6. Which of the following is true when a company operates at its breakeven point?

-The company needs to shut down its operations

-Total revenue is greater than total expenses

-Total revenue is less than total expenses

-Total revenue is equal to total expenses

7. "A retailer sold merchandise for $8,000, terms 2/10, n/30. The buyer was then given credit for $1,000 of merchandise returned. If the invoice is paid within the discount period, what is the amount of cash received by the seller?"

-"$6,840 "

-"$6,860 "

-"$7,000 "

-"$7,840 "

8. Which of the following is the best definition of economics?

-The study of how individuals and societies choose to use scarce resources

-The study of how consumers spend their incomes

-The study of how firms decide what inputs to hire and what outputs to produce

-The study of how the federal government allocates tax dollars

9. "If something has an opportunity cost, we should:"

-avoid that action.

-take that action.

-be sure that the benefit of the action exceeds the cost.

-be sure that the cost of the action exceeds the cost.

10. Producing the most-wanted products in the least costly way is:

-full employment.

-economic growth

-a fair income distribution.

-economic efficiency.