Economics in Our Times
New Summit School High School Diploma Program
Syllabus
Course Description:
Economics in Our Times is a one semester course. Students completing this
course will earn .5 units upon completion.
Required Materials:
1. Student Text Economics in Our Times, West Publishing Company; ISBN# 0314-02901-X
2. Internet Access for assessments and research
3. Calculator
Class work and Assessments:
•
•
•
•
For each Lesson, the student will have a reading assignment and exercises
to work while reading the text.
After all of the lessons have been completed for a chapter, the student will
take a Chapter Test (Online).
There will be 4 Unit Tests (each is cumulative and covers all chapters in
that unit).
After all chapter tests, and unit tests for the course have been completed,
the student’s grades will be averaged to determine the final grade.
Grading Scale:
94 to 100 %
85 to 93 %
75 to 84 %
70 to 75 %
Below 70 %
A
B
C
D
F
Keys for successfully completing Economics in Our Times:
•
Take your time. Concentrate on understanding one lesson at a time.
Make sure you study the exercises in the lessons and understand them
before you take the Chapter tests.
1
Economics in Our Times
New Summit School High School Diploma Program
Chapter 1 Lesson 1
Reading: pages 4-8 of text
Exercises:
From the reading, please answer the following questions:
1. How do economists think about the world?
2. What is the opportunity cost of you choosing to read this chapter?
3. What is a global economy?
4. What is the difference between microeconomics and macroeconomics?
Please label each situation as being an attribute of Microeconomics or Macroeconomics
by labeling each with “Micro” or “Macro”.
_____________________
unemployment
_____________________
purchasing a car
_____________________
individuals
_____________________
whole economy
_____________________
hardware store
_____________________
car industry
_____________________
consumer choices
2
Economics in Our Times
New Summit School High School Diploma Program
Chapter 1 Lesson 2
Reading: pages 9-16 of text
Exercises:
From the reading, please answer the following questions:
1. What is another word for satisfaction?
2. What is the difference between tangible and intangible costs and give an example
of each?
3. What is scarcity and who does it affect?
4. Why does a person incur opportunity cost every time he makes a choice?
5. Suppose a person spends $10,000.00 on a new car, but if he had not spend the
money on the car he could have done one of the following: buy a $10,000 worth
of clothes or spend the $10,000.00 traveling around the world. Since this person
could have done any of the three things, what is the opportunity of buying the car?
6. So far, you have learned three important economic concepts: scarcity, choice, and
opportunity cost. Because scarcity exists, people must make __________. When
people make __________, they incur opportunity costs.
7. What is economics?
8. Please define Resource and list the 4 categories in which all resources fall.
3
Economics in Our Times
New Summit School High School Diploma Program
Chapter 1 Lesson 2 ( Continued )
Exercise #2
All economic questions and problems arise from scarcity. Economics assumes people do
not have the resources do satisfy all of their wants. Therefore, we must make choices
about how to allocate those resources. We make decisions about how to spend our money
and use our time. This Lesson will focus on the central idea of economics- every choice
involves a cost.
LESSON
All economic questions and problems arise from scarcity. Economics assumes people do not
have the resources do satisfy all of their wants. Therefore, we must make choices about how to
allocate those resources. We make decisions about how to spend our money and use our time.
This Lesson will focus on the central idea of economics- every choice involves a cost.
Let's say you have five dollars. What would you like to spend it on? There are a million things you
would love to spend five bucks on, but let's imagine there are only three things out there you
really want to buy: gum, soda, and movie tickets. Look at the price chart below and answer the
questions.
Good
Price
Gum
$ .50
Soda
$1.00
Movie Ticket
$5.00
•
How many sodas can you buy instead of one movie ticket?
•
How many pieces of gum can you buy instead of one soda?
•
If you buy four pieces of gum, how many sodas could you have bought?
In order to buy a movie, you need to give up a certain amount of gum and soda. If you buy ten
pieces of gum, you give up going to the movie or buying soda. Decisions involve tradeoffs. When
you make a choice, you give up an opportunity to do something else. The highest-valued
alternative you give up is the opportunity cost of your decision. Opportunity cost is the highestvalued forgone activity. It is not all the possible things you have given up.
For example, if you go to the movies you have to give up a certain amount of gum and
soda. If you are a sodaholic, you have to give up five sodas. If you are gum fanatic, you
surrender ten packs of gum. But, the opportunity cost of a movie is not five sodas and ten
packs of gum. It is five sodas or ten packs of gum.
4
Economics in Our Times
New Summit School High School Diploma Program
Chapter 1 Lesson 3
Reading: pages 17-27 of text
Exercises 1:
From the reading, please answer the following questions:
5. What is land
6. What is labor?
7. What is Capital?
8. What is entrepreneurship?
.
Identify the following resources by placing the correct term in the blank provided. You
may use Land, Labor, Capital, or Entrepreneurship.
_________________
John’s work as an typist
_________________
Copper Ore
_________________
A cotton gin
_________________
The computer used to write a school book
_________________
A singer in a musical
_________________
Someone inventing a new product
_________________
Natural gas under a swamp
5
Economics in Our Times
New Summit School High School Diploma Program
Chapter 1 Lesson 3 (continued)
Exercise 2:
1. The way in which an economy decides what goods will be produced, how the
goods will be produced, and for whom the goods will be produced defines the
type of economic system the country uses. Another way to state this is to say that
the way a country answers these three economic questions defines a country’s
economic system. There are two major economic systems. What are they?
2. Define Free Enterprise system and give two other names for the free enterprise
system.
3. Define socialism and give another name for the socialist economy?
4. What is the difference between the enterprise economy and socialism when it
comes to distribution of income?
5. Although all countries in reality have a mixed economy (part free enterprise and
part socialism), the _______________ (country) is closer to having a free
enterprise system and _____________ (country) is closer to having socialism.
CONGRATULATIONS!! You have finished all lessons for Chapter 1. Please review
the material and take Economics Chapter 1 Exam (online).
6
Economics in Our Times
New Summit School High School Diploma Program
Chapter 2 Lesson 1
Reading: pages 32-38 of text
FREE – ENTERPRISE
In the previous chapter you learned that the way a society answers the three
economic questions- What will be produced? How will it be produced?, and for whom
will it be produced? – defines the society’s economic system. In this Lesson we will
learn how:
• The Free Economic System answers these questions
• Profit and Losses play a role in the Free- Enterprise System
Lesson 1:
Answer the following questions:
In a Free – Enterprise economy, for who are the goods produced?
