At the End of the 2020 Fiscal Year the General

question 61

Multiple Choice

At the end of the 2020 fiscal year the General Fund had $500 in encumbrances that remained opened into fiscal year 2021. In 2021 the encumbered goods were received at an invoiced cost of $520. How much would be recorded as the 2021 expenditure?

• A) $0.
• B) $20.
• C) $500.
• D) $520.

Recognize the circumstances under which contracts can be void, voidable, or enforceable.

Identify the rights and obligations of minors in contract law.

Understand the legal implications of entering into contracts while intoxicated.

Know the effect of illegality and public policy on the enforceability of contracts.

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Definitions:

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.

Socially Optimal

A condition or point where the social welfare, including both consumer and producer welfare, is maximized, often considered in the analysis of market efficiency and interventions.

Pure Competition

A market structure characterized by a large number of small firms, homogeneous products, and easy entry and exit, leading to price taking behavior.

Long Run

A period in which all inputs can be adjusted by firms, allowing new firms to enter or exit the industry.