Scenario 13-7 Julia Prepares Tax Returns and Does Bookkeeping. Last Year Her

question 369

Multiple Choice

Scenario 13-7
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000, and her expenses for the business were $15,000. When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting business.
-Refer to Scenario 13-7. Julia's economic profits are

• A)$160,000.
• B)$150,000.
• C)$135,000.
• D)$125,000.

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Definitions:

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for the best performance on any task: too little or too much arousal can decrease performance.

Arousal Level

refers to the state of being physiologically alert, awake, and attentive, involving mechanisms within the nervous system.

Industrial/Organizational Psychologists

Psychologists specializing in the application of psychological principles and techniques to workplace environments, issues, and behaviors.

Behavior Modification

A treatment approach, based on the principles of operant conditioning, that replaces undesirable behaviors with more desirable ones through positive or negative reinforcement.