In a Free – Enterprise economy, who does competition benefit?
Define the following terms:
Incentive
Profit
Total Revenue
Total Cost
7
Economics in Our Times
New Summit School High School Diploma Program
Chapter 2 Lesson 2
Reading: pages 39-55 of text
Lesson 2:
Define the following terms:
Ethics
Entrepreneur
Contract
Public Goods and Private Goods
Performance Opportunity:
After reviewing the exercises, please take Economics Chapter 2 Quiz 2
CONGRATULATIONS!! You have finished all lessons for Chapter 2. Please review
the material and take Economics Chapter 2 Exam (online).
8
Economics in Our Times
New Summit School High School Diploma Program
Chapter 3 Lesson 1
Reading: pages 59-74 of text
Lesson 1:
What is a market? A market is any place where people come together to buy and
sell goods and services. A good is a tangible item that gives a person utility or
satisfaction. A service is an intangible item that gives a person utility, such as a history
lecture. So what is demand?
DEMAND:
Demand is the willingness and ability of buyers to purchase a good or service.
• To have demand for a product a person must want (willingness) the product and
have the money (ability)to buy the product.
•
•
LAW of DEMAND:
As the price of a good increases, the quantity demanded of a good decreases and
As the price of a good decreases, the quantity demanded of a good increases.
What is quantity demanded? Quantity demanded is the number of units of goods
that will be purchased at a specific price. For example, let’s say that you will
purchase five sodas when the sodas are $1 each. Therefore, 5 is the quantity
demanded at the specific price of 1 dollar each. If you would purchase 7 sodas
when they are 75 cents each, then 7 is the quantity demanded at a specific price of
75 cents each.
•
•
•
ELASTICITY of DEMAND:
Elasticity of demand is the relationship between the percentage change in quantity
demanded and the percentage change in price.
Elastic demand exists when the quantity demanded changes by a greater
percentage than the percentage change in price, that is when the numerator
changes by more than the denominator
Inelastic demand exists when the quantity demanded changes by a smaller
percentage than the percentage change in price, that is when the numerator
changes by less than the denominator..
9
Economics in Our Times
New Summit School High School Diploma Program
Exercise 1:
Define the following:
Demand Curve
Demand Schedule
Inverse Relationship
Define the following and give and example of each:
Normal Good
Inferior Good
Neutral Good
.
Substitute Goods
Complement Goods
10
Economics in Our Times
New Summit School High School Diploma Program
Chapter 3 Lesson 2
Reading: pages 75-85 of text
Lesson 1:
Supply:
Supply is the willingness and ability of sellers to produce and offer to sell a good
or service.
•
•
LAW of SUPPLY:
As the price of a good increases, the quantity supplied of a good increases and
As the price of a good decreases, the quantity supplied of a good decreases.
What is quantity supplied? Quantity supplied is the number of units of goods
produced and offered at a specific price. For example, let’s say that a seller will
produce and offer five sandwiches when the sandwiches are $2 each. Therefore,
5 is the quantity supplied that price.
•
•
•
ELASTICITY of SUPPLY:
Elasticity of demand is the relationship between the percentage change in quantity
supplied and the percentage change in price.
Elastic Supply exists when the quantity supplied changes by a greater percentage
than the percentage change in price, that is when the numerator changes by more
than the denominator
Inelastic demand exists when the quantity supplied changes by a smaller
percentage than the percentage change in price, that is when the numerator
changes by less than the denominator.
11
Economics in Our Times
New Summit School High School Diploma Program
Exercise 1:
Define the following:
Direct Relationship
Supply Schedule
Supply Curve
Technology
Quota
Answer the Following Questions:
What happens to the supply curve as a result of a fall in the prices of resources?
If a county place a quota on the amount of foreign cars that enter the country, what
happens to the supply curve for automobiles?
Name two occasions in which the supply curve would shift to the right?
CONGRATULATIONS!! You have finished all lessons for Chapter 3. Please review
the material and take Economics Chapter 3 Exam (online).
12
Economics in Our Times
New Summit School High School Diploma Program
Chapter 4
Reading: pages 90-111 of text
Lesson 1:
Directions: Write the word that goes with the statement or definition. Use the word
bank for clues.
Rationing device
Inventory
Equilibrium quantity
Better Business Bureau
Quantity
Word Bank
surplus
shortage
equilibrium
Consumers Union
equilibrium price
Federal Information Center
Consumer Product Safety Commission
1. The price at which a good that is bought and sold in a market that is in equilibrium.
________________________________________________________________________
2. The quantity of a good that is bought and sold in a market that is in equilibrium.
________________________________________________________________________
3. The condition in which quantity demanded is greater than quantity supplied.
________________________________________________________________________
4. A means for deciding who gets what of available goods and resources.
________________________________________________________________________
5. Non-profit organizations that maintain records of customer satisfaction or
dissatisfaction.
________________________________________________________________________
6. The condition in which quantity demanded is greater than quantity supplied.
________________________________________________________________________
13
Economics in Our Times
New Summit School High School Diploma Program
7. A non-profit corporation organized to provide consumers with information on
consumer goods and services.
________________________________________________________________________
8. A government agency whose basic responsibility is to protect consumers against
injuries associated with consumer products.
________________________________________________________________________
9. The condition of being at rest or balanced.
________________________________________________________________________
10. The stock of goods that a business has on hand.
________________________________________________________________________
14
Economics in Our Times
New Summit School High School Diploma Program
Chapter 4 Lesson 2
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____11. A rationing device is necessary because both wants and resources are
unlimited.
__________________________________________________________________
_____12. A rationing device is a means for deciding who gets what of available goods
and resources.
__________________________________________________________________
_____13. Price is the only possible rationing device.
__________________________________________________________________
_____14. The use of price as a rationing device discriminates against people who lack
strength.
__________________________________________________________________
_____15. If need were used as a rationing device, one problem would be deciding what
people actually need.
__________________________________________________________________
15
Economics in Our Times
New Summit School High School Diploma Program
Chapter 4 Lesson 3
Directions: Write the word that best completes each sentence.
16. Long lines usually indicate that a ______________exists in the market.
17. Long lines for tickets to a concert are an indication that the tickets could have been
offered and sold at a ___________ price.
