Theory 2 Prices, Revenue, Costs and Profit

Question 1

The Total amount of money made from selling a product/service is

Accepted Answer

Revenue, Income

Question 2

A Variable Cost...

Accepted Answer

Changes when production increases

Question 3

The quantity of product the public will buy is...

Accepted Answer

Demand

Question 4

Revenue minus Total Costs equals

Accepted Answer

Taxable Profit, Net Profit

Question 5

The correct spelling is...

Accepted Answer

Equilibrium

Question 6

Profit equals...

Accepted Answer

Income minus costs, Revenue minus Costs

Question 7

Which of these would be a Fixed cost?

Accepted Answer

Managers salary, Loan repayment

Question 8

Revenue minus Variable costs equals...

Accepted Answer

Gross Profit

Question 9

If Demand for a product rises...

Accepted Answer

Suppliers will want to make more, Price will rise

Question 10

If Demand for a product falls...

Accepted Answer

Suppliers will want to make less, Price will fall

Question 11

If the price of a product is too high...

Accepted Answer

Demand will fall, Less will be demanded

Question 12

The amount spent to make a product or supply a service is

Accepted Answer

Costs

Question 13

Which of these would be a variable cost

Accepted Answer

Materials used to make a product

Question 14

Total Costs are calculated by...

Accepted Answer

Fixed costs plus Variable costs

Question 15

The amount of product a business is willing to make at a certain price is...

Accepted Answer

Supply

Questions 15