Top 50 CBSE Class 12 Economics MCQs with Answers for High Score in Pre-Board Exam 2026

Top 50 CBSE Class 12 Economics MCQs with Answers: Pre-board is happening for the third time before the commencement of CBSE board exams for class 12th. Students are preparing well for the exam through the help of model papers, and CBSE materials. As board exams are starting soon, appearing in pre-board exams will help students practice well for the exam. As a trial exam, it will provide an understanding of how papers will be set, marking style and aggregate evaluation of their overall performance. 

Here you can find MCQ questions to solve for the Economics paper as most of the paper’s weightage depends on objective type and competency based questions. So, it will be essential for class 12th students to practice MCQs as much to get fluent in solving the questions during the exam.

(Note: The questions will be updated on a regular basis, students are advised to keep checking the article to solve the remaining MCQs) 

Check for relevant links: CBSE 12th Date Sheet 2026: Download FINAL Class 12 Schedule PDF; Check Exam Day,Date and Time

Top 50 CBSE Class 12 Economics MCQs with Answers: Key Highlights

• Students can find 50 MCQ questions to prepare for the Economics Pre-board exams. 

• Covers questions from each chapter from the subject.

• Also access the solutions for MCQs to evaluate your performance.

Top 50 MCQs for Class 12 Economics with Answers

Given here is a long-list of MCQs for Class 12 Economics with Answers. Students are advised to practice from these questions as it covers almost all chapters in Economics. This will also help you revise chapters periodically. 

1. If the money value of final goods and services produced by normal residents of a country in a year, measured at the prices of the current year, then it is called as:

(a) Real GDP 

(b) GDP at constant Price 

(c) National Product 

(d) GDP at current price

2. Depreciation means:

(a) Destruction of a factory due to fire 

(b) Loss in fixed assets due to normal wear and tear 

(c) Loss in fixed assets due to earthquake 

(d) Shut-down of a factory due to strike

3. Domestic income is greater than National Income if

(a) NFIA is positive 

(b) NFIA is zero 

(c) NFIA is negative 

(d) None of these.

4. Medicine supply to the Earthquake victim in India by British Government is :

(a) Factor Income 

(b) Capital Transfer 

(c) Net factor Income from abroad

(d) Current Transfer.

5.“Real Gross Domestic Product (GDP) is estimated to attain a level of ₹ 173.82 lakh crore in the year 2023-24. The corresponding Nominal GDP is estimated

to stand at ₹ 295.36 lakh crore in the same year.”

On the basis of the given data, the value of GDP deflator would be _____.

(Choose the correct option to fill up the blank)

A. 295.36 

B. 58.85

C. 169.92 

D. 173.82

6. On the basis of the given information, Money Supply (M1) would be ₹ _____ crore. (Choose the correct option) S.No. Components Amount (in ₹ crore) (i) Currency held by the Public 320 (ii) Net Demand Deposits with Commercial Banks 260 (iii) Net Time Deposits with Commercial Banks 200 Options: 

A. 580 

B. 780 

C. 675 

D. 875

7. Which of the following is the relation that the law of demand defines?

a) Income and price of a commodity

b) Price and quantity of a commodity

c) Income and quantity demanded

d) Quantity demanded and quantity supplied

8. What do you mean by Gross National Product?

a) The total value of goods and services produced in the country

b) The total value of all the transactions in the country

c) The depreciation in the total value of goods and services produced in the country

d) The total value of goods and services produced in the country and the net factor income from abroad

9. Why is the unemployment rate low in India statistically?

Unemployment is calculated only from the age group of 15 years to 59 years.

Unemployment survives only when an individual cannot find a job.

People are not interested in working outside the domestic area.

