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Ms. Reeta D’Costa, retired… (Class 12 Economics 2026, Q13B)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 4 marks · Short answer

CBSE Class 12 Economics 2026: question 13(B)

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, section A, question 13(B), for 4 marks. Try it first; the hints and our step-by-step solution are below.

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

Ms. Reeta D’Costa, retired from the post of Income Tax Commissioner in the year 2023.
Apart from her pension, she also receives the following from various sources :

  • Rental income from a flat she owns.
  • Interest income from her fixed deposits.
  • Money sent by her children settled abroad.

Identify and classify, her monthly incomes into ‘factor income’ and ‘transfer income’, with valid reasons.

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

Ask for each item: is it a reward for a productive service?

Hint 2

A retirement pension is linked to past employment.

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. Factor income: rent from her flat (income for the service of land/property) and interest on her fixed deposits (income for the service of capital).

    1 mark

  2. Her pension is also a factor income: it is deferred compensation of employees, part of the payment for the work she did while in service.

    ½ mark

  3. Transfer income: money sent by her children settled abroad (a gift; no service is given in return).

    ½ mark

  4. Factor income is earned by factors of production in return for productive services rendered.

    1 mark

  5. Transfer income is received without rendering any productive service in return; it is a one-sided payment.

    1 mark

Answer: Factor incomes: rent, interest and the retirement pension (deferred wages). Transfer income: money sent by her children abroad.

Where the marks are

  • Rent and interest as factor income (½ + ½)
  • Pension as factor income (½)
  • Money from children as transfer income (½)
  • Meaning of factor income (1)
  • Meaning of transfer income (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 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.