Refer to Problem 6. Suppose Jack earns $1,000 per month and Jill earns $11,000 per month. a.

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Refer to Problem 6. Suppose Jack earns $1,000 per month and Jill earns $11,000 per month.
a. Suggest a proportional tax on income that would be accepted by majority vote and would pay for the security guard.
b. Suppose instead that Jack proposes a tax scheme under which Jack and Jill would each receive the same net benefit from hiring the guard. How much would Jack and Jill pay now? Would Jill agree to this scheme?
c. What is the practical problem that prevents ideas like the one in part b from working in real-life situations?
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Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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