CBSE CLASS 10 ECONOMICS: 2026 BOARD EXAM MODEL MCQs

The 2026 Board Exam pattern focuses heavily on "Competency-based Questions." This means you won't just be asked for definitions; you'll be asked to apply economic logic to real-life scenarios. Use this set to test your readiness for the 20 marks allocated to objectives.

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THE PRACTICE SET

Q1. Countries with a per capita income of US$ 12,056 per annum and above (as per 2017 data) are classified as:

• (a) Low-income countries

• (b) Developing countries

• (c) Rich countries

• (d) Least developed countries

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

• (a) Health status and Education levels

• (b) Only Per Capita Income

• (c) Military power

• (d) Geographical area

Q3. A person is working in a sector where they do not have fixed working hours, no paid leaves, and can be asked to leave at any time. This person is employed in the:

• (a) Organized Sector

• (b) Unorganized Sector

• (c) Public Sector

• (d) Tertiary Sector

Q4. Identify the sector that provides services like transport, banking, and communication to the other two sectors.

• (a) Primary Sector

• (b) Secondary Sector

• (c) Tertiary Sector

• (d) Manufacturing Sector

Q5. In a situation where more people are working on a piece of land than are actually required, the extra workers are said to be suffering from:

• (a) Seasonal Unemployment

• (b) Structural Unemployment

• (c) Disguised Unemployment

• (d) Cyclical Unemployment

Q6. Which of the following serves as a 'Modern Form' of money and is accepted as a medium of exchange because the government authorizes it?

• (a) Gold coins

• (b) Livestock

• (c) Currency notes and coins

• (d) Precious stones

Q7. The 'Reserve Bank of India' (RBI) supervises the functioning of which source of credit?

• (a) Informal sources (Moneylenders)

• (b) Formal sources (Banks and Cooperatives)

• (c) Relatives and Friends

• (d) Self-Help Groups

Q8. What is the primary reason why 'Collateral' is required by formal lenders while giving a loan?

• (a) To increase the profit of the bank.

• (b) To act as a guarantee against the loan until it is repaid.

• (c) To help the poor borrowers.

• (d) To track the income of the borrower.

Q9. Removing barriers or restrictions set by the government on foreign trade is known as:

• (a) Privatization

• (b) Nationalization

• (c) Liberalization

• (d) Socialization

Q10. Assertion (A): The Body Mass Index (BMI) is an important tool to find out if an adult is undernourished.

Reason (R): BMI is calculated by dividing the weight of a person by the square of their height.

• (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.

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✅ THE ANSWER KEY (READY FOR SELF-CHECK)

Q.No	Correct Option	Economic Logic / Key Context
Q1	(c)	This is the World Bank's threshold for 'High Income' nations.
Q2	(a)	HDI is a holistic measure of life expectancy, literacy, and income.
Q3	(b)	Unorganized sectors operate outside government control with no job security.
Q4	(c)	Also known as the 'Service Sector'.
Q5	(c)	Their marginal productivity is zero (even if they leave, output stays the same).
Q6	(c)	Unlike commodities, modern currency has no value of its own—its value is legal.
Q7	(b)	RBI ensures that banks maintain cash balances and lend to all sectors.
Q8	(b)	It provides security to the lender in case of default.
Q9	(c)	Liberalization allows for the free flow of goods and services across borders.
Q10	(a)	The formula used for BMI is $\text{BMI} = \frac{\text{Weight (kg)}}{(\text{Height (m)})^2}$.