18. After a major earthquake in California, the price of bottled water went up because
____________________________________fro water had risen.
19. Because the supply of candy bars is easily moved from one place to another to meet
local demand, the price for a specific kind of candy bar tends to be _________________.
20. Because the supply of real estate cannot be moved to meet differing demand, the
price of houses tends to be _______________in different locations.
16
Economics in Our Times
New Summit School High School Diploma Program
Chapter 4 Lesson 4
Directions: Read each statement. On the line, write T if the statement is true or F if the
statement is false.
_____21. In determining the price of consumer goods, supply is more important than
demand.
_____22. A surplus exists when the quantity demanded is greater than the quantity
supplied.
_____23. When a market is in equilibrium, the quantity supplied of a good equals the
quantity demanded.
_____24. Equilibrium in a market is graphically represented by the intersection of the
demand curve and the supply curve.
_____25. By definition, an equilibrium quantity cannot change.
_____16. An equilibrium price is a fixed price that has been established by the
government.
_____27. The stock of goods that a business or store has on hand is called a surplus.
_____28. Any means for deciding who gets what of the available limited resources and
goods is a rationing device.
Directions: Read each incomplete sentence and the words or phrases in parentheses. On
the line, write the word or phrase that best completes the sentence.
29. Price is determined by __________. (supply alone, supply and demand together)
30. When a surplus exists, the price of a good will ___________. (rise, fall)
31. When a shortage exists, the price of a good will ____________. (rise, fall)
CONGRATULATIONS!! You have finished all lessons for Chapter 4. Please review
the material and take Economics Chapter 4 Exam (online) and then review
Chapters 1-4 and take Economics Unit 1 Exam (online).
17
Economics in Our Times
New Summit School High School Diploma Program
Chapter 5
Reading: pages 114-145 of the text
Lesson 1
Directions: Read each definition in the right column. In the space provided write the
term that best fits the definition.
__________________1. An organization that uses resources to produce goods and
services, which are sold to consumers, other firms, or the government.
_________________2. The legal responsibility of a sole proprietor of a business or a
partner in a business to pay any money owed by the business. The proprietor’s or
partner’s personal assets may be used to pay these debts.
_______________3. Anything of value to which the firm has legal claim.
_______________4. A business that is owned by two or more co-owners called partners,
who share any profits the business earns and are legally responsible for any debts
incurred by the firm.
_______________5. A share of the profits of a corporation distributed to stockholders.
______________6. Internal rules of the corporation.
______________7. An important decision making body in a corporation. It decides
corporate policies and goals, among other things.
______________8. The sum of fixed costs plus variable costs.
______________9. Cost, or expense, that is the same no matter how many units of a
good are produced.
______________10. The change in total cost that results from producing an additional
unit of output.
18
Economics in Our Times
New Summit School High School Diploma Program
Chapter 5 Lesson 2
Directions: Fill in the blanks to complete the sentence.
1. Three major forms of business organizations are ______________________,
__________________________, and _______________________.
2. A person who buys a ____________ issued by a corporation is a lender to the
corporation; he or she is not an owner of the corporation.
3. A person who buys share of ________________ in a corporation is an owner of the
corporation.
4. Total ___________________ is the price of a good, times the quantity sold.
5. A _______________________ is a contract by which a firm lets a person or a group
of persons use its name and sell its goods or services in exchange for certain payments
being made and certain requirements being met.
19
Economics in Our Times
New Summit School High School Diploma Program
Chapter 5 Lesson 3
Directions: Define each of the following:
1. Fixed cost:
2. Total cost:
3. Corporation
4. Board of Directors:
5. Partnership:
CONGRATULATIONS!! You have finished all lessons for Chapter 5. Please review
the material and take Economics Chapter 5 Exam (online).
20
Economics in Our Times
New Summit School High School Diploma Program
Chapter 6
Reading: pages 146-167 of the text
Chapter 6 Lesson 1:
Directions: Complete the missing word or words in the following sentences.
1. The four market structures are (a)________________, (b)____________
____________, (c) _______________________, and (d)_______________________.
2. In perfect competition, there are many (a) ________________and many
______________________________.
3. In perfect competition, all firms sell _______________________________________.
4. In perfect competition buyers and sellers have all _____________________________
about prices, product quality, sources of supply, and so on.
5. In perfect competition, there is (a)____________________into the market and
(b)_________________out of the market.
6. In a monopoly, there is only one __________________________________________.
7. In a monopoly, the seller sells a product for which there are ____________________.
8. In a monopoly, there are extremely________________________________________.
9. In monopolistic competition, there are many (a) __________________and many
(b)________________________________________.
10. In monopolistic competition, firms produce and sell__________________________
____________________products.
11. In monopolistic competition, there is (a) ___________________________________
into and (b)_____________________________________from the market.
12. In an oligopoly, there are few ___________________________________________.
13. In an oligopoly, firms produce and sell (a)___________________or(b)___________
_____________________________products.
14. In an oligopoly, there are _________________________________ to entry.
21
Economics in Our Times
New Summit School High School Diploma Program
Chapter 6 Lesson 2:
Directions: Write the word or phrase that best completes each sentence.
17. Oligopoly is characterized by ____________________sellers.
18. In an oligopolistic market, there are _______________________________________
barriers to entry.
19. Oligopolists have _______________________________control over price than
monopolists have.
20. One real-world example of an oligopoly is the ______________________________
industry.
21. Oligopolists often use _____________________in an effort to make their products
seem more nearly unique.
CONGRATULATIONS!! You have finished all lessons for Chapter 6. Please review
the material and take Economics Chapter 6 Exam (online).
22
Economics in Our Times
New Summit School High School Diploma Program
Chapter 7
Reading: pages 168-197 of the text
Chapter 7 Lesson 1:
Directions: Read each statement. If it is true, write true on the line below. If it is false,
replace the underlined word or phrase and rewrite the sentence to make it true.
1. The minimum wage rate is determined by the President of the United States.
________________________________________________________________________
________________________________________________________________________
2. The London-Griffin Act gave states the rights to pass right-to-work laws.
________________________________________________________________________
________________________________________________________________________
3. The price of labor is called the minimum wage.
________________________________________________________________________
________________________________________________________________________
4. The employment rate equals the number of persons employed divided by the number
of persons in on institutional civilian population.
________________________________________________________________________
________________________________________________________________________
5. Between 1920-1979 the average wage of union members was 10 to 15 percent lower
than that of comparable nonunion labor.
