According to the World Inequality Report 2018 released by the World Inequality Lab in Paris, which of the following countries listed here shows the highest level of income inequality?

Introduction / Context:
Income inequality refers to how unevenly income is distributed among individuals or households within a country. The World Inequality Report 2018, prepared by the World Inequality Lab based in Paris, analyses how income and wealth are shared across different regions and countries. For general knowledge and economics oriented exams, questions may ask which country has a particularly high level of inequality according to such reports. This question focuses on comparing four South Asian and Asian countries mentioned in the options and identifying which one shows the highest income inequality according to the report.

Given Data / Assumptions:
- The source is the World Inequality Report 2018 from the World Inequality Lab.
- The question restricts the comparison to Pakistan, Bangladesh, India and China.
- We are asked to pick the country with the highest income inequality among these four.
- Standard interpretations of the report used in exam material are assumed.

Concept / Approach:
The World Inequality Report 2018 highlights that the share of national income going to the top income groups has increased in many countries. Among large economies, India is often cited as having very high levels of income inequality, with the top 10 percent and especially the top 1 percent capturing a large share of total income. In South Asia, this report and related analyses point out that India displays more pronounced inequality than neighbours like Pakistan and Bangladesh, and it is frequently described as one of the most unequal countries among major economies. Therefore, within the set of four options provided, India is identified as having the highest income inequality in the context of the report.

Step-by-Step Solution:
Step 1: Recall key messages from the World Inequality Report 2018, especially regarding India.
Step 2: Note that the report emphasises a strong rise in income concentration at the top in India.
Step 3: Compare India with Pakistan and Bangladesh, where inequality is high but not highlighted to the same extent in the report for global comparisons.
Step 4: Compare India with China, where inequality is also serious, yet exam oriented summaries often single out India as more unequal among the major economies in this region.
Step 5: Conclude that among the listed options, India is the appropriate answer.

Verification / Alternative check:
Many newspapers and analysis pieces that discussed the World Inequality Report 2018 carried headlines such as “India among countries with highest income inequality” or “India has extremely high income inequality among major economies.” Exam preparation guides and current affairs magazines summarised this finding by stating that the report shows India with very high income inequality. When options are limited to Pakistan, Bangladesh, India and China, these summaries clearly support choosing India as the country displaying the highest inequality in this context.

Why Other Options Are Wrong:
- Pakistan: Although Pakistan faces many economic challenges, the World Inequality Report 2018 does not single it out as having higher inequality than India when both are discussed together in exam oriented summaries.
- Bangladesh: Has its own inequality concerns, but again, the focus in commentary around the report in South Asia was more on India as a striking case of high income concentration.
- China: Income inequality in China is also relatively high, yet several discussions of the report emphasise that India exhibits very sharp inequality levels, particularly among large democracies, making China a less suitable choice among these options.

Common Pitfalls:
Students may overthink the question by considering broader debates about inequality in different countries, instead of focusing on how the World Inequality Report 2018 was presented in exam material. Others may guess China because of rapid growth and regional disparities there. To avoid errors, learners should remember that competitive exam capsules often summarised the report with a clear statement that India shows very high income inequality among large economies. Associating the phrase “World Inequality Report 2018” with “India has very high income inequality” is a helpful memory aid.

Final Answer:
According to the World Inequality Report 2018, the country with the highest income inequality among the options listed is India.