Economics (AS & A Level) · Oct / Nov 2022 · Paper 33 · Question 15

The table shows the average incomes of the richest 20% of households and the poorest 20% of households in the UK (2015–2016), and the effects of government taxation and benefits on average income. What can be concluded from the information in the table?

1. AThe effects of direct taxation have affected the rich less than the poor.
2. BThe government’s policy achieved income equality across households.
3. CThe government redistributed all income taken from the rich to the poor.
4. DThe government’s policy reduced the income inequality between the poor and the rich.

As printed in the paper