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“Each factor of… (Class 12 Economics SQP 2026-27, Q11B)

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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 3 marks · Short answer

CBSE Class 12 Economics sample paper 2026-27: question 11(B)

From the official CBSE sample question paper for 2026-27, section A, question 11(B), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q11(B) · 3 marks · Short answerCompetency-basedNational Income Accounting

“Each factor of production contributes a distinct service in the production process and receives a specific reward in return.”
In the light of the given statement, answer the following questions:

  1. (I)

    List any two factors of production and their respective remuneration earned.

    2 marks
  2. (II)

    Define any one of the remuneration earned listed above.

    1 mark

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

There are four factors of production.

Hint 2

Match each factor with its reward.

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. (I) Land earns rent.

    1 mark

  2. (I) Capital earns interest. (Also: labour earns wages/compensation of employees; entrepreneurship earns profit.)

    1 mark

  3. (II) Rent is the income earned by the owner of land (natural resources) for allowing its use in production.

    1 mark

Answer: (I) Land – rent; capital – interest (also labour – wages, entrepreneur – profit). (II) Rent is the income of the owner of land for its use.

Where the marks are

  • Two factors with rewards (½ + ½ each)
  • One reward defined (1)

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 2026-27: 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.