CBSE Class 10 Economics: 2026 Board Exam Model Paper (10 Must-Solve MCQs)

Are you ready to ace the Economics section of your Social Science paper? Economics usually carries 20 marks, and getting the MCQs right is the fastest way to secure a top score. We’ve curated 10 high-yield Multiple Choice Questions based on the latest 2026 pattern, covering Development, Sectors of the Economy, Money and Credit, and Globalization.

---

Section A: Multiple Choice Questions (1 Mark Each)

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

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

• (b) Total income of the working population only.

• (c) Total income divided by the number of households.

• (d) Net profit from international trade.

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

• (a) Only per capita income.

• (b) Health status, education levels, and per capita income.

• (c) Number of industries in the country.

• (d) The country's military strength.

Q3. If a person is working in a sector 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. Identify the activity that belongs to the Tertiary Sector:

• (a) Fishing in a local pond.

• (b) Making sugar from sugarcane.

• (c) Providing internet and banking services.

• (d) Mining iron ore.

Q5. A farmer has five family members working on a small plot of land, but even if two people are removed, the production remains the same. This is an example of:

• (a) Seasonal Unemployment

• (b) Structural Unemployment

• (c) Disguised Unemployment

• (d) Cyclical Unemployment

Q6. Which of the following is a 'Modern Form' of money?

• (a) Gold and Silver coins

• (b) Grains and Livestock

• (c) Currency notes and Demand Deposits

• (d) Copper plates

Q7. The 'Reserve Bank of India' (RBI) performs which of the following functions?

• (a) It provides loans directly to poor households.

• (b) It supervises the functioning of formal sources of loans.

• (c) It sets the price for agricultural products.

• (d) It runs the Public Distribution System (PDS).

Q8. What is the main reason why banks demand 'Collateral' while lending?

• (a) To increase their total profit.

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

• (c) To help the borrower manage their assets.

• (d) To charge a higher interest rate.

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

• (a) Privatization

• (b) Liberalization

• (c) Nationalization

• (d) Socialization

Q10. "MNCs (Multi-National Corporations) choose to set up production in countries where..."

• (a) Labor costs are very high.

• (b) They can find cheap labor and other resources to minimize costs.

• (c) The government imposes very high taxes on foreign trade.

• (d) There is no infrastructure for transport.

---

✅ Answer Key & Explanations

Q.No	Answer	Quick Logic
1	(a)	Per Capita Income = Total Income / Total Population.
2	(b)	HDI is a holistic measure, unlike the World Bank which only uses income.
3	(c)	Organized sectors follow government rules and provide job security.
4	(c)	Tertiary sector is the "Service Sector."
5	(c)	Productivity of the "extra" people is zero.
6	(c)	Modern money is authorized by the government and doesn't have intrinsic value like gold.
7	(b)	RBI is the regulator of the formal banking system.
8	(b)	It’s an asset the lender can sell if the borrower fails to pay.
9	(b)	Liberalization allows for the free flow of trade across borders.
10	(b)	Profit maximization is the primary goal of any MNC.