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Ms. Sarika is a… (Class 12 Economics SQP 2025-26, Q13A)

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EconomicsCBSE Class 12 · Sample paper, session 2025-26 · 4 marks · Short answer

CBSE Class 12 Economics sample paper 2025-26: question 13(A)

From the official CBSE sample question paper for 2025-26, section A, question 13(A), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q13(A) · 4 marks · Short answerCompetency-basedNational Income Accounting

Ms. Sarika is a retired government employee. Every month, she earns rental income from a property she owns. She has also invested in fixed deposit, which provide her with interest income. Occasionally, she receives cash transfers from her family members abroad.
Classify, Ms. Sarika’s income as factor income or transfer income, giving valid reasons in support of your answer.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Did she provide a service in exchange for the money?

Hint 2

Gifts and remittances are one-way payments.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Rent from her property and interest on her fixed deposit are factor incomes.

    1 mark

  2. They are earned for providing factor services: land/property (rent) and capital (interest) used in production.

    1 mark

  3. Cash transfers from family members abroad are transfer income.

    1 mark

  4. They are received without providing any productive service in return (her pension, if any, would also be a transfer).

    1 mark

Answer: Rent and interest are factor incomes (earned for services of land and capital); cash transfers from family abroad are transfer income (no service rendered).

Where the marks are

  • Factor income identified with reason (2)
  • Transfer income identified with reason (2)

Revise the chapter

Practise this chapterBoard-style questions from National Income Accounting, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.