________________________________________________________________________
________________________________________________________________________
23
Economics in Our Times
New Summit School High School Diploma Program
Chapter 7 Lesson 2:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____16. Global competition is competition from all over the country.
_____17. In today’s highly competitive world, it is increasingly important to acquire an
education.
______18. It is increasingly important for workers to have the skills to stand up to
technology.
_____19. One of the purposes of downsizing is to make a firm less productive.
_____20. When a firm is downsizing, some jobs are usually eliminated.
24
Economics in Our Times
New Summit School High School Diploma Program
Chapter 7 Lesson 3:
Directions: Read each definition is the left column. In the space provided, write the
letter of the term from the right column that best fits the definition. Notice that there are
more terms than definitions.
_____21. the price of labor
a. average age
_____22. the wage at which the quantity demanded
of labor equals the quantity supplied
of labor.
b. closed shop
_____23. a federal law that sets a wage floor
d. unemployment rate
_____24. an organization with the goals of increasing
the wages and improving the working
conditions of its members
e. equilibrium wage rate
_____25. an organization that hires only union members
g. labor union
_____26. a work stoppage called by union members
to put pressure on an employer
h. minimum wage law
_____27. a state law that makes it illegal to require
union membership as a condition of
employment
i. right-to-work-law
j. strike
_____28. competition from all over the world
k. unemployment rate
_____29. restructuring a firm to make it less costly,
more productive, and more efficient
l. union shop
_____30. the percentage of the civilian labor force
that is unemployed
m. wage rate
c. downsizing
f. global competition
25
Economics in Our Times
New Summit School High School Diploma Program
Chapter 7 Lesson 4:
Directions: Read each incomplete sentence. In the space provided, write the letter of the
word or phrase that best completes the sentence.
_____31. The people who supply labor are called________________________.
a. employers
b. employees
c. employment specialists
d. trainees
_____32. The demand curve for labor _____________________, showing that more
people will be hired at lower wage rates than at higher wage rates.
a. is level
b. slopes first up and then down
c. slopes downward
d. slopes upward
_____33. The wage rate rises when there is _______________________________.
a. a shortage of labor
b. a surplus of labor
c. a change in the demand curve
d. no change in the demand curve
_____34. When the demand for a particular good increases, the wages of employees who
produce that good _________________________.
a. are unaffected
b. are temporarily frozen
c. decrease
d. increase
_____35. Minimum wage is determined by _________________________________.
a. the law of supply and demand
b. market forces
c. the U.S. Congress
d. state governors
_____36. In some states, right-to-work laws make _____________illegal.
a. strikes
b. unions
c. closed shops
d. union shops
26
Economics in Our Times
New Summit School High School Diploma Program
_____37. Economists identify _________________as the three major economic forces
currently affecting the workplace.
a. global competition, regulation, and taxation
b. regulation, downsizing, and taxation
c. national competition, downsizing, and regulation
d. global competition, technology, and downsizing
_____38. A person is classified as employed if he or she worked for at least ________
as a paid employee during the past week.
a. one day
b. one hour
c. three days
d. three hours
_____39. People waiting to be called back to jobs from which they have been laid off are
classified as __________________________________.
a. employed
b. unemployed
c. not in the labor force
d. institutionalized
_____40. The unemployment rate can be calculated by dividing the number of persons
unemployed by the number of persons_________________________.
a. in the total population
b. over age 16 in the total population
c. employed
d. in the civilian labor force
CONGRATULATIONS!! You have finished all lessons for Chapter 7. Please review
the material and take Economics Chapter 7 Exam (online).
27
Economics in Our Times
New Summit School High School Diploma Program
Chapter 8
Reading: pages 198-223 of the text
Chapter 8 Lesson 1:
Directions: Choose the correct word from the parentheses to finish the sentence.
11. If the acreage allotment program is successful, it ends up shifting the supply curve to
the (right, left).
________________________________________________________________________
12. The acreage allotment program works by (limiting, increasing) the number of farm
acres that can be used to produce a particular crop.
________________________________________________________________________
13. A price support is the (maximum, minimum) price as determined by the government
that farmers will receive from buyers for their products.
________________________________________________________________________
14. For the most part, when farmers become more productive the price of their product
(rises, falls).
________________________________________________________________________
15. A positive externality is an event or action that causes a (benefit, harm) to be felt by
others.
________________________________________________________________________
16. A Federal Trade Commission rule says you have up to (three days, one year) to
cancel most door-to-door sales.
________________________________________________________________________
28
Economics in Our Times
New Summit School High School Diploma Program
Chapter 8 Lesson 2:
Directions: Write the word or phrase that best completes each sentence.
21. An externality is a side effect of an action that affects the well-being of
________________________________________________.
22. An event or action that causes an adverse side effect is a __________________
______________________________________externality.
23. Some people argue that education generates ________________________________
externalities, since attending school helps make people more active, better informed
voters.
24. Government uses the court system, regulation, and _______________________to
reduce the incidence of negative externalities.
25. The air pollution emitted by many factories is a __________________________.
29
Economics in Our Times
New Summit School High School Diploma Program
Chapter 8 Lesson 3:
Directions: On the line before the sentence, write T if the statement is true or F if the
statement is false.
_____26. During the past century, U.S. farmers have become much more productive.
_____27. Increased productivity results in higher prices for agricultural products.
_____28. All agricultural products have price supports.
_____29. An acreage allotment program limits the number of farm acres that can be used
to produce a particular crop.
_____30. Under a marketing quota system, government sets a limit on land usage.
CONGRATULATIONS!! You have finished all lessons for Chapter 8. Please review
the material and take Economics Chapter 8 Exam (online).
30
Economics in Our Times
New Summit School High School Diploma Program
Chapter 9
Reading: pages 224-251 of the text
Chapter 9 Lesson 1:
Directions: Write the word or phrase that best completes each sentence.
1. Pollution is a _______________________of the production and use of many goods
and services.
2. Economists realize that there are benefits and _______________to reducing pollution.
3. Resources that are not owned are ______________to be polluted than resources that
are owned.
4. _________________________is the use of market forces to clean up the environment.
5. Government attempts to reduce pollution by setting standards and by issuing
__________________________, which businesses can buy and sell.
Directions: Write the word or phrase that best completes each sentence.
6. The _________________________is a measurement that identifies the income below
which people are considered to be living in poverty.
