Which economic indicator reflects both the sales price and the quantity of goods sold?

Prepare for the GCSE Business Exam with targeted flashcards and multiple choice questions. Get hints and explanations for each question. Excel in your exam!

The correct answer is Sales Revenue because it represents the total income generated from sales of goods or services, which is calculated by multiplying the sales price of items by the quantity sold. This indicator provides a direct measure of a company’s financial performance and overall market activity during a specific period.

For instance, if a business sells 100 units of a product at a price of $20 each, the sales revenue would be $2,000. This figure encompasses both aspects of sales—the price at which the products are sold and the volume of goods sold, making it a clear reflection of economic activity within the business.

While Gross Domestic Product measures the total value of all goods and services produced in a country, it does not specifically indicate sales price or quantity. Net Income represents the profits after expenses are deducted from revenue but does not directly illustrate sales performance. Market Value refers to the total value of a company based on its share price and outstanding shares, focusing more on stock market perception than actual sales transactions.

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