Harvey Quit His Job at the University of Toronto Where

question 103

Multiple Choice

Harvey quit his job at the University of Toronto where he earned $45,000 a year,the same as other employees of normal ability,the same as other employees of normal ability.But Harvey is unusually talented in another area,and he figures his entrepreneurial talent,or forgone entrepreneurial income,to be $5000 a year.He cashed in $100,000 in bonds that earned 10% interest annually to buy a software company,Extreme Gaming.In the first year,the firm sold 11,000 units of software at $75 per unit.Of the $75 per unit,$55 goes for the costs of production,packaging,marketing,employee wages and benefits,and rent on a building.
-Refer to the above information.The economic profit in the first year was

• A) $50,000.
• B) $70,000.
• C) $160,000.
• D) $220,000.
• E) $250,000.

---

Definitions:

Strong Situation

Scenarios where social norms and roles are clearly defined, heavily influencing individual behavior.

Clear Norms

Explicitly defined rules and standards of behavior within a group or society.

Weak Situation

A scenario where social norms and expectations are unclear, leaving individuals more free to act based on their personality.

Schwartz

Refers to Shalom Schwartz, a social psychologist known for his work on identifying universal aspects of human values and their influence on behavior.