6
QuizMultiple Choice

Profit — Quiz

Question 6 • Personal Finance and Economics

What is the difference between profit and revenue?

Answer
A
Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
B
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.
C
Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
D
Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.

Explanation

Revenue is the total money a producer receives from selling a good. Profit is what remains after subtracting the costs of producing it from revenue. Therefore, choice A correctly distinguishes revenue from profit; the other choices confuse revenue with costs or reverse the definitions.

AI-written and checked against the verified answer.

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