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Economics (AS & A Level) · May / June 2022 · Paper 13 · Question 2

9708Economic methodology

The table shows the amount of direct taxes that different households in the UK paid in 2017–2018. | | bottom 20% of households | second 20% of households | middle 20% of households | fourth 20% of households | top 20% of households | |---|---|---|---|---|---| | average income (£) | 15 300 | 25 000 | 34 600 | 47 600 | 90 600 | | direct tax paid (£) | 2 000 | 3 500 | 6 000 | 9 500 | 21 200 | Which positive economic statement can be made from the table?

  1. ADirect tax is unfair on the richer households in the UK.
  2. BDirect tax in the UK is a proportional tax.
  3. CPoorer households do not pay enough direct tax in the UK.
  4. DRich households pay more direct tax than poor households in the UK.

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Correct answer: D. Rich households pay more direct tax than poor households in the UK.

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