Economics Multiple Choice Question – 13 July 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which statement about total revenue is correct?

Select ONE answer:

  1. It is always equal to total cost.
  2. It is always equivalent to profit.
  3. It is maximised when the price elasticity of demand is inelastic.
  4. It is price multiplied by the quantity sold.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

  1. Costs and revenue are determined separately. Costs may be less than, equal to or greater than revenue.
  2. Total revenue is not the equivalent of profit
  3. Total revenue is maximised when price elasticity of demand = -1
  4. Correct: Total revenue of a firm = the price of each unit times the number of units sold.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.