Who Are the Only Ones Not Affected by a Pigouvian

question 19

Multiple Choice

Who are the only ones not affected by a Pigouvian tax when a negative externality exists in a market?

• A) Producers
• B) Consumers
• C) Those affected by the externality
• D) All of these groups are affected when it becomes internalized.

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Definitions:

Sales Budgets

Detailed projections of a company’s sales revenue for a specific period, used for planning and control purposes.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the expected cost during a specific period.

Manufacturing Overhead Budget

A planned document detailing the expected manufacturing overhead costs for a specific period, helping managers in the decision-making process regarding the allocation of resources.

Sales Budget

A detailed forecast of future sales, typically the first step in the budgeting process, driving the company's production, workforce, and financial planning.