Scenario 13-2 Zach Withdrew $400,000 Out of His Personal Savings Account and Account

question 291

Multiple Choice

Scenario 13-2
Zach withdrew $400,000 out of his personal savings account and used it to start his new cookie business.The bank account pays 3 percent interest per year.During the first year of his business,Zach sold 6,000 boxes of cookies for $2.50 per box.Also during the first year,the cookie business made monetary outlays of $9,000.You may assume that there is no opportunity cost to Zach's time.
-Refer to Scenario 13-2.Zach's economic profit for the year was

• A) $-506,000.
• B) $-6,000.
• C) $3,000.
• D) $6,000.

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Definitions:

Classical Conditioning

An instructive method involving the repeated pairing of two stimuli; a response, initially elicited by the second stimulus, is in time elicited by the first stimulus independently.

Operant Conditioning

A method of learning where behavior alteration occurs through the application of incentives or consequences.

Associate

To connect or link in one's mind, often referring to the process of forming mental connections between ideas, objects, or experiences.

Law Of Effect

A psychological principle stating that behaviors followed by satisfying consequences are more likely to be repeated, while those followed by unpleasant consequences are less likely to be repeated.