Student Activity Workbook Teacher Annotated Edition

256 Pages·2011·7.19 MB·English

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Student Activity Workbook
Teacher Annotated Edition
Bothell, WA • Chicago, IL • Columbus, OH • New York, NY
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TABLE OF CONTENTS
UNIT 1 Economics and Personal Finance CHAPTER 5 Money Management Strategy
Note Taking . . . . . . . . . . . . . . . . . . . . . . . . .55
CHAPTER 1 The Fundamentals of Economics Vocabulary Activity . . . . . . . . . . . . . . . . . .58
Note Taking . . . . . . . . . . . . . . . . . . . . . . . . . .1 Key Concepts . . . . . . . . . . . . . . . . . . . . . . .60
Vocabulary Activity . . . . . . . . . . . . . . . . . . .3 Chapter Activities . . . . . . . . . . . . . . . . . . . .61
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . .5 Mathematics Activity . . . . . . . . . . . . . . . . .64
Chapter Activities . . . . . . . . . . . . . . . . . . . . .6 Finance Activities . . . . . . . . . . . . . . . . . . . .65
Mathematics Activity . . . . . . . . . . . . . . . . . .9 Test-Taking Activity . . . . . . . . . . . . . . . . . .67
Finance Activities . . . . . . . . . . . . . . . . . . . .10
Test-Taking Activity . . . . . . . . . . . . . . . . . .12 CHAPTER 6 Consumer Purchasing and
Protection
CHAPTER 2 Economics and the Global Note Taking . . . . . . . . . . . . . . . . . . . . . . . . .68
Economy Vocabulary Activity . . . . . . . . . . . . . . . . . .70
Note Taking . . . . . . . . . . . . . . . . . . . . . . . . .13 Key Concepts . . . . . . . . . . . . . . . . . . . . . . .72
Vocabulary Activity . . . . . . . . . . . . . . . . . .15 Chapter Activities . . . . . . . . . . . . . . . . . . . .73
Key Concepts . . . . . . . . . . . . . . . . . . . . . . .17 Mathematics Activity . . . . . . . . . . . . . . . . .76
Chapter Activities . . . . . . . . . . . . . . . . . . . .18 Finance Activities . . . . . . . . . . . . . . . . . . . .77
Mathematics Activity . . . . . . . . . . . . . . . . .21 Spreadsheet Application . . . . . . . . . . . . . . .79
Finance Activities . . . . . . . . . . . . . . . . . . . .22 Test-Taking Activity . . . . . . . . . . . . . . . . . . 81

Test-Taking Activity . . . . . . . . . . . . . . . . . .24
UNIT 3 Banking and Credit
UNIT 2 Planning Personal Finances
CHAPTER 7 Banking
CHAPTER 3 Personal Financial Planning Note Taking . . . . . . . . . . . . . . . . . . . . . . . . .82
Note Taking . . . . . . . . . . . . . . . . . . . . . . . . .25 Vocabulary Activity . . . . . . . . . . . . . . . . . .84
ed. Vocabulary Activity . . . . . . . . . . . . . . . . . .27 Key Concepts . . . . . . . . . . . . . . . . . . . . . . .86
eserv Key Concepts . . . . . . . . . . . . . . . . . . . . . . .29 Chapter Activities . . . . . . . . . . . . . . . . . . . .87
hts r Chapter Activities . . . . . . . . . . . . . . . . . . . .30 Mathematics Activity . . . . . . . . . . . . . . . . .90
g
All ri Mathematics Activity . . . . . . . . . . . . . . . . .34 Finance Activities . . . . . . . . . . . . . . . . . . . .91
nc.
