CBSE Class 12 Economics Compartment Set 3 - (58/7/3) Question Paper 2026

1.

In an economy, exclusion of _______ may lead to under estimation of the value of Gross Domestic Product (GDP). 
 

• Barter Transactions
  
• Services provided by family members
  
• Illegal activities
  
• Depreciation of Assets
  

2.

Read the following statements carefully:
Statement 1: Final goods are those goods which normally lose their identity in the production process.
Statement 2: Final goods may get transformed during the consumption process by a consumer.

• Statement 1 is true and statement 2 is false.
  
• Statement 1 is false and statement 2 is true.
  
• Both statements 1 and 2 are true.
  
• Both statements 1 and 2 are false.
  

3.

Read the following statements carefully:
Statement 1: During the British rule in India, the export surplus was utilised to import invisible items from Britain.
Statement 2: Indians paid for the expenses incurred by an office set up by the colonial government in Britain. In the light of above statements, choose the correct option from the following:

• Statement 1 is true and statement 2 is false.
  
• Statement 1 is false and statement 2 is true.
  
• Both statements 1 and 2 are true.
  
• Both statements 1 and 2 are false.
  

4.

Refer the given image carefully:

Explain any two measures that can be taken by the Central Bank to control the indicated macroeconomic problem.

5.

Read the following statements carefully:
Statement 1: Depreciation of currency is an economic action undertaken by the government of a nation under the fixed exchange rate system.
Statement 2: Under the floating exchange rate system, authorities actively intervene in the foreign exchange market by way of maintaining foreign exchange reserves.

• Statement 1 is true and statement 2 is false.
  
• Statement 1 is false and statement 2 is true.
  
• Both statements 1 and 2 are true.
  
• Both statements 1 and 2 are false.
  

6.

Income generated from Aircrafts of Air India operating between Canada and England would be added to the domestic income (NDPFC) of ____________.

• Canada
  
• England
  
• Both Canada and England
  
• India

7.

For a hypothetical economy, assuming there are only two firms (X and Y) with equal values of Gross Value Added (GVA). On the basis of the following data, estimate the values of Domestic Sales by firm X:

8.

Read the following text carefully: To ensure inclusive and quality education for all, the Indian government has launched several important schemes. These schemes aimed at improving access, equity, and learning outcomes, especially among disadvantaged groups. The Right to Education (RTE) Act, passed by the India Parliament on August 4, 2009, guarantees free and compulsory education to every child between 6-14 years of age. It ensures that all children have access to education in neighbourhood schools, until they complete elementary education. Another key initiative is Sarva Shiksha Abhiyan (SSA). It was introduced in 2001. It is one of India’s flagship programmes for the Universalisation of Elementary Education. Digital India Campaign, launched on July 1, 2015, focuses on transforming India into a digitally empowered society by improving mobile and internet connectivity, particularly in rural and remote regions. This initiative supports digital learning & access to educational resources. Through these initiatives, the government strives to create an equitable, accessible & quality driven educational environment for all children, laying a strong foundation for national development. On the basis of the given text and common understanding, answer the following questions: (i) Identify, which law guarantees free and compulsory education upto the age of 14 years. Explain, how does it help in enhancing access to education. (ii) In your opinion, how has the increase in public spending on education contributed to India’s social and economic transformation? Support your answer with valid arguments.

9.

"Under the provisions stated in Section 20 and Section 21 of the Reserve Bank of India (RBI) Act, 1934, the RBI is mandated to handle the banking operations of the Government of India."
In the light of the given statement, elaborate the indicated function of the Reserve Bank of India.

10.

Calculate the value of ‘Rent’ from the following data:

11.

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:

• Statement 1 is true and Statement 2 is false.
  
• Statement 1 is false and Statement 2 is true.
  
• Both Statements 1 and 2 are true.
  
• Both Statements 1 and 2 are false.

12.

In an economy, when __________ is insufficient to achieve the level of output corresponding to the full employment, the difference is termed a deflationary gap. 
 

• ex-ante Aggregate Demand
  
• ex-post Aggregate Demand
  
• ex-ante Aggregate Supply
  
• ex-post Aggregate Supply
  

13.

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 ₹ 2,00,000 crore. Price index for capital goods at the end of year is ₹ 15 lakh crore. Additionally, country invested ₹ 8,000 crore in new capital goods industries.”
In the light of the above text, classify the items as ‘stock’ or ‘flow’ variables with valid arguments. OR 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.

• [(i)] Estimate the Gross National Product (GNP) deflator (in percentage).
• [(ii)] “The price level has risen between the base year and the year under consideration.” Defend or refute the statement with suitable argument.

14.

In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks and Net Time Deposits with Commercial Banks stand at ₹ 1,42,000 crore, ₹ 22,000 crore and ₹ 86,000 crore respectively. The value of Money Supply (M1) would be ₹ _______ crore.

• 2,50,000
  
• 86,000
  
• 1,64,000
  
• 1,42,000
  

15.

Identify which of the following is a `Stock' variable:

• Monthly Salary of a teacher
  
• Distance between Delhi and Mumbai
  
• Annual Interest on savings
  
• Quantity of wheat produced in a year