UP Class 12 Economics Important Questions 2026

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UP Class 12 Economics Important Questions 2026 are helpful to revise for the final exam. According to the latest sample question paper, the question paper will be a mix of objective-type, short-answer, long-answer, and very-long-answer questions. If you regularly practice the important questions provided here, you will learn about the commonly asked topics. These important questions are derived from the previous year's question papers and sample question papers. But you are suggested to first complete the UP Board Class 12 Economics Syllabus 2025-26 before going for the important questions so that you can understand the questions easily and can apply the right concept. Make sure that you are solving the important questions completely on your own and then checking the answers to learn about your preparation level. To check more information about the UP Class 12 Economics Important Questions 2026, scroll below.

UP Class 12 Economics Important Questions 2026 for 1 Mark

The Economics theory paper will be held for 100 marks. You will be provided 3 hours and 15 minutes to complete the paper. The first 15 minutes will be the reading time. The very first section of the question paper will consist of objective-type questions for 1 Mark each. A total of 10 MCQs will be included in the very first section. There will be no internal choices given in this section. Check out some important objective-type questions below:

Question 1: Which one of the following is true? The total variable cost is equal to:

(A) The average variable cost x quantity

(B) The average variable cost/quantity

(C) The marginal variable cost x quantity

(D) The marginal variable cost/quantity

Question 2: Which of the following is not a function of the Reserve Bank of India?

(A) Credit creation

(B) Credit control

(C) Government's Bank

(D) Determination of monetary policy

Question 3: Under perfect competition, the demand curve of a firm is

a) Elastic

c) Perfectly elastic

b) Inclastic

d) Perfectly inelastic

Question 4: Who is the Governor of the Reserve Bank of India, at present?

a) Shakti Kant Das

c) Sanjay Malhotra

b) Nirmala Sitharaman

d) Piyush Goel

Question 5: If the demand curve is parallel to the x-axis, then the elasticity of demand is

a) infinite b) one c) less than one d) more than one 1

Question 6: If the value of the marginal propensity to consume is 0.8, what will be the value of

marginal propensity to save?

a) 1.8 b) 1.0 c) 0.2 d) Zero

Question 7: Which one of the following is false? At the time of Independence (1947), one Indian rupee was equal to:

(A) 4 Four Annas

(B) 2 Eight Annas

(C) 64 Рaise

(D) 100 Paise

Question 8: Borrowing in the government budget is equal to

(A) Revenue deficit

(B) Fiscal deficit

(C) Primary deficit

(D) Deficit in taxes

Question 9: When did the Global Economic Depression occur?

a) 1929-1930 b) 1945-1946 c) 1975-1976 d) 1990-91

Question 10: Which one of the following expresses 'National Income Identity' for a closed economy?

(A) Y=C+I+G

(B) Y=C+I+G+X

(C) Y=C+I+G+(X-M)

(D) Y=C+I+G+NX

UP Class 12 Economics Important Questions 2026 for 4 Marks

The second section of the question paper consists of short-answer type questions for 4 marks each to be answered in 50 words. You can check out the important questions for 4 marks below:

Question 1: Differentiate between Normal goods and Inferior goods.

Question 2: What is 'Production Function'?

Question 3: What is Opportunity Cost?

Question 4: What do you understand by "Frictional Unemployment"?

Question 5: What do you mean by "Market"?

Question 6: Describe three factors that affect the supply curve of a firm.

UP Class 12 Economics Important Questions 2026 for 6 Marks

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In the question paper, there will be around 6 questions for 6 marks to be answered in the third section. You can check out some important long-answer type questions below:

Question 1: Explain the law of diminishing marginal rate of substitution in indifference curves with the help of a diagram.

Question 2: What do you understand by Consumer's equilibrium? Show the Consumer's equilibrium with the help of Indifference Curve Analysis.

Question 3: Explain the Gross National Product at Market Price.

Question 4: Explain the important functions of commercial banks.

Question 5: Differentiate between marginal propensity to consume and marginal propensity to save diagrammatically.

Question 6: Write a short note on 'Goods and Services Tax' in India.

Also Read: UP Board Class 12 Economics Exam Pattern 2025-26

UP Class 12 Economics Important Questions 2026 for 10 Marks

In the very last section of the question paper, you will find very long answer-type questions for 10 marks each. You can check important questions below:

Question 1: Describe the characteristics of a 'Perfectly Competitive Market'. Explain the determination of price in such a market.

Question 2: Write the meaning of Involuntary Unemployment. Mention the factors responsible for Involuntary Unemployment.

Question 3: Write a short note on the Foreign Exchange Rate. What are meant by Fixed and Flexible Exchange Rates?

Question 4. When the price of a commodity decreases from Rs. 5 per unit to Rs. 4 per unit, its demand increases from 100 units to 110 units. Calculate the elasticity of demand.

Question 5: The Following data is related to an economy. Based on these data, calculate

National Income of that economy:

Details Amount (In Crore Rupees)

Wages 1000

Rent 400

010164

Interest 50

Dividend 300

Mixed Income 250

UP Class 12 Economics Chapter-Wise Weightage 2026

The Economics syllabus is divided into two sections. There are a total of 9 chapters included in the syllabus. You can check out the chapter-wise weightage from the table given below:

Make sure to practice the important questions after you complete the syllabus to understand the types of questions that can appear during the exam and also the commonly asked topics.

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