7. Food stamps are a form of _______________________benefits.
8. People who have developed skills that are in high demand usually earn a
____________________income.
9. The _________________________________income tax is a proposed program to
reduce the disincentive effects of the current welfare system.
31
Economics in Our Times
New Summit School High School Diploma Program
Chapter 9 Lesson 2:
Directions: Read each statement. If it is true, write true. If it is false, write false.
_____16. In absolute terms, more African Americans are poorer than any other group.
_____17. The government defines poverty in relative terms.
_____18. Employer-provided health insurance, Medicare, and Medicaid are all out-ofpocket payment systems.
_____19. An in-kind benefit takes the form of money.
_____20. To save money it is usually worthwhile to purchase brand name prescription
drugs.
_____21. Health care is a neutral good whose demand rises as people’s income rises.
_____22. A government standard is a less costly way for a firm to eliminate pollution.
_____23. Today approximately 60 percent of the population has employer provided
health insurance.
_____24. With regard to negative income tax, the poverty level is the level below which
a person’s income is not allowed to fall.
_____25. The three types of programs mentioned in discussions of how poverty might be
reduced or eliminated are the current welfare system, the negative income tax, and the
free-enterprise-oriented program.
CONGRATULATIONS!! You have finished all lessons for Chapter 9. Please review
the material and take Economics Chapter 9 Exam (online) and also review Chapters
5-9 and take Economics Unit 2 exam (online).
32
Economics in Our Times
New Summit School High School Diploma Program
Chapter 10
Reading: pages 254-275 of the text
Chapter 10 Lesson 1:
1. Historically, what goods like gold, silver, copper, rocks cattle and shells have evolved
into.
________________________________________________________________________
2. The stated denomination on paper or money or coins.
________________________________________________________________________
3. “Bad money drives good money out of circulation.”
________________________________________________________________________
4. It’s what gives money its value.
________________________________________________________________________
5. When you pay this way you are in fact taking out a loan.
________________________________________________________________________
6. The sum of the funds you have in your account each day of the month divided by the
number of days in the month.
________________________________________________________________________
33
Economics in Our Times
New Summit School High School Diploma Program
Chapter 10 Lesson 2:
Directions: Use your book to help you complete each of the following sentences. Write
the missing word or words on the writing line provided.
1. An economy in which trades are made in goods and services instead of money is a
____________________________________________________________________
2. When a good becomes widely accepted for purposes of exchange, it is considered
_____________________________________________________________________
3. _______________________________is the term used to apply to the stated
denomination on paper money or coins.
4. A ________________________________________- is anything that is generally
acceptable in exchange for goods and services.
5. A ______________________________ is a common measurement in which values
are expressed.
6. A good functions as a ______________________________ by maintaining its value
over time.
7. ____________________________________________________ is a banking
arrangement in which banks hold only a fraction of their deposits and lend out the
remainder.
8. Coins issued by the U.S. Treasury and paper money issued by the federal Reserve
System are __________________________________________.
9. A deposit that is withdrawable on demand and transferable by means of a check is a
_______________________________________________.
There is no online exam for this chapter.
34
Economics in Our Times
New Summit School High School Diploma Program
Chapter 11
Reading: pages 276-299 of the text
Chapter 11 Lesson 1:
Directions: Write the phrase that best completes each sentence.
1. A bank’s total reserves can be calculated by adding the bank’s deposit in the reserve
account at the Fed and its ___________________________________.
2. Required reserves are the amount of bank reserves a bank must hold against its
demand deposits as mandated by ________________________________________.
3. A bank’s required reserves can be calculated by multiplying its reserve requirement
times ___________________________________________________________.
4. Banks can make loans with their _________________________________________.
5. Individual banks can increase the money supply by __________________________.
35
Economics in Our Times
New Summit School High School Diploma Program
Chapter 11 Lesson 2:
Directions: Read each definition in the left column. In the space provided, write the
letter of the term from the right column that best fits the definition. Notice that there are
more terms than definitions.
_____21. the central bank of the United States
a. discount rate
_____22. the major policy-making group
within the Federal Reserve System
b. excess reserves
_____23. the sum of a bank’s reserve account
and its vault cash
_____24. the minimum amount of reserves a
funds rate
bank must hold against its deposit,
as mandated by the Fed
c. the Fed
d. federal
e. Federal Open
Market Committee
_____25. any reserves held beyond the
required amount
f. monetary policy
_____26. the deliberate control of the
g. open-market
operations
_____27. buying and selling of government
securities by the Fed
h. required reserves
_____28. the interest rate the Fed charges
a bank for a loan
i. reserve requirement
j. total reserves
36
Economics in Our Times
New Summit School High School Diploma Program
Chapter 11 Lesson 3:
Directions: Read each incomplete sentence. In the space provided, write the letter of the
word or phrase that best completes the sentence.
_______29. The activities of the Federal Reserve are controlled and coordinated by
_____________________________.
a. the Fed’s board of governors
b. the U.S. Senate
c. the Fed’s district bank presidents
d. individual district banks in rotation
_____30. The United States is divided into _________Federal Reserve districts.
a. 5
b. 9
c. 12
d. 25
_____31. The Federal Reserve System provides __________________services.
a. check-cashing
b. check-clearing
c. check-printing
d. check-endorsing
_____32. As part of its supervising function, the Fed can examine the books of member
commercial banks____________________________.
a. after a two-hour warning
b. after a two-day warning
c. after a two-week warning
d. without warning
CONGRATULATIONS!! You have finished all lessons for Chapter 11. Please
review the material and take Economics Chapter 11 Exam (online).
37
Economics in Our Times
New Summit School High School Diploma Program
Chapter 12
Reading: pages 300-329 of the text
Chapter 12 Lesson 1:
Directions: Write the phrase that best completes each sentence.
1. Gross domestic product (GDP) is the total market value of all ___________________
produced annually in an economy.
2. To avoid ____________________________, intermediate goods and services are not
included in GDP.
3. Illegal goods and services _____________________________________________as
part of GDP.
4. Because stock transactions do not represent ________________________________,
they are not included in GDP.
5. Social security checks are an example of ___________________________, which are
not included in GDP.
38
Economics in Our Times
New Summit School High School Diploma Program
Chapter 12 Lesson 2:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. Economists break the economy into three sectors: the business sector, the
government sector, and the foreign sector.
