CBSE Class 12th Economics Exam 2026 is going to be held on 18th March 2026 from 10:30 AM to 1:30 PM across various examination centres. As the exam date approaches, students should focus on quick revision of important concepts from both Macro Economics and Indian Economic Development.
Practicing Multiple Choice Questions (MCQs) is one of the best ways to strengthen conceptual understanding and improve accuracy in the exam. To help students revise effectively, we have compiled the Top 50 Important MCQs with Answers based on the latest CBSE syllabus and previous years’ question papers.
These questions cover key topics such as GDP, inflation, fiscal policy, economic reforms, and development indicators to help students perform well in the board examination.
CBSE Class 12 Economics Top 50 Important MCQs
-
Full employment refers to:
(a) Zero unemployment
(b) Absence of involuntary unemployment
(c) 100% employment
(d) Seasonal unemployment -
Balance of Payments surplus occurs when:
(a) Payments exceed receipts
(b) Receipts exceed payments
(c) Imports exceed exports
(d) None of these -
Which of the following is included in Money Supply (M1)?
(a) Currency with public
(b) Demand deposits with banks
(c) Other deposits with RBI
(d) All of the above -
Consumption function shows relation between:
(a) Income and investment
(b) Income and consumption
(c) Consumption and saving
(d) Income and saving -
MPC + MPS equals:
(a) 0
(b) 1
(c) 10
(d) 100 -
Investment multiplier is calculated as:
(a) 1/MPC
(b) 1/(1–MPC)
(c) MPC/1
(d) 1/MPS -
GDP measures:
(a) Production within domestic territory
(b) Production by citizens only
(c) Global production
(d) Production outside country -
Which institution formulates monetary policy in India?
(a) RBI
(b) World Bank
(c) IMF
(d) SEBI -
Government budget deficit occurs when:
(a) Revenue exceeds expenditure
(b) Expenditure exceeds revenue
(c) Tax equals revenue
(d) None of these -
Autonomous consumption refers to consumption that:
(a) Depends on income
(b) Does not depend on income
(c) Depends on saving
(d) Depends on tax
-
GDP at factor cost =
(a) GDPmp – Net indirect taxes
(b) GDPmp + taxes
(c) GDPmp – depreciation
(d) None -
Which of the following is an indirect tax?
(a) Income tax
(b) GST
(c) Wealth tax
(d) Corporate tax -
Inflation refers to:
(a) Fall in prices
(b) Rise in price level
(c) Stability of prices
(d) None -
Repo rate is the rate at which:
(a) RBI lends to banks
(b) Banks lend to RBI
(c) RBI lends to public
(d) Banks lend to public -
Current account includes:
(a) Export and import of goods
(b) Transfer payments
(c) Services
(d) All of the above -
Which of the following is not a function of money?
(a) Medium of exchange
(b) Store of value
(c) Measure of happiness
(d) Unit of account -
Circular flow of income shows:
(a) Flow of money
(b) Flow of goods and services
(c) Flow between firms and households
(d) All of the above -
Fiscal policy is related to:
(a) Government revenue and expenditure
(b) Monetary control
(c) Foreign trade
(d) Banking -
A deficit budget means:
(a) Revenue > Expenditure
(b) Expenditure > Revenue
(c) Both equal
(d) None -
NNP =
(a) GNP – Depreciation
(b) GDP – Depreciation
(c) GNP + Depreciation
(d) GDP + Depreciation
-
The British developed infrastructure in India mainly for:
(a) Welfare of Indians
(b) Administrative convenience and trade
(c) Education
(d) Social welfare -
Green Revolution was related to:
(a) Industrial production
(b) Agricultural production
(c) Banking reforms
(d) Education -
NABARD mainly deals with:
(a) Agriculture and rural development
(b) Foreign trade
(c) Stock market
(d) Banking regulation -
LPG reforms in India started in:
(a) 1980
(b) 1991
(c) 2000
(d) 2010 -
Human Development Index measures:
(a) Income only
(b) Education only
(c) Health, education and income
(d) Population -
Which country introduced One-Child Policy?
