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Answer the following. (Class 12 Economics 2026, Q14b)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/5/1 · 4 marks · Long answer

CBSE Class 12 Economics 2026: question 14(b)

Set in the CBSE Class 12 board exam of 2026, paper 58/5/1, section A, question 14(b), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q14(b) · 4 marks · Long answerCompetency-basedNational Income Accounting

Answer the following.

  1. (i)

    Define Gross Investments.

    1 mark
  2. (ii)

    Identify any two components of Gross Investments indicated in the given image.

    1 mark
  3. (iii)

    Briefly explain any one component of Gross Investments.

    2 marks

Figure in the paper: Image titled 'GROSS INVESTMENTS' with three panels: Panel A shows a crane building a bridge/flyover (infrastructure construction); Panel B shows residential houses; Panel C shows a warehouse/godown with stacked goods (inventory). See it in the official paper.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/5/1.

Hints

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

Hint 1

Gross = net + depreciation.

Hint 2

Who builds a flyover?

Hint 3

Houses and stocks of goods are also investment.

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) Gross investment is the total addition to the capital stock during a period, including the replacement of capital worn out (depreciation): gross investment = net investment + depreciation.

    1 mark

  2. (ii) The image (a crane building a flyover, residential houses, and a warehouse of stocked goods) shows gross public investment and gross residential construction investment (also inventory investment).

    1 mark

  3. (iii) Gross public investment is spending by the government on creating fixed assets such as roads, flyovers, bridges and dams. (Or: residential construction investment is spending on building houses; inventory investment is the change in stocks of goods.)

    2 marks

Answer: (i) Addition to capital stock including depreciation. (ii) Public investment and residential construction (also inventory). (iii) Public investment: government spending on assets like roads and dams.

Where the marks are

  • Definition of gross investment (1)
  • Two components identified (½ + ½)
  • One component explained (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 paper2026 board paper, set 58/5/1: 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.