The Topping- Up Mechanism

question 49

Multiple Choice

The topping- up mechanism:

• A)insures Pareto optimality.
• B)is the most efficient transfer mechanism available.
• C)is also called the negative income tax.
• D)is a version of the welfare system.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Sales on Account

Transactions where goods are sold and delivered with the understanding that payment will be made at a later date.

Average Collection Period

The average number of days it takes for a business to receive payments from its customers for invoices issued.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or sold but not yet paid for.