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.

average income average income
(£) of (£) of
richest 20% poorest 20%
before taxes and benefits 85000 7000
after direct taxes and cash benefits 68000 13000
after all taxes (direct and indirect) and all benefits 63000 17000

Q: What topic does this question test?

This question tests Government Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Economics May/June 2019 examination, Paper 3 Variant 2 (9708_s19_qp_32.pdf).

Question

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.

average income		average income
	(£) of			(£) of
	richest 20%		poorest 20%
before taxes and benefits	85000			7000
after direct taxes and cash benefits	68000			13000
after all taxes (direct and indirect) and all benefits	63000			17000

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