Free Practice Questions for PSEB SS Economics

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card

100+ Questions

100% Free

Loading practice questions...

Same family resources

Explore More Punjab PSEB Senior Secondary (Class 12) Subjects

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

Exam Review

Key Facts: PSEB SS Economics Exam

3 hours

PSEB Class 12 Economics theory exam duration

PSEB Class 12 Economics syllabus

80 + 20

Theory marks + Internal Assessment including project work

PSEB Class 12 Economics syllabus / Scheme of Studies

33%

Minimum theory (and aggregate) pass floor under PSEB Scheme of Studies

PSEB Scheme of Studies Senior Secondary

Code 026

Economics subject code on PSEB Senior Secondary scheme

PSEB Scheme of Studies

Micro + Macro

Part A Introductory Microeconomics and Part B Introductory Macroeconomics

PSEB Class 12 Economics syllabus PDF

PSEB Senior Secondary Economics (code 026) is a Class 12 public-exam theory elective of 3 hours (Theory 80 + INA 20) with a 33% scheme pass floor, covering introductory micro and macro — not a pure MCQ board paper. This free 2026 bank is an English MCQ study adaptation for PSEB Class 12 Economics concepts and calculations.

Sample PSEB SS Economics Practice Questions

Try these sample questions to review concepts for the PSEB SS Economics exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1The central problems of an economy arise mainly because:

A.Resources are scarce relative to unlimited wants

B.All goods are free gifts of nature

C.Governments always fix every market price

D.Money supply always exceeds the supply of goods

Explanation: Scarcity of resources against unlimited wants forces every economy to decide what, how, and for whom to produce. These allocation choices are the central economic problems.

2Which of the following is a microeconomic study?

A.Pricing of wheat in a local mandi market

B.Growth rate of national income over a decade

C.Aggregate unemployment rate for the country

D.Overall inflation measured by the consumer price index

Explanation: Microeconomics studies individual units such as a consumer, firm, or product market. Pricing of wheat in one market is a micro topic; the other options are macroeconomic aggregates.

3Opportunity cost of a decision is best defined as:

A.The value of the next-best alternative foregone

B.The total money cost paid for all inputs used

C.Only the explicit accounting cost of production

D.The sum of all past sunk costs already incurred

Explanation: Opportunity cost is the benefit of the best alternative given up when a choice is made. It is a real-cost concept used throughout Class 12 microeconomics.

4A production possibility frontier (PPF) that is concave (bowed out) from the origin reflects:

A.Increasing opportunity cost as resources are reallocated between goods

B.Constant opportunity cost along the entire frontier

C.Decreasing opportunity cost of the good on the horizontal axis only

D.That the economy has unlimited resources

Explanation: Concavity of the PPF shows that resources are not equally suited to all uses, so opportunity cost rises as more of one good is produced. A straight-line PPF would show constant opportunity cost.

5A point inside the production possibility frontier indicates that the economy is:

A.Using resources inefficiently or leaving some resources idle

B.Producing more than is technologically possible

C.Operating with zero opportunity cost for every good

D.Beyond full employment of all resources

Explanation: Feasible points inside the PPF mean the economy can still increase output of one or both goods by using idle resources or improving allocation. Points on the frontier are efficient; points outside are unattainable with current resources and technology.

6An economy produces only food and cloth. Moving from (food 100, cloth 40) to (food 80, cloth 50) along the PPF, the opportunity cost of 10 extra cloth units is:

A.20 units of food

B.10 units of food

C.50 units of food

D.80 units of food

Explanation: Food falls by 20 (100−80) while cloth rises by 10 (50−40). The opportunity cost of the additional 10 cloth is therefore 20 units of food.

7Which statement is a positive economic statement?

A.India’s GDP grew by about 7% last year

B.The government ought to raise the minimum wage

C.Everyone should have free higher education

D.Tax rates on luxury goods should be higher

Explanation: Positive statements describe what is and can be tested with data. Normative statements involve value judgments about what ought to be (options about should/ought).

