Class 12 EconomicsImportant Questions for Board Exams 2025-26
22
Total Questions
18
Long Answer
4
Short Answer
Introduction to Microeconomics
2 questionsWhat is opportunity cost? Explain using a Production Possibility Curve.
State two differences between microeconomics and macroeconomics.
Consumer Equilibrium and Demand
2 questionsState and explain the Law of Diminishing Marginal Utility. What are its exceptions?
What is Price Elasticity of Demand? Calculate it using the percentage method given: price changes from ₹10 to ₹12 and demand falls from 100 to 80 units.
Production and Costs
2 questionsExplain the relationship between Average Cost (AC) and Marginal Cost (MC) with a diagram.
Complete the following table and calculate MC: [TP given at different levels of labour]
The Theory of Firm under Perfect Competition
2 questionsWhat are the conditions for profit maximisation of a firm? Explain with a diagram.
A firm's fixed cost is ₹500 and variable cost is ₹30 per unit. At what price will the firm shut down if market price is ₹25?
Market Equilibrium
2 questionsExplain the effect of simultaneous increase in demand and supply on equilibrium price and quantity.
What is a price ceiling? Give one example and explain its consequences.
Non-competitive Markets — Monopoly and Monopolistic Competition
2 questionsWhat is price discrimination? Under what conditions can a monopolist practise price discrimination?
Distinguish between monopoly and monopolistic competition.
National Income Accounting
2 questionsCalculate NNP_FC from the following data: GDP_MP = ₹5,000 crore, Depreciation = ₹200 crore, NFIA = ₹100 crore, Net Indirect Taxes = ₹300 crore.
Distinguish between final goods and intermediate goods. Why should only final goods be included in GDP?
Money and Banking
2 questionsExplain the process of money creation (credit multiplication) by commercial banks with a numerical example.
The LRR is 20%. A deposit of ₹5,000 crore is made. What is the maximum deposit creation?
Determination of Income and Employment
2 questionsExplain the concept of investment multiplier with a numerical example. What is the value of K when MPC = 0.8?
An economy is in a state of deflationary gap. What corrective measures can the government take through its fiscal policy?
Government Budget and the Economy
2 questionsDistinguish between Revenue Deficit and Fiscal Deficit. Calculate Fiscal Deficit given: Total Expenditure ₹8,000 crore, Revenue Receipts ₹4,500 crore, Capital Receipts excluding borrowings ₹1,500 crore.
What are the objectives of a government budget?
Open Economy Macroeconomics — Balance of Payments
2 questionsWhat is the Balance of Payments? Distinguish between the current account and capital account.
Explain how exchange rate is determined in a free-float system using demand and supply of foreign exchange.
Frequently Asked Questions
Which are the most important questions in Class 12 Economics for CBSE board exam?
All 22 questions listed here are selected based on CBSE board exam frequency and marks weightage. Prioritise long-answer (5-mark) questions first — 18 questions here — as they carry the most marks. Short-answer questions (4 here) are next. Together they cover the questions most likely to appear.
Is it enough to study only important questions for CBSE Class 12 Economics?
Practising these 22 important questions gets you to 70–75% marks. For 85%+, also read chapter summaries and attempt at least one full sample paper under timed conditions. Use these important questions as your minimum baseline, not your ceiling.
How should I write answers in CBSE Class 12 Economics board exam?
For 1-mark questions: one direct sentence — no elaboration needed. For 3-mark questions: 3 clearly numbered points, each 1–2 lines. For 5-mark questions: brief intro + 4–5 numbered points with subject-specific keywords + 1-line conclusion. CBSE examiners look for keywords in marking schemes — structure your answers around them.
How many questions come from each chapter in Class 12 Economics CBSE board exam?
CBSE doesn't publish a fixed chapter-wise distribution, but chapters with more important questions listed here have historically appeared more frequently in board papers. Focus extra time on chapters with 5 or more questions — those chapters consistently carry high marks.