es, I Finance Activities . . . . . . . . . . . . . . . . . . . .35 Test-Taking Activity . . . . . . . . . . . . . . . . . .94
ni
a Spreadsheet Application . . . . . . . . . . . . . . .37
p
m
Co Test-Taking Activity . . . . . . . . . . . . . . . . . .39 CHAPTER 8 Consumer Credit
Hill
w- Note Taking . . . . . . . . . . . . . . . . . . . . . . . . .95
a
McGr CHAPTER 4 Finances and Career Planning Vocabulary Activity . . . . . . . . . . . . . . . . . .99
© by The NVooctaeb Tualkairnyg A . c. t.i v. i.t .y . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..4402 KCehya pCtoenr cAecpttivsi t.i .e s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..110021
pyright Key Concepts . . . . . . . . . . . . . . . . . . . . . . .44 Mathematics Activity . . . . . . . . . . . . . . . .105
Co Chapter Activities . . . . . . . . . . . . . . . . . . . .45 Finance Activities . . . . . . . . . . . . . . . . . . .106
Mathematics Activity . . . . . . . . . . . . . . . . .48 Test-Taking Activity . . . . . . . . . . . . . . . . .109
Finance Activities . . . . . . . . . . . . . . . . . . . .49
Spreadsheet Application . . . . . . . . . . . . . . .52
Test-Taking Activity . . . . . . . . . . . . . . . . . .54
Personal Finance iii
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CHAPTER 9 The Finances of Housing Mathematics Activity . . . . . . . . . . . . . . . .181
Note Taking . . . . . . . . . . . . . . . . . . . . . . . .110 Finance Activities . . . . . . . . . . . . . . . . . . .182
Vocabulary Activity . . . . . . . . . . . . . . . . .113 Spreadsheet Application . . . . . . . . . . . . . .184
Key Concepts . . . . . . . . . . . . . . . . . . . . . .115 Test-Taking Activity . . . . . . . . . . . . . . . . .188
Chapter Activities . . . . . . . . . . . . . . . . . . .116
Mathematics Activity . . . . . . . . . . . . . . . .119 UNIT 5 Protecting Your Finances
Finance Activities . . . . . . . . . . . . . . . . . . .120
Spreadsheet Application . . . . . . . . . . . . . .123 CHAPTER 14 Planning Your Tax Strategy
Test-Taking Activity . . . . . . . . . . . . . . . . .125 Note Taking . . . . . . . . . . . . . . . . . . . . . . . .189
Vocabulary Activity . . . . . . . . . . . . . . . . .192
UNIT 4 Investing Financial Resources Key Concepts . . . . . . . . . . . . . . . . . . . . . .194
Chapter Activities . . . . . . . . . . . . . . . . . . .195
CHAPTER 10 Saving and Investing Mathematics Activity . . . . . . . . . . . . . . . .198
Note Taking . . . . . . . . . . . . . . . . . . . . . . . .126 Finance Activities . . . . . . . . . . . . . . . . . . .199
Vocabulary Activity . . . . . . . . . . . . . . . . .129 Spreadsheet Application . . . . . . . . . . . . . .202
Key Concepts . . . . . . . . . . . . . . . . . . . . . .131 Test-Taking Activity . . . . . . . . . . . . . . . . .206
Chapter Activities . . . . . . . . . . . . . . . . . . .132
Mathematics Activity . . . . . . . . . . . . . . . .134 CHAPTER 15 Home and Vehicle Insurance
Finance Activities . . . . . . . . . . . . . . . . . . .135 Note Taking . . . . . . . . . . . . . . . . . . . . . . . .207
Spreadsheet Application . . . . . . . . . . . . . .137 Vocabulary Activity . . . . . . . . . . . . . . . . .210
Test-Taking Activity . . . . . . . . . . . . . . . . .139 Key Concepts . . . . . . . . . . . . . . . . . . . . . .212
Chapter Activities . . . . . . . . . . . . . . . . . . .213
CHAPTER 11 Stocks Mathematics Activity . . . . . . . . . . . . . . . .216
Note Taking . . . . . . . . . . . . . . . . . . . . . . . .140 Finance Activities . . . . . . . . . . . . . . . . . . .217
Vocabulary Activity . . . . . . . . . . . . . . . . .143 Spreadsheet Application . . . . . . . . . . . . . .219
Key Concepts . . . . . . . . . . . . . . . . . . . . . .145 Test-Taking Activity . . . . . . . . . . . . . . . . .221
Chapter Activities . . . . . . . . . . . . . . . . . . .146
Mathematics Activity . . . . . . . . . . . . . . . .149 CHAPTER 16 Health, Disability, and Life
Finance Activities . . . . . . . . . . . . . . . . . . .150 Insurance
Spreadsheet Application . . . . . . . . . . . . . .153 Note Taking . . . . . . . . . . . . . . . . . . . . . . . .222 ed.
Test-Taking Activity . . . . . . . . . . . . . . . . .155 Vocabulary Activity . . . . . . . . . . . . . . . . .226 eserv
Key Concepts . . . . . . . . . . . . . . . . . . . . . .228 ghts r
CHAPTER 12 Bonds and Mutual Funds Chapter Activities . . . . . . . . . . . . . . . . . . .229 All ri
nc.
