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The cost of creating a programme of twice weekly lateral ow tests for COVlD-19 is 2 per capita. There are three groups of citizens all

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The cost of creating a programme of twice weekly lateral ow tests for COVlD-19 is 2 per capita. There are three groups of citizens all one third of the population that receive benets of 8, 3 and 1 if the policy is implemented. (a) Do you expect the program to be implemented in the absence of government? (b) Suppose that the government implements the program with an equal tax on all citizens Who gains and who loses compared to part (a)? (0) Suppose that citizens vote over whether to implement the program with a uniform tax and then citizens from each group decide whether to implement the program if it has not been imple- mented. What do you expect the outcome to be? (d) Suppose now that each group decides whether to implement the program and then citizens vote whether to implement the program if it has not been implemented by any group. What do you expect the outcome to be? (e) Discuss why the answers to (c) and (d) differ (if you think they do)

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