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Two friends, Ravi and… (Class 12 Economics 2026, Q11B)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 3 marks · Short answer

CBSE Class 12 Economics 2026: question 11(B)

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, 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

Two friends, Ravi and Harry were discussing whether the money received from sale of an old car should be included in India’s National income.
Ravi was of the view that it should be included in India’s National income while Harry did not agree with him.
They also had difference of opinion on the treatment of brokerage paid to the car dealer.
As their Economics teacher, state the treatments with valid arguments.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.

Hints

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

Hint 1

In which year was the old car's value added to national income?

Hint 2

Is the dealer producing a service this year?

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. Harry is right. Sale of an old (second-hand) car is not included in national income. The car was counted in the year it was produced; its resale only transfers ownership of an existing good and adds nothing to current production.

    1½ marks

  2. The brokerage paid to the car dealer is included: it is a payment for a productive service (arranging the sale) rendered in the current year.

    1½ marks

Answer: Sale of the old car is excluded (already counted when produced); the dealer's brokerage is included (current productive service).

Where the marks are

  • Old car excluded, with reason (1½)
  • Brokerage included, with reason (1½)

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 paper2026 board paper, set 58/1/1: 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.