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

1. 13What can be concluded from the information in the table? A The effects of direct taxation have affected the rich less than the poor. B The government's policy achieved income equality across households. C The government redistributed all income taken from the rich to the poor. D The government's policy reduced the income inequality between the poor and the rich.[1]

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