Choose the correct option.

a) Only 3

b) 2 and 3

c) Only 2

d) All of the above

10. Which of the following is an example of an agricultural price support program?

a) A price ceiling

b) A price floor

c) Equilibrium pricing

d) None of the above

11. Name the architect of Indian Planning :

(a) William Digby          

(b) P.C. Mahalanobis         

(c) V.K.R.V. Rao          

(d) Dadabhai Naoroji

12. Change in stock will be negative when:

(a) Closing Stock > Opening Stock 

(b) Closing Stock < Opening Stock 

(c) Closing Stock = 0 

(d) Opening Stock = 0

13. What is the type of economy in India?

(a) Market Economy          

(b) Mixed Economy

(c) Planned Economy          

(d) Non-Planned Economy

14. NITI (National Institution for Transforming India) Aayog came into being as a successor of Planning Commission in

(a) 2015          

(b) 2016          

(c) 2017          

(d) 2018

15. A farmer wants to take credit to meet his expenditure in agriculture inputs. Which of the following is not an institution he may approach for the credit?

(a) Regional Rural Banks (RRBs)

(b) National Bank for Agriculture and Rural Development

(c) Commercial Banks

(d) Land Development Banks

16. ___________have emerged as an important micro finance system and led to women empowerment.

(a) NABARD           

(b) Self-Help Groups

(c) Commercial Banks           

(d) Land Development Banks

17. Among the following, which one is the correct expansion for HYV?

(a) "High Yielding Variety" of Seeds.          

(b) "Health Yojna Value" of Poor.

(c) "Higher Yorn Variety" of Wool.         

(d) "Heavy Yojna Velocity" of Transport

18. Which of the following is not true about subsidies in agriculture in India?

(a) They encourage adoption of technology

(b) The make required inputs affordable to the farmers

(c) It reduces the cost of production for the producers

(d) It increases the cost of production for the producers

19. Liberation of trade and investment regime was initiated in the Indian Economy in 1991 to provide for:

A. International competitiveness of industrial production.

B. Promotion of competitiveness of local industries.

C. Collection of higher tariffs.

D. Adoption of modern technologies

E. Control over imports.

Choose the correct answer from the options given below:

(a) A, B and C          

(b) B, D and E          

(c) A, B and D          

(d) C, D and E

20. Which of the following is included in national income?

(a) Sale of bonds by a company 

(b) Expenditure on transportation by a firm 

(c) Interest payment on loan by

households to banks 

(d) None of these.

21. Sunil Kumar went to his bank to deposit Rs.10,00,000. On acceptance of this deposit by the ICICI Bank, RBI asked the ICICI bank to keep Rs.2,00,000 as reserves. The amount of Rs.2,00,000 represents

(a) Statutory Liquidity Ratio (SLR)         

(b) Internal Rate of Return (IRR)

(c) Cash Reserve Ratio (CRR)          

(d) Legal Reserve Requirements (LRR)

22. A fictional bank has deposits equal to Rs.5000 crores and reserves equal to Rs.6000 crores. What is the net worth of this bank?

(a) Rs.11,000 crores 

(b) Rs.5000 crores 

(c) (-) Rs.1000 crores 

(d) Rs.1000 crores

23. Money is an asset which can be stored for use in future.‘ In the light of the given statement, identify the function of money.

(a) A measure of value 

(b) A standard of deferred payment

(c) A store of value 

(d) A medium of Exchange

24. A car purchased by a household is a _________.

(a) single use capital good          

(b) single use consumer good

(c) durable consumer good          

(d) semi-durable consumer good

25. Which of the following are correct statements related to stock and flow?

A. Flows are defined over on 1st January

B. Flows are defined over a period of time

C. Flows and stocks are defined as a mutual understanding

D. Stocks are defined from January to December

E. Stocks are defined at a particular point of time

Choose the correct answer from the options given below:

(a) B and E only          

(b) A and D only          

(c) C and E only          

(d) A and B only

CBSE Class 12 Economics MCQ Answer Key Table

Students can use this as sample multiple choice questions shared here to practice well for the pre-board exams along with board exams. As objective type questions carries 25% weightage this will also help analyse which chapters carries most questions in Economics paper. 

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