Harvey Quit His Job at State University, Where He Earned

question 192

Multiple Choice

Harvey quit his job at State University, where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. The economic profits of Harvey's firm in the first year were

• A) $70,000.
• B) $160,000.
• C) $220,000.
• D) $280,000.

---

Definitions:

U.S.

A short form for the United States, a federation comprising 50 states, a federal district, and various territories, recognized for its strong economic and military capabilities.

September 11

The date of terrorist attacks in 2001 when hijacked planes crashed into the World Trade Center in New York City and the Pentagon, leading to widespread death and destruction.

Terrorist Attack

The use of violence or the threat of violence, especially against civilians, in pursuit of political goals.

Planning

The process of making detailed strategies or arrangements beforehand, typically to achieve a specific goal or to organize an event.