PPSCFPSCNTSPakistan govt jobs
Subject
Income Inequalityeconomics-mcqs › income-inequality
Published
1 Jun 2019
Last updated
28 May 2026

Browse all Income Inequality MCQs

How does a recession-induced unemployment period impact a worker's income?

Multiple choice question for Income Inequality. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Option A is correct because during a recession, unemployment can sometimes lead to increased current income through mechanisms like unemployment benefits or government stimulus, which may also raise the worker's permanent income expectations. Other options incorrectly describe the impact on current and permanent income.

Practice related questions from the same subject.

  1. 1.Which of the following best describes the Benazir Benefit Income Scheme?
  2. 2.Which category of tax does VAT best represent?
  3. 3.When a tax can be transferred, what determines the actual burden of the tax?
  4. 4.What does tax incidence refer to?
  5. 5.What does a progressive income tax system imply about the tax rate for individuals with higher earnings?

PakQuizHub — free MCQs and past papers for Pakistan government job tests. Content is for educational practice only.