Sebastian Decides to Open a Tree Farm

question 67

Multiple Choice

Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his first year. Which of the following statements is correct? ​

• A)​Sebastian's total explicit costs are $15,400.
• B)​Sebastian's total implicit costs are $55,600.
• C)​Sebastian's accounting profit is $35,000.
• D)​Sebastian's economic profit is $4,600.

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Definitions:

Mental Health Service Delivery

The means by which mental health care services are provided to individuals, including diagnosis, treatment, and prevention strategies.

Deficit Theory

A theory suggesting that societal inequalities and individual failures result from deficiencies in cultural, social, or intellectual capacity.

Cultural Inferiority Theory

A theory suggesting that some cultures are inferior to others, often used historically to justify colonization and oppression.

Ethnically Diverse Groups

Collections of individuals from various ethnic backgrounds, emphasizing a mix of cultural identities, languages, and traditions within a group.