An Economic Variable That Measures Something at a Particular Point

question 65

Multiple Choice

An economic variable that measures something at a particular point in time is called a _____.

• A)stock variable
• B)periodic variable
• C)dummy variable
• D)flow variable
• E)constant variable

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Definitions:

Break-even Point

The point at which total revenue equals total costs, and no profit is earned or lost, often used to determine the feasibility of a business venture or product.

Unit Variable Expenses

Costs that vary directly with the production volume, calculated on a per-unit basis.

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, or utilities.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.