MATH SUMMATIVE TEST 1 Q1

Inflation

The general increase of prices of goods and services over time

Demand-pull inflation

This happens when the demand for goods is higher than the economies ability to produce them.

Cost-push inflation

The prices increase due to the higher production costs such as high prices for raw materials or higher wages for workers

Built-in Inflation

This occurs when businesses increase prices to keep up with the rising wages and costs, creating a cycle where prices and wages continuously push each other up

Percentage

Is a number that shows how many parts out of 100 something represents

Percentage

Is a way of expressing a number as a part or fractuon of 100

Percentage of a number

Is a part of the number given in hundredths

Base

Is the principal amount, the 100% of a number and the number which the percent us taken. The word after “of” is the base

Rate

Is the relationship between the base and the percentage, expressed as a percent and written in decimal form

Selling Price

Is the price a retailer charges a consumer

Cost

Is the amount the retailer paid to acquire or produce the the product

Markup

Also referred as a margin which is the difference between the cost and the selling price

Markup

Is the amount added to cost to determine the selling price

Markdown

Is a reduction from the original selling price of a product

Markdown

Retailers usually apply as part of sales promotion to increase sales or attract more customers

Discount

A deduction from the original cost of an item or service, typically given as an incentive to attract sales or encourage customers

Trade discount

Is a reduction in the catalog or list price of a product

List price

The price shown in the catalog

VAT

Is a type of sales tax charged on the sale of goods, properties, and services

Invoice price

The price that retailers pay is the list proce minus the