A Small Business Owner Earns $50,000 in Revenue Annually

question 77

Multiple Choice

A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000. The owner could work for someone else and earn $25,000 annually. The owner's business profit is ________ and the economic profit is ________.

• A)$20,000, $20,000
• B)$20,000, -$5,000
• C)$25,000, -$5,000
• D)$25,000, $20,000

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Definitions:

Facial Feedback Hypothesis

A psychological theory suggesting that facial expressions can influence emotional experiences, such as smiling leading to feeling happier.

James-Lange Theory

A hypothesis that emotional experiences arise from physiological arousal rather than the other way around.

Mislabel

To incorrectly or inappropriately assign a label or description to someone or something.

Arousal States

Psychological and physiological conditions of being alert, awake, and attentive.