____________________________________________________________
_____2. Expenditures made by the business sector are called consumption.
_____________________________________________________________
_____3. GDP can be calculated by adding the expenditures made by all the sectors of the
economy and then subtracting exports.
_______________________________________________________________
_____4. An individual’s feeling of “well-being” involves more than living in a country
with a high GDP.
______________________________________________________________
_____5. The MEW (Measures of Economic Welfare) is widely accepted.
________________________________________________________________
39
Economics in Our Times
New Summit School High School Diploma Program
Chapter 12 Lesson 3:
Directions: Write the word or phrase that best completes each sentence.
1. An increase in ________________________________________________can make
GDP rise, even if there is no increase in the quantity of good produced.
2. _______________________________________________is GDP that has been
adjusted for price changes.
3. Another name for real GDP is GDP in ______________________________________
prices.
4. The business cycle is the pattern of recurrent ______________________________ in
real GDP.
5. One of the objectives of economists is to __________________________ the business
cycle.
CONGRATULATIONS!! You have finished all lessons for Chapter 12. Please
review the material and take Economics Chapter 12 Exam (online).
40
Economics in Our Times
New Summit School High School Diploma Program
Chapter 13
Reading: pages 330-351 of the text
Chapter 13 Lesson 1:
Directions: Write the word or phrase that best completes each sentence.
1. A decrease in the average level of prices is __________________________________.
2. The inflation rate between two years is the ______________________________in the
price level.
3. ______________________________________is the average number of times a dollar
is spent to buy final goods and services in a year.
4. According to the exchange equation, money supply times velocity must equal quantity
of output times ___________________________________.
5. Inflation _____________________________________________people with money
saved in savings accounts.
41
Economics in Our Times
New Summit School High School Diploma Program
Chapter 13 Lesson 2:
Directions: Write the term that fits each definition.
1. ______________________________________: the status of workers who have lost
their jobs because of changing market conditions and who have transferable skills.
2. _____________________________________: the status of workers who have lost
their jobs because of changing market conditions and whose skills do not match the
requirements of available jobs.
3. ___________________________________: unemployment that is caused by
frictional and structural factors in the economy.
4. _________________________________: the situation that exists when the official
unemployment rate is equal to the natural unemployment rate.
5. _________________________________: the difference between the official
unemployment rate and the natural rate of unemployment.
CONGRATULATIONS!! You have finished all lessons for Chapter 13. Please
review the material and take Economics Chapter 13 Exam (online).
42
Economics in Our Times
New Summit School High School Diploma Program
Chapter 14
Reading: pages 352-371 of the text
Chapter 14 Lesson 1:
Directions: Write the word or phrase that best completes each sentence.
1. Fiscal policy refers to changes government makes in __________________________
(or both) to achieve particular economic goals.
2. The objective of _______________________________________fiscal policy is
directly to increase total spending in the economy and indirectly to reduce the
unemployment rate.
3. When __________________________________________occurs, increases in
government spending lead to reductions in private spending.
4. Inflation is the result of too much ___________________________in the economy
relative to the quantity of goods and services available for purchase.
5. ______________________________________________are areas specified to receive
tax and regulatory relief, with the goal of alleviating the problem of unemployment.
43
Economics in Our Times
New Summit School High School Diploma Program
Chapter 14 Lesson 2:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement if false, rewrite it to
make a true statement.
_____1. Monetary policy is implemented by the Federal Reserve.
_________________________________________________________________
_____2. The objective of expansionary monetary policy is to contract total spending in
the economy and reduce inflation.
_____________________________________________________________________
_____3. The issue of crowding out is essential in relation to monetary policy.
_____________________________________________________________________
_____4. When the Fed increases the money supply, total spending in the economy is
reduced.
______________________________________________________________________
_____5. When the Fed decreases the money supply, there is less money to spend, and
firms begin to sell less.
_____________________________________________________________________
44
Economics in Our Times
New Summit School High School Diploma Program
Chapter 14 Lesson 3:
Directions: Write the date, word, or phrase that best completes each sentence.
1. As economy experiences stagflation when inflation and _______________occur at the
same time.
2. Nations first experienced stagflation during the ______________________________.
3. Nations that have experienced stagflation include the United States, Canada, the
United Kingdom, and _____________________________________________.
4. When the money supply rises, the output of good and services rises _______________
______________________________prices rise.
5. Some economists believe stagflation is caused by _____________________________
_________________________monetary policy.
CONGRATULATIONS!! You have finished all lessons for Chapter 14. Please
review the material and take Economics Chapter 14 Exam (online).
45
Economics in Our Times
New Summit School High School Diploma Program
Chapter 15
Reading: pages 372-395 of the text
Chapter 15 Lesson 1:
Directions: Write a phrase to answer each question.
1. Which kind of tax raises the largest percentage of federal tax revenue?
_______________________________________________________________________
2. What kind of tax is imposed on tobacco products and gasoline?
________________________________________________________________________
3. What do we call the sum total of what the federal government owes its creditors?
_______________________________________________________________________
4. Who is responsible for approving a final budget for the federal government each year?
________________________________________________________________________
5. Under which kind of income taxation does everyone pay taxes at the same rate,
whatever the income level?
46
Economics in Our Times
New Summit School High School Diploma Program
Chapter 15 Lesson 2:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. Until the time of the Great Depression, most Americans considered deficits in
the government budget unacceptable, except during wartime.
_______________________________________________________________________
_____2. The federal budget has been in deficit every year, beginning in 1970.
_______________________________________________________________________
_____3. Unlike an individual, the federal government can run a budget deficit without
borrowing money.
________________________________________________________________________
_____4. The only way the federal government can balance its budget is by raising taxes.
________________________________________________________________________
_____5. All economists favor a balanced budget amendment.
________________________________________________________________________
CONGRATULATIONS!! You have finished all lessons for Chapter 15. Please
review the material and take Economics Chapter 15 Exam (online) and also review
Chapters 10-15 and take Economics Unit 3 exam (online).
47
Economics in Our Times
New Summit School High School Diploma Program
Chapter 16
Reading: pages 396-417 of the text
Chapter 16 Lesson 1:
Directions: Write the phrase that best completes each sentence.
1. ______________________________________________is an increase from one
period to the next in real GDP.
2. The production possibilities frontier shows all the possible combinations of
______________________________________that an economy can produce in a certain
period of time, under the conditions of a given state of technology, no unemployed
resources, and efficient production.
