Q.3 A community of five (05) persons needs to decide whether they should use their (pooled)...

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Q.3 A community of five (05) persons needs to decide whether they should use their (pooled) resources for making a domestic game facility (G) or going out for a picnic trip (P). The table below gives the true benefits that each derives from each option. Determine the Clarke tax of each individual. If (i) Person 2 states that his benefit is 100 (ii) Person 3 states that his benefit is only 60, (iii) Persons 2 and 4 each overstates their benefit by 20, will their Clarke tax liabilities change? Will their total tax liabilities change? Person 1 Person 4 Person 5 Person 2 0 Person 3 80 30 0 40 Option G Option P 0 70 0 50 0 Q.3 A community of five (05) persons needs to decide whether they should use their (pooled) resources for making a domestic game facility (G) or going out for a picnic trip (P). The table below gives the true benefits that each derives from each option. Determine the Clarke tax of each individual. If (i) Person 2 states that his benefit is 100 (ii) Person 3 states that his benefit is only 60, (iii) Persons 2 and 4 each overstates their benefit by 20, will their Clarke tax liabilities change? Will their total tax liabilities change? Person 1 Person 4 Person 5 Person 2 0 Person 3 80 30 0 40 Option G Option P 0 70 0 50 0

Answer rating: 100% (QA)

The Clarke tax for each individual would be as follow... View the full answer