Figure 10-2 -Refer to Figure 10-2.Assume the Production of Plastic Imposes a Plastic

question 344

Multiple Choice

Figure 10-2
-Refer to Figure 10-2.Assume the production of plastic imposes a cost on society of $2.00 per unit.If the free market equilibrium output is 650 units,the government should

• A) impose a tax of $1.50 per unit.
• B) increase the output of the firm by 50 units.
• C) offer a subsidy of $2.00 per unit..
• D) impose a tax of $2.00 per unit.

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Definitions:

Anticipated Cash Inflow

Expected or forecasted cash receipts from operations, investments, and financing activities within a future period.

Credit Sales

Transactions where goods or services are sold and payment is deferred, resulting in accounts receivable for the seller until the buyer pays at a later date.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, crucial for managing liquidity and financing needs.

Cash Receipts

The collection of money (cash, checks, electronic transfers) received by a business from its operational activities.