Answers TX-Economics IC Summer 25-26 Unit Test — Unit testQuestion 23

23

QuizMultiple Choice

Unit Test — Unit test

Question 23 • TX-Economics IC (Summer 25-26)

What is the difference between profit and revenue?

Answer

R

Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.

R

Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.

R

Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.

R

Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good.

Explanation

Revenue is the total money a producer receives from selling a good. Profit is what remains after subtracting the costs of producing it: profit = revenue − production costs. Therefore, choice A correctly distinguishes revenue from profit.

AI-written and checked against the verified answer.