3. All other things being equal, nations rich in natural resources are _______________
_______________________________to experience economic growth.
4. Technological advances make it possible to obtain _______________________
______________________from the same amount of resources.
5. The term ________________________________________refers to the laws, rules,
and regulations that define rights in the use and transfer of resources.
48
Economics in Our Times
New Summit School High School Diploma Program
Chapter 16 Lesson 2:
Directions: Write the term that fits each definition.
1. ___________________________________: a country with a low per-capita GDP.
2. ___________________________________: a country’s birthrate minus its death rate.
3. ___________________________________: the number of children under a certain
age plus the number of elderly, divided by the total population.
4. __________________________________: the idea that countries are poor because
they do not save and buy capital goods, but they cannot save and buy capital goods
because they are poor.
5. _________________________________: the existing state of affairs.
CONGRATULATIONS!! You have finished all lessons for Chapter 16. Please
review the material and take Economics Chapter 16 Exam (online).
49
Economics in Our Times
New Summit School High School Diploma Program
Chapter 17
Reading: pages 418-441 of the text
Chapter 17 Lesson 1:
Directions: Write a word or phrase to answer each question.
1. What do we call the dollar value of products brought into a country from other
countries?
___________________________________________________________________
2. How can one calculate a nation’s balance of trade?
____________________________________________________________________
3. What does a nation have when its imports are greater than its exports?
____________________________________________________________________
4. What kind of advantage does a country have when it can produce more of a good than
another country using the same quantity of resources?
______________________________________________________________________
5. What kind of good should a country specialize in producing?
_______________________________________________________________________
50
Economics in Our Times
New Summit School High School Diploma Program
Chapter 17 Lesson 2:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. A quota is a tax on imports.
________________________________________________________________________
_____2. In effect, both quotas and tariffs lower the price of the imported good to the
American consumer.
________________________________________________________________________
_____3. The practice of selling goods in foreign countries at prices above their costs and
above the prices charged in the domestic market is known as dumping.
________________________________________________________________________
_____4. One of the hallmarks of a global economy is economic integration, which
occurs when nations combine to form either a common market or a free-trade area.
________________________________________________________________________
_____5. The World Bank, the biggest development bank in the world, lends money to
poor and less-developed nations.
________________________________________________________________________
CONGRATULATIONS!! You have finished all lessons for Chapter 17. Please
review the material and take Economics Chapter 17 Exam (online).
51
Economics in Our Times
New Summit School High School Diploma Program
Chapter 18
Reading: pages 442-469 of the text
Chapter 18 Lesson 1:
Directions: Write a word or phrase to answer each question.
1. What are the two dominant economic systems in the world?
_______________________________________________________________________
2. What is the name for economies that incorporate features of both the dominant
economic systems?
________________________________________________________________________
3. According to the capitalist thinker, what is one of the jobs price performs?
________________________________________________________________________
4. Which kind of thinker is more likely to want to have prices controlled by the
government?
________________________________________________________________________
5. What does the socialist thinker see as the goal of government decision makers?
________________________________________________________________________
52
Economics in Our Times
New Summit School High School Diploma Program
Chapter 18 Lesson 2:
Directions: Write the word or phrase that best completes each sentence.
1. Command-economy socialism is an economic system characterized by ____________
________________________ ownership of the nonlabor factors of production,
government allocation of resources, and centralized decision making.
2. In the former Soviet Union, Gosplan was the ______________________________
_____________________________agency.
3. The critics of central economic planning say that economic planners cannot coordinate
economic activity or satisfy consumer demand as well as _________________________
can.
4. A _________________________________________________is a government
mandated maximum price above which legal trades cannot be made.
5. As long as price is centrally imposed, shortages or surpluses are _________________
_________________________________.
53
Economics in Our Times
New Summit School High School Diploma Program
Chapter 18 Lesson 3:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. Prices that had been set at levels below the equilibrium price can be expected to
drop as the economy moves from socialism to free enterprise.
________________________________________________________________________
_____2. During the transition from socialism to free enterprise, it should be expected
that all firms will remain in business and all workers will keep their jobs.
________________________________________________________________________
_____3. The superstructure is the basic structure and facilities on which the continuance
and growth of a community depend.
________________________________________________________________________
_____4. In a free enterprise system, telephones are more important and more often used
than they are under command-economy socialism.
________________________________________________________________________
_____5. After living for years under socialism, most people are eager to take risks.
________________________________________________________________________
CONGRATULATIONS!! You have finished all lessons for Chapter 18. Please
review the material and take Economics Chapter 18 Exam (online).
54
Economics in Our Times
New Summit School High School Diploma Program
Chapter 19
Reading: pages 472-501 of the text
Chapter 19 Lesson 1:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. Durability refers to how long an item of clothing will last in good condition.
______________________________________________________________________
_____2. A person shopping for clothes should consider only the price of an item of
clothing.
______________________________________________________________________
_____3. Clothing purchases involve tradeoffs.
______________________________________________________________________
_____4. At an upscale department store, a clothes shopper can expect relatively high
prices and very little service.
_______________________________________________________________________
_____5. Economists would never advise people to shop for clothes as long as it takes to
find exactly what they want at the lowest possible price.
______________________________________________________________________
55
Economics in Our Times
New Summit School High School Diploma Program
Chapter 19 Lesson 2:
Directions: Write the word or phrase that best completes each sentence.
1. Food shoppers can expect to find the most varied selection at a
______________________________________________________.
2. Food shoppers can expect to find the highest prices at a
_____________________________________________________________.
3. Food shoppers should try to avoid ___________________________________
_______________________________, buying goods that they had not intended to buy.
4. A food shopper can calculate the ____________________________________ of an
item by dividing the price of the item by its weight.
5. In general, __________________________________________-brands are the least
expensive food brands.
56
Economics in Our Times
New Summit School High School Diploma Program
Chapter 19 Lesson 3:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. The direct sales of products by telephone is called phone marketing.
________________________________________________________________________
_____2. It is wise to assume that every telephone salesperson is completely honest.
________________________________________________________________________
_____3. Victims of telephone fraud usually get their money back.
________________________________________________________________________
_____4. Insisting on immediate action is a sign that a telephone salesperson may be a
swindler.
_______________________________________________________________________
_____5. It is wise to give your credit card number over the phone to a person calling
from a company you do not know about.
______________________________________________________________________
57
Economics in Our Times
New Summit School High School Diploma Program
Chapter 19 Lesson 4:
Directions: Write the term that fits each definition.