Note Taking . . . . . . . . . . . . . . . . . . . . . . . .156 Mathematics Activity . . . . . . . . . . . . . . . .232 es, I
ni
Vocabulary Activity . . . . . . . . . . . . . . . . .160 Finance Activities . . . . . . . . . . . . . . . . . . .233 pa
m
Key Concepts . . . . . . . . . . . . . . . . . . . . . .162 Spreadsheet Application . . . . . . . . . . . . . .235 Co
Hill
Chapter Activities . . . . . . . . . . . . . . . . . . .163 Test-Taking Activity . . . . . . . . . . . . . . . . .238 w-
a
Mathematics Activity . . . . . . . . . . . . . . . .166 McGr
Finance Activities . . . . . . . . . . . . . . . . . . .167 CHAPTER 17 Retirement and Estate Planning he
Spreadsheet Application . . . . . . . . . . . . . .170 Note Taking . . . . . . . . . . . . . . . . . . . . . . . .239 © by T
Test-Taking Activity . . . . . . . . . . . . . . . . .172 Vocabulary Activity . . . . . . . . . . . . . . . . .242 pyright
Key Concepts . . . . . . . . . . . . . . . . . . . . . .244 Co
CHAPTER 13 Real Estate and Investments Chapter Activities . . . . . . . . . . . . . . . . . . .245
Note Taking . . . . . . . . . . . . . . . . . . . . . . . .173 Mathematics Activity . . . . . . . . . . . . . . . .248
Vocabulary Activity . . . . . . . . . . . . . . . . .175 Finance Activities . . . . . . . . . . . . . . . . . . .249
Key Concepts . . . . . . . . . . . . . . . . . . . . . .177 Test-Taking Activity . . . . . . . . . . . . . . . . .251
Chapter Activities . . . . . . . . . . . . . . . . . . .178
iv Personal Finance
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Name _________________________________________ Date _______________ Class ____________
Chapter 1 The Fundamentals of Economics
Section 1 What Is Economics?
C
h
Note Taking a
p
t
e
Directions As you read, write notes, facts, and main ideas in the Note r

Taking column. Write key words and short phrases in the Cues column. 1
Then summarize the section in the Summary box.
Cues Note Taking
• wants and needs SCARCITY AND ECONOMICS
• limited resources • Economics is the study of the decisions that go
• taxes into making, distributing, and using goods and
services.
• Consider the opportunity cost for each action.
• Scarcity is not the same as shortage.
• Factors of production include land, labor, capital, and
entrepreneurship.
• Government decisions affect you as an investor, a
worker, and a consumer.
• resource allocation TYPES OF ECONOMIC SYSTEMS
• bartering • There are three basic questions that determine
• basic needs the type of economy a country has.
• variety • A traditional economy is guided by customs and
• mixed economies t raditions.
• A command economy is controlled by a dictator or
central planning committee.
d. • The marketplace makes decisions in a market
e
erv e conomy.
es
hts r
g
All ri • law of supply SUPPLY AND DEMAND
nies, Inc. •• esuqrupilliubsr iuamnd p sohionrttage • Pderimceasn dan idn aw amgaersk eatr ee cdoenteormmyin.ed by supply and
a
mp • brand loyalty • Supply is influenced by price of inputs, number of
o
Hill C suppliers, taxes, and technology.
w- • Elastic demand means the demand is affected by price.
a
Gr
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h
by T
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ht Summary
g
opyri Economics looks at how goods and services are made, distributed, and u s e d . Every
C
decision has an opportunity cost or trade-off. Everything we make requires the factors of
production: land, labor, capital, and entrepreneurship. The three basic economic systems are
traditional, command, and market. Most countries have a mixed economy. Supply and demand
drive prices and wages in a market economy like the United States. There are four factors that
affect supply.
Personal Finance Chapter 1 1
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Chapter 1 The Fundamentals of Economics
Section 2 The U.S. Economic System
1

r
e Note Taking
t
p
a
h Directions As you read, write notes, facts, and main ideas in the Note
C Taking column. Write key words and short phrases in the Cues column.
Then summarize the section in the Summary box.
Cues Note Taking
• financial market THE FINANCIAL SYSTEM
• investors and lenders • The financial market responds to changes in the
• trading economy and in government policies.
