CBSE CLASS 10 ECONOMICS: 2026 BOARD EXAM MODEL MCQs

 

CBSE CLASS 10 ECONOMICS: 2026 BOARD EXAM MODEL MCQs

Economics in 2026 isn't about rote learning; it's about Economic Literacy. The board now focuses on how you apply concepts like "Disguised Unemployment" or "Terms of Credit" to real-world scenarios.

Here are the top 10 Multiple Choice Questions (MCQs) to test your preparation for the upcoming board exams.

PRACTICE QUESTIONS

Q1. Suppose the per capita income of a country is $\$10,000$. This average income is calculated by:

  • (a) Total income divided by the number of employed citizens.

  • (b) Total income of the country divided by its total population.

  • (c) Total wealth of the country divided by the number of families.

  • (d) Total income of the top 10% of the population.

Q2. Which of the following is a major indicator used by the UNDP to measure the Human Development Index (HDI)?

  • (a) Military strength of the country.

  • (b) Per Capita Income, Health, and Education status.

  • (c) Number of industries in the country.

  • (d) The total gold reserves held by the central bank.

Q3. If a person is working in a factory where they receive a fixed salary, have a letter of appointment, and get paid leave, they are working in the:

  • (a) Primary Sector

  • (b) Unorganized Sector

  • (c) Organized Sector

  • (d) Informal Sector

Q4. A farmer has five family members working on a small plot of land, but the work can easily be done by only three people. The extra two members are suffering from:

  • (a) Seasonal Unemployment

  • (b) Structural Unemployment

  • (c) Disguised Unemployment

  • (d) Friction Unemployment

Q5. Which of the following serves as a modern form of money and is accepted as a medium of exchange because it is authorized by the government?

  • (a) Gold coins

  • (b) Cattle

  • (c) Paper notes and coins

  • (d) Metallic grains

Q6. The 'Reserve Bank of India' (RBI) performs all the following functions EXCEPT:

  • (a) Issuing currency notes on behalf of the Central Government.

  • (b) Supervising the functioning of formal sources of loans.

  • (c) Providing high-interest loans directly to poor rural households.

  • (d) Monitoring that banks maintain a minimum cash balance.

Q7. Self-Help Groups (SHGs) are becoming popular in rural India primarily because:

  • (a) They provide loans with very high interest rates.

  • (b) They help borrowers overcome the problem of lack of collateral.

  • (c) They are managed by Multi-National Corporations.

  • (d) They only provide loans for purchasing luxury goods.

Q8. The process of rapid integration or interconnection between countries through the movement of goods, services, and investments is known as:

  • (a) Liberalization

  • (b) Privatization

  • (c) Globalization

  • (d) Nationalization

Q9. Which international organization aims to liberalize international trade and ensure that rules are followed by member nations?

  • (a) UNESCO

  • (b) World Health Organization (WHO)

  • (c) World Trade Organization (WTO)

  • (d) International Monetary Fund (IMF)

Q10. Assertion (A): The service sector in India has grown significantly in terms of GDP contribution.

Reason (R): The development of agriculture and industry leads to the development of services like transport, trade, and storage.

  • (a) Both A and R are true and R is the correct explanation of A.

  • (b) Both A and R are true but R is not the correct explanation of A.

  • (c) A is true but R is false.

  • (d) A is false but R is true.

✅ THE ANSWER KEY (READY FOR SELF-CHECK)

Q.NoCorrect OptionKey Concept / Logic
Q1(b)Average income = Total Income / Total Population.
Q2(b)HDI is a holistic measure, unlike the World Bank's focus only on income.
Q3(c)Organized sectors follow government regulations and offer job security.
Q4(c)It looks like they are working, but their productivity is zero.
Q5(c)Currency is a medium of exchange backed by law.
Q6(c)RBI is a regulator; it does not give direct loans to individuals.
Q7(b)SHGs allow the poor to get small loans based on group guarantee.
Q8(c)Technology and trade have shrunk the world into a global village.
Q9(c)WTO pushes for the removal of trade barriers.
Q10(a)The Tertiary sector is a "supporting" sector for the other two.

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