Economics Unit 2 Exam

The difference between the wholesale and retail price is called…

A markup

A synonym for “a sale” is…?

A markdown

The surplus money after all expenses are paid for is called…

Profit

Retail stores usually buy their products from…

Wholesalers

Most stores in a mall are ___ stores.

Retail

How can the use of AI help businesses?

All of the above

Ray Kroc turned McDonald's from one restaurant to thousands through…

Franchising

What makes Ray Kroc an entrepreneur?

Expanding the business in new directions

Who, as the first Secretary of the Treasury, set up the economic system for the Unit

Alexander Hamilton

The highest cost for most businesses is…

Labor

For someone working a cash register in a store, important human capital would be…

Honesty

Typical examples of physical capital in a restaurant are…

Stove; Refrigerator

Which of the following would be considered store decor?

Posters

What would be the price of a $120 bicycle after a 25% markdown?

$90

If the ingredients of a smoothie cost 84c for a restaurant, which of the following is the most likely retail price of that smoothie?

$5

If the wholesale price of a pair of jeans is $20, which of the following would be the likely retail price of that pair of jeans?

$40

If you have a small business loan for $10,000 at 7% interest, how much money would you owe after one year?

$10,700

MSRP is…

A suggested price set by manufacturers

The biggest profit ratio for stores usually exists with what type of item?

$1-20

Specialization in human capital usually leads to…?

Greater Productivity

As retail prices go up, profit percentages usually…

Stay about the same

What is the type of economy that most countries in the world have today?

Mixed

What does Karl Marx usually write about?

Communism

What does Adam Smith usually write about?

Capitalism

What type of economy promotes laissez-faire?

Capitalism

Democratic means to distribute wealth more evenly

Socialism

A combination of more than one type of economy

Mixed

Centrally planned government usually led by a dictator

Communism

Centers around freedom, self-interest, and competition

Capitalism

States the need to overthrow all existing governments

Communism

Written about in “The Wealth of Nations”

Capitalism

Started due to inadequacies with the distribution of wealth during the early Industrial Revolution (Choose two)

Socialism, Communism

Much of FDR’s New Deal legislation like: the minimum wage and social security

Socialism

Considered a failed economic system due to lack of incentives

Communism

Has 100% employment and has the government determine what type of job and pay people have

Communism

What is the translation of laissez-faire?

Let them do as they please

In which type of economic system does the consumer typically have the fewest options?

Communism

Adam Smith’s notion of The Invisible Hand guides a nation’s resources to productive uses due to…

Self-interest

Which is true about a government-run industry in a democratic socialist country?

It does not need to make a profit

A difference between laissez-faire capitalism and socialism is that capitalism always has…

Private ownership of industries

Democratic socialist countries frequently have…

All of the above

A key criticism of most government-run businesses is…

Lack of innovation and choices

What country was the first free-market capitalist democracy?

U.S.A.

What country was the first communist country?

Soviet Union

Currently, which country is politically communist, but is also economically capitalistic?

China

Why did the Chinese government implement its one-child policy?

Over-population

What is an unintended consequence of China’s one-child policy from 1980 to 2015?

A great gender imbalance

Ghost cities are a common site in China because…

All of the above

Which group of countries would be considered democratic socialist today?

Canada, France, Germany

Which group of countries would be considered communist today?

North Korea, Cuba, Vietnam