• global economy
• The NY Stock Exchange and NASDAQ bring buyers and
• savers and borrowers
sellers together in the United States.
• brokers
• Other financial markets involve money markets,
de rivatives, insurance markets, and foreign exchange
markets.
• Technology and telecommunications have made the
world one large financial market.
• Financial institutions include depository and non-
depository institutions.
• Non-depository institutions include insurance
c ompanies, investment bankers, mutual funds, and
stock brokerage firms.
• positive v. negative INCENTIVES
• scams • Incentives encourage specific behaviors. d.
e
• tax deductions • Incentives can be positive or negative. erv
•• tinatxe rcersetd ritastes • Banuds insaevsisnegss oafnfedr rreewcoagrdn iptiroong aranmd sw taog ceosn tsou wmoerrkse.rs, ghts res
• Governments offer various tax incentives to producers, All ri
• Ncietigzaentivse, sianvceernst,i vaensd o ifntveens itnocrlsu.de fines. nies, Inc.
a
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Summary ht
g
A financial market provides the means for purchasing and selling stocks, bonds, opyri
C
c ommodities, and other financial instruments.Technology and telecommunications have
made it easier to trade on a global scale. Financial institutions allow people to save, borrow, and
invest their money. While a reward is often attached to incentives, there are also negative
incentives. Businesses and governments use incentives to encourage certain behaviors and
actions.
2 Chapter 1 Personal Finance
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Name _________________________________________ Date _______________ Class ____________
Chapter 1 The Fundamentals of Economics
Chapter Vocabulary Activity
C
h
a
Directions Write a description of a visual representation that will help
p
you remember the vocabulary terms. The first one is completed for you. t
e
Answers will vary; sample answers provided. r

1
Vocabulary
• a bank with an ATM machine • a sale sign on a rack of clothing
• a busy stock exchange floor • a scientific lab full of machines and
equipment
• a dictator standing over a group of
people, handing out money • a smiling person standing in front of a
store with a grand opening sign
• a person holding money, looking at a
media player and a book sitting in a • an agent offering an insurance policy to
retail store window a person
• a person offering some apples to a • an apple tree next to a pond and a herd
second person while accepting a chicken of cattle
• a person standing between two store • an Inuit person fishing with homemade
owners, each offering goods for sale fishing pole
• a person using a sewing machine and • two people shaking hands, with a dollar
cloth to make an article of clothing sign over their hands
• a person working on an assembly line
1. opportunity cost a person holding money, looking at a media player and a book
sitting in a retail store window
d. 2. factors of production a person using a sewing machine and cloth to make an article
e
erv of clothing
es
ghts r 3. land an apple tree next to a pond and a herd of cattle
nc. All ri 4. labor a person working on an assembly line
nies, I 5. capital a scientific lab full of machines and equipment
a
p
Com 6. entrepreneurship a smiling person standing in front of a store with a grand opening sign
w-Hill 7. bartering a person offering some apples to a second person while accepting a chicken
a
Gr
Mc 8. traditional economy an Inuit person fishing with homemade fishing pole
e
h
by T 9. command economy a dictator standing over a group of people, handing out money
©
ght 10. market economy a person standing between two store owners, each offering goods for sale
Copyri 11. equilibrium point two people shaking hands, with a dollar sign over their hands
a busy stock exchange floor
12. financial market
a bank with an ATM machine
13. depository institutions
an agent offering an insurance policy to a person
14. non-depository institutions
a sale sign on a rack of clothing
15. incentive
Personal Finance Chapter 1 3
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Name _________________________________________ Date _______________ Class ____________
Chapter 1 The Fundamentals of Economics
Chapter Vocabulary Activity (continued)
1

r
e
Directions Match each word to its definition by writing the letter that
t
p
corresponds to the word before the sentence that defines it.
a
h
C
Vocabulary
a. economics h. demand elasticity
b. scarcity i. elastic demand
c. economy j. inelastic demand
d. supply k. allocates
e. demand l. discretion
f. price ceiling m. fungible
g. price floor n. derivatives
l 1. judgment
j 2. when price has little influence on demand for a product
h 3. the degree to which demand is affected by price
m 4. can be easily substituted for a good of equal value
a 5. the study of the decisions that go into making, distributing, and using goods
and services
k 6. distributes
c 7. how a nation makes decisions to allocate its resources
d.
e
n 8. securities that involve managing financial risk eserv
d 9. how much producers are willing and able to produce at a certain price ghts r
All ri
g 10. a minimum price set by the government that can be charged for goods nc.
