Guided Reading Activities

1 ECONOMICS: PRINCIPLES ANDPRACTICESG uided Reading ActivitiesTO THE TEACHERThe Guided Reading Activitiesprovide students with a foundation for study. They providethe groundwork that helps students identify and comprehend important information in thetextbook chapters. The worksheets guide students to the key ideas and concepts they need toknow to meet chapter Guided Reading page is provided for every section of Economics: Principles andPractices. In a variety of presentations, students are asked to list, outline, analyze, apply, andevaluate the information they have read.

2 The Guided Reading Activities help students organ-ize their learning and prepare them for the section quizzes and the chapter to the Guided Reading Activitiescan be found at the back of the by The McGraw-Hill Companies, Inc. All rights reserved. Permission is granted to reproducethe material contained herein on the condition that such material be reproduced only for classroom use; beprovided to students, teachers, and families without charge; and be used solely in conjunction withEconomics: Principles and other reproduction, for use or sale, is prohibited without writtenpermission from the all inquiries to:Glencoe/McGraw-Hill8787 Orion PlaceColumbus, OH 43240 ISBN 0-07-830100-9 Printed in the United States of 3 4 5 6 7 8 9 10 047 08 07 06 05 04 03 CONTENTS1 What Is Economics?

3 Section 1 ..1 Section 2 ..2 Section 3 ..32 Economic Systems and Decision MakingSection 1 ..4 Section 2 ..5 Section 3 ..63 Business OrganizationsSection 1 ..7 Section 2 ..8 Section 3 ..94 DemandSection 1 ..10 Section 2 ..11 Section 3 ..125 SupplySection 1 ..13 Section 2 ..14 Section 3 ..156 Prices and Decision MakingSection 1 ..16 Section 2 ..17 Section 3 ..187 Market StructuresSection 1 ..19 Section 2 ..20 Section 3 ..218 Employment, Labor, and WagesSection 1 ..22 Section 2 ..23 Section 3 ..24 Section 4 ..259 Sources of Government RevenueSection 1.

4 26 Section 2 ..27 Section 3 ..28 Section 4 ..2910 Government SpendingSection 1 ..30 Section 2 ..31 Section 3 ..32 Section 4 ..3311 Money and BankingSection 1 ..34 Section 2 ..35 Section 3 ..3612 Financial MarketsSection 1 ..37 Section 2 ..38 Section 3 ..3913 Economic PerformanceSection 1 ..40 Section 2 ..41 Section 3 ..42 Section 4 ..4314 Economic InstabilitySection 1 ..44 Section 2 ..45 Section 3 ..46 Section 4 ..4715 The Fed and Monetary PolicySection 1 ..48 Section 2 ..49 Section 3 ..5016 Achieving Economic StabilitySection 1.

5 51 Section 2 ..52 Section 3 ..53 Section 4 ..5417 International TradeSection 1 ..55 Section 2 ..56 Section 3 ..5718 Comparative Economic SystemsSection 1 ..58 Section 2 ..59 Section 3 ..60 Section 4 ..6119 Developing CountriesSection 1 ..62 Section 2 ..63 Section 3 ..6420 Global Economic ChallengesSection 1 ..65 Section 2 ..66 Section 3 ..67 Answer Key.. 68 Copyright by The McGraw-Hill Companies, Reading Activities1 Name Date Class For use with textbook pages 5 10 SCARCITY AND THE SCIENCE OF ECONOMICSRECALLING THE FACTSD irections:Use the information in your textbook to answer the questions.

6 Use another sheet of paper is the basic economic problem facing all societies? is need different from want? do the letters TINSTAAFL stand for, and what does the term mean to consumers? are the three basic questions societies have to answer about the way their resources are used? the factors of production and define each is production? are the four key elements of the study of economics? Explain briefly why each one is Reading ActivitiesCopyright by The McGraw-Hill Companies, Date Class 1-22 Guided Reading ActivitiesFor use with textbook pages 12 17B ASIC ECONOMIC CONCEPTSOUTLININGD irections: Locate the following headings in your textbook.

7 Then use the information under the headingsto help you write each answer. Use another sheet of paper if , Services, and What is scarcity in an economic sense? What is the difference between a consumer good and a capital good? What kind of economic product is a service? What is a consumer? , Utility, and To what does value refer? of Value What is the paradox of value? What is required for something to have value? What is wealth? Circular Flow of Economic What is a key feature of circular flow? Markets What is a factor market? Markets Where do individuals spend their income from the resources they sell?

8 And Economic What is productivity? of Labor and Specialization How do division of labor and specialization affect productivity? . in Human Capital In what ways can government, businesses, and individuals invest in human capital? Reading ActivitiesCopyright by The McGraw-Hill Companies, Reading Activities3 Name Date Class 1-3 For use with textbook pages 19 25 ECONOMIC CHOICES AND DECISION MAKINGFILLING IN THE BLANKSD irections:Use your textbook to fill in the blanks using the words in the box. Some words may be usedmore than once. Use another sheet of paper if analysismaximum combinationsfree enterprise economystandard of livingdecision-making gridproduction possibilities frontieropportunity costfully employedTrade-Offs and Opportunity CostWhenever people make economic decisions, they face 1, or alternative choices.

9 Using a2allows consumers to consider various alternatives and decide which one comes closestto meeting their needs. 3is more than the price tag on a good or service. It is the costof the next best alternative use of money, time, or PossibilitiesTo illustrate the concept of 4, economists use a diagram representing variouscombinations of goods and/or services an economy can produce when all productive resources are5. By showing the various alternatives, the 6allowsproducers to decide how to allocate limited resources. The diagram indicates the 7ofgoods and/or services that can be produced.

10 If, however, for various reasons some resources are not8, the producer cannot reach its full production potential and the9of that failure is whatever is not produced. Economic growth occurs when moreresources or increased productivity causes the 10to move Like an EconomistEconomists use various methods to help people make the best choices among the many wants that compete for theuse of scarce resources. One is 11, a way of thinking about a problem that comparesthe costs of an action to the benefits received. This allows a business, for example, to choose investment projects thatgive the highest return per dollar Road AheadThe study of economics can provide a more detailed understanding of a 12, where con-sumers and privately owned businesses, rather than government, make the majority of economic decisions.