The Fire Department of a Certain City Received an Appropriation

question 129

Multiple Choice

The Fire Department of a certain city received an appropriation in the amount of $12,000,000 for the fiscal year ended December 31,2012.During the month ended January 31,2012,the following transactions occurred: (a) purchase orders were issued in the amount of $400,000; (b) purchase orders,related to (a) above,were filled in the amount of $380,000; the related invoice amount was $368,000; invoices were paid in the amount of $350,000; (c) salaries were accrued and paid in the amount of $575,000; (d) the appropriation was increased in amount of $100,000.The amount available for the Fire Department as of January 31,2012 would be:

• A) $10,787,000.
• B) $11,037,000.
• C) $11,077,000.
• D) $11,057,000.

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Definitions:

Economic Profits

The difference between a firm's total revenue and its opportunity costs; also known as supernormal profit.

Price Elasticity Of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Marginal Cost

The increase in total production cost that comes from making or producing one extra item.

Production Function

Refers to the relationship between input resources (like labor, land, and capital) and the output produced by these resources.