8In a market economy, the basic economic problems are largely solved by:

A.Price signals and voluntary exchange in markets

B.A central planning authority allocating every input

C.Random distribution of all goods by lottery

D.Complete prohibition of private property

Explanation: In a market economy, prices convey scarcity and preferences; producers and consumers respond, allocating resources through exchange. A centrally planned economy relies primarily on directives rather than price signals.

9According to the law of diminishing marginal utility, as a consumer consumes more units of a good in a given period:

A.Marginal utility from successive units eventually declines

B.Total utility always falls with every extra unit

C.Marginal utility always remains constant

D.Price of the good automatically rises

Explanation: Diminishing MU means each additional unit yields less extra satisfaction than the previous one (after a point). Total utility can still rise while MU falls, as long as MU is positive.

10Under the cardinal utility approach, a consumer buying two goods X and Y maximises satisfaction when:

A.MUx/Px = MUy/Py (and the budget is exhausted)

B.MUx = MUy regardless of prices

C.Px = Py for both goods

D.Total utility of X equals total utility of Y

Explanation: Consumer equilibrium requires equalising marginal utility per rupee across goods (MUx/Px = MUy/Py) while spending the full budget. That equalises bang-for-the-buck on each good.

About the PSEB SS Economics Exam

Punjab Senior Secondary Economics under PSEB covers Class 12 Economics (subject code 026) as set out in the official PSEB syllabus: Part A Introductory Microeconomics and Part B Introductory Macroeconomics. Core topics include scarcity and PPF, consumer behaviour and demand elasticity, production and short-run costs, the firm under perfect competition, market equilibrium and price controls, national income aggregates, money and banking, income determination and the multiplier, government budget deficits, and open-economy basics. Official assessment is a 3-hour theory paper (Theory 80 + INA/project 20). This free local bank provides English four-option MCQs for revision and calculation practice; pair it with official syllabus PDFs and written numerical practice via pseb.ac.in.

Exam sponsor: Punjab School Education Board (PSEB). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

PSEB Senior Secondary Economics (Class 12; subject code 026) is a public examination theory elective for Humanities/Commerce. Official logistics: Theory 80 marks + Internal Assessment including project work 20 marks = 100 marks; theory time allowed 3 hours. Syllabus Part A Introductory Microeconomics (introduction; consumer behaviour; production and costs; firm under perfect competition; market equilibrium) and Part B Introductory Macroeconomics (introduction; national income accounting; money and banking; income and employment; government budget; open economy). Official papers are mixed-format theory, not pure MCQ. English/Punjabi/Hindi media may be available officially; this practice bank is an English-language MCQ study adaptation. Confirm the current syllabus PDF and circulars on pseb.ac.in.

Time Limit

3 hours

Passing Score

33%

Exam / Certification Fees

As notified by PSEB and paid through affiliated schools for regular and compartment/improvement sittings (no single fixed public subject fee for all categories).

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~8% of this local bank

Introduction to Microeconomics

Scarcity, central problems, opportunity cost, PPF, and micro vs macro.

~14% of this local bank

Consumer Behaviour and Demand

Utility, indifference curves, demand, and elasticity calculations.

~14% of this local bank

Production and Costs

Production function, costs, and short-run cost relationships.

~10% of this local bank

Perfect Competition and Firm

Revenue, profit maximisation, shutdown, and supply.

~6% of this local bank

Market Equilibrium

Equilibrium, ceilings, floors, and simple algebra.

~15% of this local bank

National Income

GDP/GNP/NDP aggregates and measurement methods with numericals.

~10% of this local bank

Money and Banking

Money functions, credit creation, and RBI policy tools.

~12% of this local bank

Income Determination

AD–AS, MPC/MPS, and investment multiplier numericals.

~6% of this local bank

Government Budget

Budget components and fiscal, revenue, and primary deficits.

