Philip Owns and Operates a Gas Station

question 19

Multiple Choice

Philip owns and operates a gas station.Philip works 40 hours a week managing the station but doesn't draw a salary.He could earn $800 a week doing the same work for Terrance.The station owes the bank $100,000 and Philip has invested $100,000 of his own money.If Philip's accounting profits are $1,000 per week while the interest on his bank debt is $300 per week, the business's economic profits are

• A)-$100 per week.
• B)$200 per week.
• C)$0 per week.
• D)$700 per week.
• E)$1,000 per week.

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Definitions:

Hassles

Minor irritations and annoyances that are part of everyday life and can accumulate to impact one's mental health and well-being.

Psychological Hardiness

Refers to a personality characteristic that involves a sense of control, commitment, and embracing challenge as a means of personal growth, which helps individuals to manage stress more effectively.

Stress

The body's response to any demand or challenge, which can be triggered by both positive and negative experiences.

Denial

A psychological defense mechanism involving refusal to accept reality or facts, thus avoiding a painful or uncomfortable truth.