and services es, I
ni
a
p
f 11. a maximum price set by the government that can be charged for goods om
C
and services Hill
w-
a
b 12. the economic principle that requires people to decide which goods and McGr
e
services to use or not use due to limited resources and unlimited wants h
by T
i 13. when demand for a product is affected by price ht ©
g
e 14. how much consumers are willing and able to buy at a certain price pyri
o
C
4 Chapter 1 Personal Finance
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Name _________________________________________ Date _______________ Class ____________
Chapter 1 The Fundamentals of Economics
Chapter Key Concepts
C
h
a
Directions: On a separate sheet of paper, answer the following items.
p
t
1. Explain the difference between scarcity and shortage. e
r
2. List the factors of production and offer an example of each for producing a book. 1
3. Explain the correlation between the factors of production and wealth.
4. Why do you suppose a country cannot have a purely market economy? What might
happen if it was?
5. What are two advantages to a traditional economy?
6. Explain the law of supply.
7. What happens when demand exceeds supply?
8. How do commercial banks generate income?
9. Sarina works in a law office. Her boss has asked her to work extra hours over the
weekend to help prepare some documents for a big client. What positive incentive
might he use to get Sarina to work? What is a negative incentive he might use?
10. How does the government use tax benefits as incentives for savers and investors?
1. Scarcity is an economic principle that always exists; shortage is a temporary situation causing a
lack of resources.
2. The factors include land, labor, capital, and entrepreneurship. Samples might include: trees used
for paper (land), the printer and the bookbinder (labor), printers and tools used to make paper
(capital), and the author or the owner of the publishing house (entrepreneurship).
3. The more of each factor a person or nation owns, the wealthier he is.
4. A country must perform certain tasks for survival and the government must be involved to
ensure the safety of its citizens. If a country had a purely market economy, some goods neces-
ed. sary for survival might become too expensive for consumers to buy and other goods would be
eserv too dangerous.
hts r 5. (1) each person’s role is set and well-defined, (2) a traditional economy is stable and predictable
g
All ri 6. When the price of an item goes down, demand increases. When the price goes up, demand
nc. decreases.
es, I 7. When demand exceeds supply, it causes a shortage and the price of the item goes up.
ni
pa 8. Banks borrow money that is deposited at one interest rate and lend it to other customers at a
m
Co higher rate.
Hill 9. Students may say that he could offer Sarina a bonus on her paycheck as a positive incentive or
w-
Gra he might threaten to fire her as a negative incentive.
Mc 10. The government offers tax-deferred retirement accounts to encourage employees to save and
e
by Th invest their money.
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ht
g
pyri
o
C
Personal Finance Chapter 1 5
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Name _________________________________________ Date _______________ Class ____________
Chapter 1 The Fundamentals of Economics
Chapter Activity 1: Understanding Supply and Demand
1

r
e
t
p SKILLS ACHIEVED
a
h Reading, Reasoning, Problem solving, Organizing and maintain information
C
Objective: Evaluate the effect of various market events on supply and
demand.
As you learned in this chapter, there are several factors that can influence the supply
curve and demand curve. Remind students that a change in a good’s own price does not
shift either curve, but rather a shift in the curve would cause the price to change. A
change in the price of inputs, or the resources required to produce the goods, will cause
the supply curve to shift. Review the section of this chapter that illustrates the supply
and demand curves and the influences on each. Then complete the following table.
Would the
Would the curve
demand curve
Market Event shift to the right
or supply curve
or left?
shift?
wheat A drought destroys much of the
supply left
crop.
redwood Environmentalists urge consumers
demand left
lumber to boycott redwood products.
lotion A new study shows that the lotion
demand right
dramatically reduces wrinkles.
d.
e
butter The price of margarine goes up. supply left eserv
hts r
paper The price of wood pulp rises. supply left All rig
hula A celebrity confides in an interview nc.
es, I
hoops that “he gets a big kick out of his demand right ani
p
m
hula hoop.” o
C
Hill
yachts The average price of stocks falls w-
a
Gr
by over 20% between now and demand left Mc
e
the end of the year. by Th
©
gasoline Large sports-utility vehicles ht
become more popular. demand right pyrig
o
C
tofu E. Coli bacteria is found in another
demand right
meat plant.
gasoline Two oil supertankers collide. supply left
6 Chapter 1 Personal Finance
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