Practise 34 real Federal Board questions on National Income from 2023 to 2026. See the answer and explanation as soon as you answer.
National Income is one of the 8 main chapters in our Federal Board I.Com Economics question bank (11th and 12th class), and about 10% of its real questions come from it. Tayyari Karo has 34 real questions on this chapter from 2023 to 2026; 17 are multiple choice and marked instantly, and the rest are short and long questions with a model answer. By difficulty: 23 medium, 11 easy.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
Which of the following is a transfer payment?
Answer: B. Pension
A pension is paid without a corresponding current good/service in return, making it a transfer payment; salary, bus fare, and college fee are payments for services rendered.
Main elements of circular flow of national income are:
Answer: C. Households and firms
The circular flow of income is built on the continuous exchange of factor services and payments, and goods and expenditure, between households and firms.
Accounting period of national income in Pakistan is:
Answer: A. 12 months
National income in Pakistan is measured over a 12-month accounting period (the fiscal year).
By subtracting depreciation allowance from Gross National Product, we get:
Answer: D. Net National Product
NNP = GNP − depreciation (capital consumption allowance).
The ratio between consumption and income is called:
Answer: A. Average propensity to consume
APC = Consumption / Income — the ratio between total consumption and total income.
Which of the following is NOT a "Transfer payment"?
Answer: D. Depreciation
Depreciation is a cost allowance for wear and tear of capital, not a transfer payment (payment without a corresponding good/service).
What is national income? Explain the various concepts of national income.
National income is the total monetary value of all final goods and services produced by the normal residents of a country during a given year.
Various concepts of national income:
(1) Gross National Product (GNP): the total value of all final goods and services produced by a country's nationals (at home and abroad) in a year.
(2) Gross Domestic Product (GDP): the total value of all final goods and services produced within the geographical boundaries of a country, regardless of who produces them. GDP = GNP − net income from abroad.
(3) Net National Product (NNP): GNP minus depreciation (capital consumption allowance). NNP = GNP − Depreciation. …
The full model answer is in the app.
What is circular flow of national income?
The circular flow of national income shows the continuous flow of money, goods and services between households and firms. Households supply factors of production (land, labour, capital, entrepreneurship) to firms and receive factor payments (rent, wages, interest, profit) in return; firms use these to produce goods/services sold back to households, who spend their income on them. This forms a continuous circular flow — an inner loop of real goods/factor services and an outer loop of matching money payments — which repeats endlessly through the economy.
| Session | Questions |
|---|---|
| 2026 Annual | 3 |
| 2025 1st Annual | 7 |
| 2025 2nd Annual | 7 |
| 2024 Annual | 10 |
| 2023 Annual | 7 |
34 real Federal Board (FBISE) Economics questions on National Income from 2023 to 2026, for 11th and 12th class. Each one shows the session it came from.
No. We could not find an official FBISE marking scheme for these papers, so the answers and explanations are written by Tayyari Karo for practice. Check anything important with your teacher or textbook.
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