O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2023 · Q221 Mark

What is a likely consequence of a falling level of unemployment?

Adownward pressure on wage rates

Bincrease in welfare benefit payments

Crise in absolute poverty

Drise in income tax revenue

✓ Correct answer

D: rise in income tax revenue

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Topic: Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2023 Paper 1 Variant 2, question 22.

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