Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's economic profits?
A. $138,000
B. $78,000
C. $150,000
D. $142,000
Answer: B
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Answer the following statement true (T) or false (F)
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Indicate whether the statement is true or false
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A. 7.7 per cent B. 10 per cent C. 13 per cent D. 50 per cent