Philip Owns and Operates a Gas Station

question 13

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 $600 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 $500 per week, the business's economic profits are

• A)$500 per week.
• B)-$100 per week.
• C)$400 per week.
• D)$0 per week.
• E)$1,000 per week.

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Definitions:

European Army

A hypothetical or proposed unified armed forces entity representing the collective military capabilities of European Union member states.

Abyssinia

Abyssinia is the historical name for the Ethiopian Empire, a kingdom in the Horn of Africa known for its ancient culture and resistance to colonial conquest.

British Government

The central government of the United Kingdom, consisting of the monarch, the Parliament, and the executive, responsible for national policy and administration.

Boers

Descendants of the Dutch-speaking settlers of the Cape Colony in southern Africa during the 17th and 18th centuries, known for their role in the Boer Wars against British rule.