Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

The table gives figures for the average incomes of the richest 20% of households and the poorest 20% of households in the UK (2015–2016), as well as the impact of government taxation and benefits on average income. What can be concluded from the table’s information?

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

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