Free Printable Revenue Analysis

1.

This is the term given to how many products/services a business produces.

a)

Output

b)

Cost

c)

Fixed Cost

d)

Variable cost

2.

The things a business has to pay for in order to start-up and operate on a daily basis.

a)

Output

b)

Costs

c)

Profit

d)

Revenue

3.

Revenue is...

a)

Sales revenue – total costs

b)

Selling price x number of units sold

c)

Fixed costs + variable costs

d)

cost that is independent of output

4.

The price at which goods or services are offered by a business to their customers is called

a)

Selling price

b)

Cost

c)

Variable cost

d)

Currency

5.

The stage at which sales revenue equals the total cost of producing a good or service and the business is making neither a profit nor a loss is the

a)

Taking a break

b)

Breaking point

c)

Point of sale

d)

Breakeven point

6.

A positive difference between the revenues taken in by a business and the costs of operating a business (when a business makes more than it spends). :D

a)

Loss

b)

Profit

c)

Breakeven

d)

Sales

7.

Which of the following is the best definition of REVENUE?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has LEFT over after paying for their costs.

c)

The total amount of money a business spends.

d)

The amount of money a business loses every month.

8.

Which of the following is the best definition of REVENUE?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has LEFT over after paying for their costs.

c)

The total amount of money a business spends.

d)

The amount of money a business loses every month.

9.

Which of the following is the best definition of PROFIT?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for their costs.

c)

The total amount of money a business spends.

10.

Which of the following is the best definition of COSTS?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for materials.

c)

The total amount of money a business spends.

11.

Which of the following is the equation for figuring out PROFIT?

a)

Profit = Revenue - Cost

b)

Profit = Cost - Revenue

c)

Revenue = Profit - Cost

d)

Costs = Profit - Revenue

12.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total REVENUE?

a)

$25

b)

$225

c)

$375

d)

$750

13.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total COST?

a)

$25

b)

$225

c)

$375

d)

$750

14.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total PROFIT?

a)

$25

b)

$225

c)

$375

d)

$750

15.

Your business rents a building on Main Street in Cedar Falls. Every month you pay exactly $750 to rent the building. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

16.

If you own a home, you must pay for electricity you use. The amount you pay changes every month depending on how much you use. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

17.

You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...

a)

FIXED cost.

b)

VARIABLE cost.

18.

You own a lawn-care business and you have two employees. You pay these employees a salary meaning you pay each of these workers $900 every month no matter how much they work. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

19.

You have a straight-talk cell phone plan. This means that your cell phone bill is always changing depending on how many texts you send, how much internet you use, and how many calls you make. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

20.

You have just bought a new car for your 16th birthday. However, you didn't have enough money to pay for the whole car so you took out a loan. Now, every month you must pay exactly $100 for a loan on your car. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

21.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his REVENUE for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

22.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his COSTS for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

23.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his PROFIT for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

24.

Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's REVENUE over the summer?

a)

$150

b)

$200

c)

$300

d)

$500

25.

Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's COSTS over the summer?

a)

$150

b)

$200

c)

$300

d)

$500

26.

Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's PROFIT over the summer?

a)

$150

b)

$200

c)

$300

d)

$500

27.

Average revenue is equal to

a)

Price

b)

Total revenue

c)

Total cost

28.

Total revenue -total cost=

a)

average cost

b)

Profit

c)

Marginal cost

29.

Total revenue curve in perfect market is

a)

Upward sloping

b)

Downward sloping

c)

Both

30.

If average revenue is a horizontal straight line , then marginal revenue curve will be:

a)

Downward sloping

b)

Horizontal straight line

c)

Upward sloping

d)

Inversely S- shaped

31.

Can MR be negative or zero.

a)

True

b)

False

32.

What is price line

a)

The demand curve

b)

The AR curve

c)

The MR curve

d)

The TR curve

33.

The revenue of a firm per unit sold is its

a)

MR

b)

AR

c)

TR

d)

TC

34.

Average revenue is also known by ....

a)

Price

b)

TR - TC

c)

MR

d)

TR ÷ MR

35.

In a Perfect Competition market there is .....

a)

P = AR

b)

P = MR

c)

P = AR - MR

d)

P = AR = MR

36.

In the imperfect competition market, when demand curve or AR is a straight line then MR passes through ...........

a)

Mid-way from AR and Y-axis

b)

Parallel to AR

c)

Nearer by Y-axis

d)

Nearer by AR

37.

What is Revenue

a)

Income from selling products or services

b)

The money being paid out for bills

c)

The money kept by an entrepreneur after costs are paid

d)

The selling price of each of the items

38.

Calculate the revenue if a business sells 80,000 units at $2.50 each

a)

$200,000

b)

£200,000

c)

£20,000

d)

$20,000

39.

What is the formula for Revenue?

a)

Total Sales + Costs = Revenue

b)

Number of Sales x Price per unit = Revenue

c)

Price per unit x Total Costs = Revenue

d)

Number of Sales - Total Costs = Revenue

40.

Producer's equilibrium is a situation of 'revenue maximisation'

a)

True

b)

False

41.

If the marginal revenue is less than the marginal cost then to profit maximize a firm should:

a)

Increase costs

b)

Leave output where it is

c)

Increase output

d)

Reduce output

42.

Under perfect competition, for the producer to be in equilibrium:

a)

AR=MR=AC, and AC must be rising

b)

AR=MR=MC and MC must be falling

c)

AR=MR=MC and MC must be rising

d)

AR=MR=TC and TC must be rising

43.

Equality between MR and MC is a sufficient condition for profit maximisation.

a)

True

b)

False

44.

What is meant by Producer's Equilibrium?

a)

Losses are maximised

b)

Marginal utility is minimised

c)

Cost is maximised

d)

Profits are maximised

45.

Choose the options that determine the relationship between MR and TR.

a)

When MR is 0, TR at the highest point.

b)

When MR is positive, TR increases.

c)

MR is zero when TR is decreasing.

d)

TR is zero when MR is at the highest point.

e)

TR is decreasing when MR is negative.

46.

Select the correct equation:

a)

TR= $\Sigma$ AR

b)

MR= $\frac{\Delta TR}{\Delta Q}$

c)

$TR=\frac{AR}{Total\ Output}$

d)

AR = TR x Total Output

47.

Marginal revenue can be defined as

a)

revenue received from selling one extra unit of production

b)

price x quantity

c)

revenue - costs

d)

total revenue divided by quantity

e)

the change in total revenue

48.

The shutdown point in the short run is where.......

a)

AR=AC

b)

MR=MC

c)

AR<AVC

d)

AR>AVC

e)

AR=AVC

49.

A firm in the long run will shutdown when

a)

AR=AC

b)

AR>AC

c)

MR=MC

d)

AR<AC

e)

AVC=AFC

Revenue Analysis

Total questions: 49

Worksheet time: 1hrs 10mins

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