(a) India
(b) Pakistan
(c) China
(d) Bangladesh -
Golden Revolution is related to:
(a) Oil production
(b) Horticulture and honey production
(c) Milk production
(d) Fish production -
Which sector contributes maximum to India’s GDP?
(a) Agriculture
(b) Industry
(c) Service sector
(d) Mining -
Economic reforms include:
(a) Liberalization
(b) Privatization
(c) Globalization
(d) All of the above -
WTO stands for:
(a) World Trade Organization
(b) World Trade Office
(c) World Trade Order
(d) World Tax Organization
-
Sustainable development means:
(a) Development without environmental damage
(b) Development for future generations
(c) Balanced use of resources
(d) All of the above -
Poverty line is determined based on:
(a) Income level
(b) Consumption expenditure
(c) Population
(d) Employment -
Primary sector includes:
(a) Agriculture
(b) Mining
(c) Forestry
(d) All of the above -
Disinvestment refers to:
(a) Selling shares of public sector enterprises
(b) Buying government companies
(c) Tax increase
(d) Bank lending -
Fiscal deficit equals:
(a) Total expenditure – total receipts (excluding borrowings)
(b) Revenue – expenditure
(c) GDP – taxes
(d) Imports – exports -
Microfinance is mainly provided through:
(a) Self Help Groups
(b) RBI
(c) IMF
(d) WTO -
Capital account of BOP includes:
(a) Foreign investments
(b) Loans
(c) Banking capital
(d) All of the above -
Which revolution increased milk production in India?
(a) Green Revolution
(b) White Revolution
(c) Blue Revolution
(d) Golden Revolution -
HDI was developed by:
(a) UNDP
(b) IMF
(c) WTO
(d) World Bank -
Economic growth refers to:
(a) Increase in GDP
(b) Increase in population
(c) Increase in imports
(d) Increase in poverty
-
GDP includes:
(a) Final goods only
(b) Intermediate goods
(c) Both
(d) None -
Depreciation refers to:
(a) Loss in value of capital goods
(b) Increase in price
(c) Loss of income
(d) None -
Net exports =
(a) Exports – Imports
(b) Imports – Exports
(c) Exports + Imports
(d) None -
Supply of money is controlled by:
(a) RBI
(b) Banks
(c) Government
(d) IMF -
Poverty in India is mainly measured by:
(a) NSSO surveys
(b) World Bank
(c) IMF
(d) SEBI -
Economic planning in India started in:
(a) 1947
(b) 1951
(c) 1960
(d) 1970 -
Inflation caused by excess demand is called:
(a) Demand-pull inflation
(b) Cost-push inflation
(c) Hyperinflation
(d) Deflation -
Circular flow model includes:
(a) Households
(b) Firms
(c) Government
(d) All of the above -
The service sector includes:
(a) Banking
(b) Insurance
(c) Transport
(d) All of the above -
Economic development includes:
(a) Growth
(b) Reduction in poverty
(c) Improvement in living standards
(d) All of the above
CBSE Class 10 Economics Top 50 MCQs Answer Key
Check the following table for the CBSE Class 10th Economics Top 50 MCQs Answer Key:
| Question No. | Answer |
| 1 | B |
| 2 | B |
| 3 | D |
| 4 | B |
| 5 | B |
| 6 | B |
| 7 | A |
| 8 | A |
| 9 | B |
| 10 | B |
| 11 | A |
| 12 | B |
| 13 | B |
| 14 | A |
| 15 | D |
| 16 | C |
| 17 | D |
| 18 | A |
| 19 | B |
| 20 | A |
| 21 | B |
| 22 | B |
| 23 | A |
| 24 | B |
| 25 | C |
| 26 | C |
| 27 | B |
| 28 | C |
| 29 | D |
| 30 | A |
| 31 | D |
| 32 | B |
| 33 | D |
| 34 | A |
| 35 | A |
| 36 | A |
| 37 | D |
| 38 | B |
| 39 | A |
| 40 | A |
| 41 | A |
| 42 | A |
| 43 | A |
| 44 | A |
| 45 | A |
| 46 | B |
| 47 | A |
| 48 | D |
| 49 | D |
| 50 | D |
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