20
practice examMultiple Choice

Practice Exam

Question 20 • Personal Finance and Economics

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

Answer
A
the money the company earns after paying all of its production costs.
B
the amount the company receives from the sale of all of its computer parts.
C
the total wages the company pays workers in its factories and stores.
D
the amount of money the company earns from selling an individual part.

Explanation

Total revenue is the money a company receives from selling all the goods it sells. For Motherboards, Inc., that means the amount received from the sale of all its computer parts. Wages and production costs are expenses, and subtracting costs from revenue gives profit, not total revenue.

AI-written and checked against the verified answer.

Previous
Next