The Following Information Pertains to the Richardson County General Fund

question 5

Multiple Choice

The following information pertains to the Richardson County General Fund: $\begin{array}{lr}\text { Appropriations } & \$ 10,000,000 \\\text { Estimated Revenues } & 12,000,000 \\\text { Expenditures } & 12,800,000 \\\text { Revenues } & 9,200,000 \\\text { Long-term note issue proceeds } & 1,000,000 \\\text { Short-term note principal retirements } & 250,000 \\\text { Operating transfers to other funds } & 75,000\end{array}$
The change in Richardson County's General Fund fund balance for the year is a

• A) $2,600,000 decrease.
• B) $2,675,000 decrease.
• C) $2,925,000 decrease.
• D) $3,600,000 decrease.

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Definitions:

Excess Capacity

Plant resources that are underused when imperfectly competitive firms produce less output than that associated with achieving minimum average total cost.

Product Differentiation

A marketing strategy that businesses use to distinguish their products or services from those of competitors.

Competitive Element

A factor that distinguishes a company in the marketplace, often related to quality, price, or innovation, aiding in achieving a competitive advantage.

Elastic Demand

A situation in which the quantity demanded of a product or service changes significantly in response to a change in price.