1. _______________________________: a contract that specifies the terms under
which property is rented.
2. ______________________________:
owner.
renting from a renter rather than from the
3. ______________________________: cash paid at the time of purchase, with the rest
of the purchase price to be paid later.
4. ______________________________: a written agreement by which a buyer of
property agrees to repay a loan taken out to purchase the property.
5. _____________________________: a one-percent fee charged by the lender, to be
paid by a person borrowing to buy a house.
58
Economics in Our Times
New Summit School High School Diploma Program
Chapter 19 Lesson 5:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. It is good to think about the kind of car you want to buy before you go shopping
for a car.
________________________________________________________________________
_____2. If you want to trade in a used car, you can usually get a copy of the Kelly Blue
Book Market Report from the car dealership.
________________________________________________________________________
_____3. If you are shopping for a car, it is important to drive the car before buying it.
_______________________________________________________________________
_____4. A new car comes with a warranty, an agreement about the terms of the loan for
purchasing the car.
________________________________________________________________________
_____5. A new car loses about 10 percent of its value in the first year.
________________________________________________________________________
CONGRATULATIONS!! You have finished all lessons for Chapter 19. Please
review the material and take Economics Chapter 19 Exam (online).
59
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20
Reading: pages 502-539 of the text
Chapter 20 Lesson 1:
Directions: Write the word or phrase that best completes each sentence.
1. A budget is an organized plan for spending and _____________________________
money.
2. The first step in the budget-making process is determining your income and
expenditures for __________________________________.
3. When you save money, you are “buying” _______________________________ in
the present and the ability to purchase something in the future.
4. The ________________________________________ step in the budget-making
process is writing out a monthly budget.
5. A budget is not a cure-all; it is imply an organized way of looking at your
expenditures and your ___________________________________________ and at what
you are doing about them.
60
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20 Lesson 2:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. One “trick” that can help you establish the habit of saving is pretending that you
are about to get a raise.
________________________________________________________________________
_____2. If you have more than $100,000 to deposit, you should establish accounts in two
different branches of the same bank.
________________________________________________________________________
_____3. The assets of a bank are all the things that the bank owns and that have value.
________________________________________________________________________
_____4. A bank’s net worth may also be called its liabilities.
________________________________________________________________________
_____5. A bank that has no equity is independent.
_______________________________________________________________________
61
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20 Lesson 3:
Directions: Write a phrase to answer each question.
1. What do laypeople usually think of buying when they talk about investing?
________________________________________________________________________
2. “Don’t sell your stock now—the price has gone down.” Is this good advice or bad
advice for an investor in the stock market?
________________________________________________________________________
3. Which kind of mutual fund invests in short-term government or U.S. Treasury
securities?
________________________________________________________________________
4. In what kind of publication does a fund company outline its investment philosophy
and its results in recent years?
_______________________________________________________________________
5. What kind of service should an investor expect from a mutual fund company?
_______________________________________________________________________
62
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20 Lesson 4:
Directions: Write the word or phrase that best completes each sentence.
1. In general, the more education a person has, the ______________________________
his or her income is likely to be.
2. When filling out a job application form, it is best to write very neatly with
________________________ or, if possible, to type.
3. A ____________________________________ is a written statement of a job
applicant’s previous employment, education, and so on.
4. A job applicant with an appointment for an interview at 10:30 should arrange to arrive
for that interview at ______________________________.
5. After a job interview, the applicant should send the interviewer a _________________
__________________________________________.
63
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20 Lesson 5:
Directions: Write the term that fits each definition.
1. __________________________________: hospital-expense insurance, surgicalexpense insurance, and physician-expense insurance
2. __________________________________: the amount of a medical bill that an
insured person must pay before becoming eligible for benefits
3. __________________________________: a percentage of the remaining medical bill
that an insured person must pay
4. __________________________________: basic health insurance plus major medical
insurance
5. __________________________________: a health care plan that offers its members
comprehensive medical care for a monthly or yearly fee.
64
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20 Lesson 6:
Directions: Write the word or phrase that best completes each sentence.
1. A beneficiary is a person who is named to receive benefits from an insurance policy.
2. The price of term life insurance varies according to the amount of coverage and
according to the age and health of the person being insured.
3. The premiums for whole life insurance remain the same as long as the policy is in
effect.
4. A person with universal life insurance may borrow against the cash value, although
the borrowing will reduce his or her death benefit.
5. A person with variable life insurance can decide how the cash value of his or her
policy is invested.
65
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20 Lesson 7:
Directions: Write the word or phrase that best completes each sentence.
1. Homeowner’s insurance should cover damage to the house, personal property,
personal liability, and ___________________________________________.
2. Homeowners should consider _________________________________ when
estimating the replacement cost of their house.
3. Most insurance companies _____________________________________ the
insurance premiums for homeowners who install safeguards such as smoke detectors and
dead bolt on the doors.
4. A person buying homeowner’s insurance should remember that choosing a
______________________________________________ deductible will result in paying
lower premiums.
5. The personal property of an apartment renter ____________________________
covered by the landlord’s insurance.
66
Economics in Our Times
New Summit School High School Diploma Program
Chapter 20 Lesson 8:
Directions: Read each statement. On the line before the sentence, write T if the
statement is true or F if the statement is false. Then, if the statement is false, rewrite it to
make a true statement.
_____1. Bodily injury liability insurance pays for losses due to death or injury in a car
accident no matter who is at fault.
______________________________________________________________________
_____2. Property damage liability insurance covers damage done to another person’s
car, buildings, fences, and so on.
______________________________________________________________________
_____3. Health insurance usually pays funeral benefits, whereas medical payments
insurance usually does not.
______________________________________________________________________
_____4. In most states, drivers between the ages of 25 and 35 pay higher automobile
insurance premiums than drivers under the age of 25.
________________________________________________________________________
_____5. If you have a car accident, you should first check to see if anyone is injured and
then call the police.
________________________________________________________________________
CONGRATULATIONS!! You have finished all lessons for Chapter 20. Please
review the material and take Economics Chapter 20 Exam (online). Review
Chapters 16-20 and take Economics Unit 4 exam (online). Review all units and take
the Economics Final Exam (online).
Copyright © 2006 by New Learning Resources, Inc.
Designed for New Summit School.
67
Economics in Our Times
New Summit School High School Diploma Program
68