Gross Earnings

question 110

Multiple Choice

Gross earnings

• A) is the net compensation received by employees.
• B) is the total wage cost for an employee.
• C) excludes any bonuses paid to employees.
• D) is the total compensation earned by an employee.

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Definitions:

How Much Decision

A consumer's determination of the quantity of a good or service to purchase, balancing the marginal utility and the price.

Total Revenues

The total amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Total Costs

An alternate formulation for the sum of all expenses incurred in the production of goods or services, reflecting both fixed and variable components.

Profit

The financial gain obtained when the revenue from business activities exceeds the costs and expenses associated with operating the business.