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?

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 2 Person 3 Person 4 Person 5 Option G 30 0 80 0 40 Option P 0 70 0 50 0