Refer to Scenario 7

question 224

Multiple Choice

Refer to Scenario 7.4 below to answer the question(s) that follow.
SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters.
Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000.
To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.
-Refer to Scenario 7.4. Your economic profit last year was

• A) -$20,000.
• B) $40,000.
• C) $70,000.
• D) $90,000.

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Definitions:

Initiative V. Guilt

A stage in Erik Erikson's theory of psychosocial development where young children learn to assert control and power over their environment or experience guilt for their efforts.

Egalitarian

A belief or doctrine that emphasizes equality, especially regarding moral, political, social, and economic rights for all humans.

Sensitivity

The quality of being easily influenced, changed, or affected by external conditions or stimuli.

Authoritative Parenting

A parenting style characterized by high responsiveness and high demands, where parents set clear standards, are assertive but not intrusive or restrictive.