The amount of money a firm receives in the course of doing business; revenue is calculated by multiplying the quantity sold by the price

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Prepare for the Economics Test Out Exam. Utilize flashcards and tackle multiple choice questions with detailed explanations. Get exam-ready!

Multiple Choice

The amount of money a firm receives in the course of doing business; revenue is calculated by multiplying the quantity sold by the price

Explanation:
Revenue is the total money a firm brings in from selling its goods or services. It’s calculated by multiplying the quantity sold by the price per unit, so it rises with more sales or higher prices. This focuses on the money flowing into the business from sales, before costs are subtracted. It’s different from profit (which subtracts costs), and it’s not describing buyer behavior or market responses such as demand, elasticity, or substitute goods. Therefore, the term that matches the description is revenue.

Revenue is the total money a firm brings in from selling its goods or services. It’s calculated by multiplying the quantity sold by the price per unit, so it rises with more sales or higher prices. This focuses on the money flowing into the business from sales, before costs are subtracted. It’s different from profit (which subtracts costs), and it’s not describing buyer behavior or market responses such as demand, elasticity, or substitute goods. Therefore, the term that matches the description is revenue.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy