Mathematics with Business Applications

Chapter 23:

Practice Test

1.
The median sale price of a home in River Valley 5 years ago was $114,000. This year, the median sale price of a home in River Valley is $127,000. Find the inflation rate.
A)10.2%
B)11.4%
C)16.2%
D)89.7%
2.
A country has a Gross Domestic Product (GDP) of $983,500,000 and a population of 407,000. What is the per capita GDP?
A)$2,416.46
B)$4,070.83
C)$9,835.30
D)$20,325.68
3.
The current cost of a bicycle is $399. The cost in 1983 was $249. What is the CPI for the bicycle?
A)37.59
B)60.24
C)150.00
D)160.24
4.
Out of Bounds wanted to earn $2,920,000 in revenues for the year. The company expected to earn 60 percent of its revenues from sales, 30 percent from services, and 10 percent from return on investments. At the end of the year, a budget analysis was sent to each manager showing the expected amounts and the actual amounts from each area. Sales showed revenues of $1,755,965; service showed $882,000, and return on investments showed $272,500. In what area did the company fail to reach its goals in revenues?
A)sales
B)service
C)return on investments
D)no area
5.
The price of a box of cookies 30 years ago was $0.35. This year, the price of the same box of cookies is $3.00. Find the inflation rate.
A)7.57%
B)11.67%
C)757.14%
D)857.00%
6.
A country has a Gross Domestic Product (GDP) of $1,213,000,000 and a population of 962,000. What is the per capita GDP?
A)$793.08
B)$1,260.91
C)$9,623.42
D)$12,609.10
7.
The current annual salary of a teacher is $34,500. The salary in 1989 was $29,500. What is the CPI for teachers' salaries?
A)14.49
B)16.95
C)114.49
D)116.95
8.
The price of a fast-food hamburger 30 years ago was $0.39. This year, the price of a fast-food hamburger is $0.99. Find the inflation rate.
A)6.1%
B)15.4%
C)60.6%
D)153.8%
9.
A country has an inflation rate of 2.4 percent and a GDP of $985 million. What is the real GDP?
A)$961.36 million
B)981.52 million
C)961.35 billion
D)981.52 billion
10.
The current cost of a ticket to a baseball game is $45.00. The cost in 1983 was $24.50. What is the CPI for the ticket?
A)54.44
B)183.67
C)205.00
D)836.70
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