given text and common understanding, answer the following questions:- [(i)] Identify the major sources of government revenue and state what percentage does each one of them contribute.
- [(ii)] Discuss the need for allocating funds among different sectors of the economy.
Identify the major sources of government revenue and state what percentage does each one of them contribute.
Discuss the need to allocate funds among different sectors of the economy.
“In the formative stages of reforms development of credit markets, administrative intervention in interest rates is both necessary and desirable.” Identify the sector under which the aforesaid reform was introduced.
Read the following statements – Assertion and Reason (R). Choose the correct option from those given below: Assertion : The dynamic sub-sectors like agro-processing industries, food processing industries, etc. have potential to create alternative employment opportunities. Reason (R): Men usually seek non-farm jobs, but recently, women have also started looking for such jobs.
The steep Indian education pyramid indicates __________.
(Choose the correct option to fill in the blank)
__________ estimates India’s national and per capita income during the colonial era was considered very significant.
(Choose the correct option to fill in the blank)
From the types of unemployment/employment given in Column-I and corresponding features given in Column-II, choose the correct pair :
| Column – I | Column – II |
|---|---|
| (i) Disguised Unemployment | (a) Concentrated to a given season |
| (ii) Seasonal Unemployment | (b) Marginal productivity is zero |
| (iii) Indirect employment by government | (c) Indian Railways |
| (iv) Direct employment by government | (d) Indian Oil Corporation (IOC) |
Growth of rural economy depends primarily on infusion of __________ to realise higher productivity in agricultural and non-agricultural sectors.
(Choose the correct option to fill in the blank)
Identify the strategy given in the image that can be utilised for sustainable development.
Read the following statements carefully: Statement 1: The option for producing off-season crops are quite restricted in organic farming. Statement 2: Organic agriculture helps in substituting costlier agricultural inputs with locally produced organic inputs. In the light of the above statements, choose the correct option from the following:
China adopted __________ strategy in which farmers and industries bought and sold certain quantities at government fixed prices, while remaining transactions occurred at market prices.
(Choose the correct option to fill in the blank)
Education provides __________.
(Choose the correct option to fill in the blank)
(i) Scientific advancements
(ii) Facilitate inventions and innovations
(iii) Adapting to new technology
“In the late 1970s and 1980s, Pakistan experienced significant changes in its policies, incentives and new investments.”
Do you agree with the above statement ? Justify your answer with valid arguments.
Distinguish between formal and informal sector of employment with the help of suitable examples.
Discuss the long term implications of increased demand for environmental resources exceeding their natural regenerative capacity.
“The Restrictive policies under the colonial government adversely affected the structure, composition and volume of India’s foreign trade.”
Justify the above statement with valid explanation.
Explain the main objectives and impacts of land settlement policies implemented under the British government rule.
Refer the given image carefully :
Distribution of Employment by Gender
Male Workers
Female Workers
Self-employed
Regular Salaried Employees
Casual Wage Labourers
Compare and analyse the distribution of work force with respect to gender.
Explain any two reasons for the slow economic growth in Pakistan.
Read the following text carefully and answer the questions given below :
“In India, high-yielding seed varieties were initially brought to the State of Punjab, Haryana and portions of western Uttar Pradesh.”
Identify the approach initiated by Indian Government in 1966.
Read the following text carefully and answer the questions given below :
“In India, high-yielding seed varieties were initially brought to the State of Punjab, Haryana and portions of western Uttar Pradesh.”
State the primary goal of this approach.
Read the following text carefully and answer the questions given below :
“In India, high-yielding seed varieties were initially brought to the State of Punjab, Haryana and portions of western Uttar Pradesh.”
Describe any two impacts of this approach.
Read the following text carefully and answer the questions given below :
“It is an arrangement in which a firm hires some specialized firm(s) to carry out some of its activities (which were earlier being performed by itself). These service hirings could be from local / international markets.”
Identify the indicated outcome of the globalisation process.
Read the following text carefully and answer the questions given below :
“It is an arrangement in which a firm hires some specialized firm(s) to carry out some of its activities (which were earlier being performed by itself). These service hirings could be from local / international markets.”
State any two factors responsible for making India as an important source of these activities.
Read the following text carefully and answer the questions given below :
“It is an arrangement in which a firm hires some specialized firm(s) to carry out some of its activities (which were earlier being performed by itself). These service hirings could be from local / international markets.”
Explain examples of services that have expanded due to advancements in information technology.
Comprehension:
Read the following text carefully:
The Union Budget 2025-26 proposed a significant package for rural India allocating ₹ 1.88 lakh crore to drive comprehensive development. The budget emphasises on boosting employment, women employment, education and infrastructure in rural areas, reflecting the government's commitment for a stronger, self-reliant rural economy. The extension of Jal-Jeevan Mission until 2028, with focus on achieving 100% rural water supply coverage and enhancing infrastructure maintenance. Broadband connectivity is set to expand under the Bharatnet project, providing internet access to all rural government secondary schools and primary health care centres.
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Also, the budget highlights major rural schemes like the Pradhan Mantri Gram Sadak Yojana which has provided all-weather roads to rural areas. The Pradhan Mantri Grameen Awaas Yojana, which has delivered housing to economically weaker sections. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) continues to secure rural livelihoods with an allocation of ₹ 86,000 crore in FY 2024-25. On the basis of the above text and common understanding, answer the following questions:- [(i)] Explain the significance of rural development.
- [(ii)] Discuss any two policies initiated by Government of India for rural development.
Discuss any two policies initiated by government of India for rural development.
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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