~5% of this local bank

Open Economy

Balance of payments and foreign exchange rate basics.

Preparing for the PSEB SS Economics Exam

What You Need to Know

Passing score: 33%
Assessment: PSEB Senior Secondary Economics (Class 12; subject code 026) is a public examination theory elective for Humanities/Commerce. Official logistics: Theory 80 marks + Internal Assessment including project work 20 marks = 100 marks; theory time allowed 3 hours. Syllabus Part A Introductory Microeconomics (introduction; consumer behaviour; production and costs; firm under perfect competition; market equilibrium) and Part B Introductory Macroeconomics (introduction; national income accounting; money and banking; income and employment; government budget; open economy). Official papers are mixed-format theory, not pure MCQ. English/Punjabi/Hindi media may be available officially; this practice bank is an English-language MCQ study adaptation. Confirm the current syllabus PDF and circulars on pseb.ac.in.
Time limit: 3 hours
Exam / certification fees: As notified by PSEB and paid through affiliated schools for regular and compartment/improvement sittings (no single fixed public subject fee for all categories). Official sources

Using Our Practice Resources

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

PSEB SS Economics: Suggested Study Strategy

1Draw demand, cost, and AD–AS diagrams after each MCQ set and label axes carefully before rewriting a short answer.

2For elasticity and national income, write the formula first, then substitute figures; watch initial vs mid-point methods when the stem specifies one.

3Track factor cost vs market price and net vs gross aggregates — common objective traps in national income.

4Memorise multiplier = 1/(1−MPC) = 1/MPS and deposit expansion ≈ initial deposit × (1/CRR); practise one full numerical after every set.

5Complete the Economics project/INA (20 marks) early; use current PSEB Class 12 Economics syllabus materials from pseb.ac.in to allocate revision between Part A Micro and Part B Macro.

Frequently Asked Questions

How is PSEB Senior Secondary Economics officially examined?

Economics (subject code 026) is examined under the Punjab Senior Secondary Certificate Examination as a Class 12 theory elective. The official Economics syllabus states Time Allowed: 3 Hours, Theory: 80 marks, Internal Assessment including Project Work: 20 marks. Confirm the year’s syllabus PDF, date sheet, and circulars on pseb.ac.in.

Is this practice bank the same format as the official Senior Secondary Economics paper?

No. Official PSEB Class 12 Economics theory papers mix objective and subjective numerical/theory sections. This bank is an English-language multiple-choice study adaptation for concepts and numericals only — not an official translation, blueprint replica, or full written-paper simulation.

What syllabus does this bank follow?

It is aligned to the official PSEB Class 12 Economics syllabus (code 026): Part A Introductory Microeconomics (introduction; theory of consumer behaviour; production and costs; firm under perfect competition; market equilibrium) and Part B Introductory Macroeconomics (introduction; national income accounting; money and banking; determination of income and employment; government budget; open economy). Note: this is micro + macro as in the PSEB PDF, not a separate Indian Economic Development paper.

What is the pass mark for PSEB Senior Secondary Economics?

Under the PSEB Scheme of Studies, candidates must secure minimum 33% in theory (and practical separately if applicable). There is no separate minimum for internal assessment alone, but 33% is required in theory, practical (if any), and INA in aggregate. Always verify the current PSEB notification for your sitting.

Where should I check official syllabus and date sheets?

Use the Punjab School Education Board website at pseb.ac.in for Class 12 Economics syllabus PDFs (code 026), Scheme of Studies, date sheets, and exam circulars.

Free Practice Questions for PSEB SS Economics

Explore More Punjab PSEB Senior Secondary (Class 12) Subjects

Punjab PSEB Senior Secondary Accountancy

Punjab PSEB Senior Secondary Agriculture

Punjab PSEB Senior Secondary Biology

Punjab PSEB Senior Secondary Business Studies

Punjab PSEB Senior Secondary Chemistry

Punjab PSEB Senior Secondary Commercial Art