CBSE Class 10 Economics — Model Paper 10 Multiple Choice Questions | All Chapters Covered

Board Exam 2026 · Preparation Series

CBSE Class 10 Economics — Model Paper
10 Multiple Choice Questions | All Chapters Covered

๐Ÿ’ฐ Class 10 CBSE๐Ÿ“Š Social Science – Economics๐Ÿ—“️ Board Exam 2026๐Ÿ“– Understanding Economic Development

Welcome to this CBSE Class 10 Economics Model Paper for Board Exam 2026. This practice set contains 10 carefully selected Multiple Choice Questions (1 mark each = 10 marks) covering every important chapter of the NCERT textbook Understanding Economic Development. Each question is crafted to test your conceptual clarity, data interpretation, and application of economic principles — the exact skills tested in the Board Exam. Attempt all questions first, then verify your answers using the detailed answer key and explanations at the end.

Subject: Social Science (Economics)Class: X (10th)
Total Questions: 10 MCQsTotal Marks: 10
Marks per Question: 1 markNegative Marking: None
Book: Understanding Economic Development (NCERT)  |  Suggested Time: 15–20 minutes
Chapters Covered:DevelopmentSectors of EconomyMoney & CreditGlobalisationConsumer Rights

SECTION A — Multiple Choice Questions

Each question carries 1 mark  |  No negative marking  |  Choose the most appropriate option.

1

Which of the following statements BEST explains why per capita income alone is not an adequate measure of development?

(A)  Per capita income is difficult to calculate accurately

(B)  It does not account for the distribution of income or non-income factors like health, education, and environment

(C)  It is only used by developing countries

(D)  It measures only industrial production and ignores services

Chapter: Development

2

The World Development Report published by the World Bank classifies countries as low income, middle income, and high income on the basis of:

(A)  Human Development Index (HDI)

(B)  Per capita income (in US Dollars)

(C)  Literacy rate

(D)  Infant Mortality Rate (IMR)

Chapter: Development (World Bank Classification)

3

Which of the following activities belongs to the primary sector of the economy?

(A)  Manufacturing of steel

(B)  Software development

(C)  Dairy farming

(D)  Banking and insurance

Chapter: Sectors of the Indian Economy

4

The organised sector of the economy is characterised by which of the following features?

(A)  Workers have no fixed working hours or written contracts

(B)  Workers are registered with the government, receive job security, paid leave, and provident fund benefits

(C)  It employs more than 90% of India's workforce

(D)  Workers can be dismissed without any legal notice period

Chapter: Sectors of the Indian Economy (Organised vs Unorganised)

5

Gopal is a farmer who needs to borrow ₹1 lakh to buy seeds and fertilisers. The local moneylender charges him 5% interest per month. This is an example of which type of credit source?

(A)  Formal credit from a commercial bank

(B)  Credit from a cooperative society

(C)  Informal credit source

(D)  Microfinance from a Self Help Group

Chapter: Money and Credit (Informal Credit)

6

Which of the following is the PRIMARY function of the Reserve Bank of India (RBI) in relation to commercial banks?

(A)  To provide loans directly to farmers and small businesses

(B)  To supervise, regulate, and control the functioning of commercial banks and issue currency notes

(C)  To collect income tax from banks and submit it to the government

(D)  To set up Self Help Groups in rural areas

Chapter: Money and Credit (Role of RBI)

7

Which of the following is the most significant factor that has enabled globalisation in the modern world?

(A)  Increase in agricultural production

(B)  Growth of democracy in developing countries

(C)  Rapid improvement in technology — especially in transport, communication, and information technology

(D)  Increase in literacy rates in Africa

Chapter: Globalisation and the Indian Economy

8

Removing barriers on trade and investment between countries is known as:

(A)  Privatisation

(B)  Nationalisation

(C)  Liberalisation

(D)  Subsidisation

Chapter: Globalisation and the Indian Economy (Liberalisation)

9

A consumer buys a packet of biscuits that clearly mentions "100g" on the label, but on weighing it at home, she finds it is only 80g. Which consumer right has been violated?

(A)  Right to Safety

(B)  Right to Choose

(C)  Right to be Informed

(D)  Right to be Heard

Chapter: Consumer Rights

10

The Agmark quality certification is used on which category of products in India?

(A)  Electrical appliances and industrial goods

(B)  Agricultural and food products

(C)  Gold and silver jewellery

(D)  Pharmaceutical and medical products

Chapter: Consumer Rights (Quality Marks)


✅ Answer Key

8(C) LiberalisationGlobalisation1
9(C) Right to be InformedConsumer Rights1
10(B) Agricultural and food productsConsumer Rights1
Total Marks:10
QCorrect AnswerChapterMarks
1(B) Doesn't account for distribution or non-income factorsDevelopment1
2(B) Per capita income (in US Dollars)Development1
3(C) Dairy farmingSectors of Economy1
4(B) Registered workers with job security, paid leave & PFSectors of Economy1
5(C) Informal credit sourceMoney and Credit1
6(B) Supervise, regulate banks and issue currency notesMoney and Credit1
7(C) Rapid improvement in technologyGlobalisation1

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