Which term describes the financial gain made in a transaction?

Prepare for the Fundamentals Domain - Economics Exam with comprehensive resources including multiple choice questions, detailed explanations, and practice flashcards. Ensure success in your economics test!

The term that describes the financial gain made in a transaction is profit. Profit is defined as the difference between the total revenues generated from the transaction and the total costs associated with it. In other words, profit indicates how much money a business or individual has earned after accounting for all expenses. This concept is fundamental in economics and business, as it reflects the efficiency of operations and overall financial health.

Revenue refers to the total income received from sales of goods or services before any costs or expenses are deducted; it does not consider the costs incurred. Dividends are payments made to shareholders from a corporation's profits, not directly a reflection of the gain from a specific transaction. Yield typically refers to the earnings generated and realized on an investment over a specified period, often expressed as a percentage; it is more related to return on investment rather than direct transaction gain.

Thus, profit captures the essence of the financial outcome of a transaction, making it the correct answer.

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