Mr Sweet Opened a Candy Store

question 292

Multiple Choice

Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's economic profit?

• A) $20,000
• B) -$20,000
• C) zero
• D) $35,000

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Definitions:

Phrenology

Phrenology is a now-discredited theory that suggested the shape and size of the cranium could be used to determine personality traits and mental abilities.

Psychological Laboratory

A controlled environment where experiments related to psychology and human behavior are conducted.

Sigmund Freud

The pioneer of psychoanalysis, known for his theory of the unconscious mind and mechanisms of repression.

Austrian Physician

A reference to a medical doctor from Austria, often associated with notable figures in psychology and psychiatry such as Sigmund Freud.