. 30
( 33)


1,249,211,000 JAPAN
AFGHANISTAN 126,361,000



INDIA 61,098,000



(excluding effects
of migration)
3% and above ZEALAND
2 - 2.9%
1 - 1.9%
0 - .9%
Population loss
Each square represents
one million people.
1998 data

9 10 11 12 13 14 15 16

Planning Your Career
Whether you plan to attend college after high job responsibilities, but it does not provide infor-
school or begin working immediately, now is a mation on education or training requirements.
good time to start thinking about what you want • The Guide for Occupational Exploration focuses on
to do when you finish your high school education. career interests and indicates the kinds of jobs
that match different interests. It also offers
Thinking About What You Want From guidelines on how to prepare for a career and
a Career Choosing a career depends on many find a job in a particular field.
factors, including your interests and skills, your Other good sources of information are schools
level of education and training, and the opportuni- and libraries, which often have career resource
ties available. To help you think about what kind centers, and the Internet, which has many useful
of career you would like to pursue, use this check- Web sites. Many schools also have computerized
guidance programs that you can use to find out
list to identify skills, weaknesses, and interests.
about different careers.
Self-Assessment Checklist
Finding a Job Once you have identified the
• What are my interests?
kind of job you would like, you need to find out
• What are my strengths? what opportunities are available in your commu-
• What are my goals? nity. You can find out about jobs by
• • talking to people you know, including your
Do I like working with people, or do I prefer
working alone? guidance counselor.
• checking the classified ads in your local
• Do I like working in an office, or do I prefer
working outdoors?
• contacting an employment agency.
Researching Job Opportunities Once • using the Internet.
you identify your strengths, weaknesses, and inter-
ests, you will want to try to identify what kinds of
jobs could make use of those interests and skills.
Several sources can help you learn about different
types of jobs. These government publications are Identify three fields that interest you. Use
particularly helpful: resources available to you to learn as much as
you can about jobs in these fields. In particular,
• The Occupational Outlook Handbook provides
find out what educational requirements are
detailed information on hundreds of occupations. necessary, what the projected future demand
Included are job duties, working conditions, for these jobs is, and what kind of salaries
levels and places of employment, education these jobs offer. Prepare a one-page report
and training requirements, job trends, and of your findings.
average earnings.
• The Dictionary of Occupational Titles lists 20,000
different jobs and is a good source for finding
out about jobs you never knew about. The
Dictionary provides detailed explanations of

Financing Your College Education
College costs have risen steadily in recent years. Scholarships and Grants Scholarships
If you need financial aid, regardless of the reason, provide another source of financial aid and do
start researching for aid in your junior year or not have to be repaid. In most cases, income
early in your senior year of high school. Check plays no part in eligibility. Some available scholar-
with your guidance counselor about federal aid ships are national, state, and college merit scholarships,
and state, military, ethnic, and fraternal grants. awarded on the basis of academic excellence, and
Reserve Officers™ Training Corps scholarships, awarded
Financial Aid Financial aid comes in three to students willing to spend four years in the
basic forms: loans, which must be repaid; scholar- armed forces after graduation. Grants also are
ships and grants, which need not be repaid; and available, but they generally are based on need.
jobs. Most financial-aid sponsors distribute their For those who qualify, Pell Grants can be used at
money through colleges. Therefore, contact the any accredited college, vocational school, nursing
financial aid office of the college(s) of your choice. school, and the like.
Because most colleges send out financial aid appli-
Work and Study
cations only upon request, you should obtain The third basic kind of
these forms early and then file them with your financial aid is in the form of a job. One is the
application for admission. Missing the appointed College Work-Study Program sponsored by the fed-
deadline will reduce your chances for aid. eral government. To be eligible, you must be a
full-time student who would not be able to
Loans afford school without the job.
There are four major types of student loans.
If you are seeking financial aid for college, keep
The National Direct Student Loan is granted
the following in mind:
only to needy students. The funds come from
the federal government, but individual colleges • Start your investigation early.
choose the students who receive them. The
• Apply for every scholarship or grant for which you
loan is interest-free while you are in school. may qualify.
After graduating, you have 10 years to repay
• You can borrow from more than one program.
the loan at low interest.
The Government Guaranteed Student Loan is
made by financial institutions, and is guaran-
teed by the federal government to be repaid.
While you are in school, the government pays
1. If you need financial aid for college, when
the interest, which is generally 9 percent. After
should you begin your search?
you graduate, you have 10 years to repay
2. What are three forms of financial aid?
the loan. 3. What kinds of scholarships are available?
A bank loan requires you or your parents to
begin repayment while you are still in college.
Although interest rates vary on this type of
loan, they generally are higher than the rates
on government loans.
A special student loan is one offered by colleges,
civic and professional groups, and other organ-
izations. The interest rates vary on these loans.

Preparing a Resume
One of the most critical parts of finding a job Writing a Cover Letter When you send a
is preparing a resume. A good resume provides a resume, it should be accompanied by a cover letter.
brief history of your accomplishments along with A cover letter identifies and explains anything you
a description of your strengths and abilities. A are sending to someone. It may be as short as two
prospective employer™s decision to interview you sentences or as long as several paragraphs. Follow
often depends on his or her reaction to your resume. these guidelines when you write your cover letter:
• State briefly what is enclosed, but include enough
Before You Begin Before writing your resume, information to make the reader want to look at
conduct an inventory of your strengths and weak- the attached resume.
nesses by asking yourself questions such as:
• Mention why you are sending the resume.
• What kinds of skills and talents do I have? • Indicate any response you are expecting or any
• What is my work history? future action you will be taking, such as a fol-
• How much formal education have I had? low-up phone call.
• All cover letters should be typed on good qual-
• What are my goals?
ity paper.
• What kind of work do I want?
• Address the person by name (instead of using
• What salary would I be willing to accept?
“To Whom It May Concern”).
• Sign each letter individually.
Writing Your Resume When you have
answered these questions, organize the entries on
your resume.
• Begin with your name, address, and telephone
Directions: View the Renssalaer Polytechnic
• Indicate the position or kind of position you Institute™s Preparing a Resume Web page. Print
are seeking. a hard copy or read the article, and answer the
• List all your relevant work experience, beginning following questions:
1. What is the purpose of a resume?
with your most recent job. Include the dates of
2. What are the steps in preparing a resume?
your employment, the names of the companies
3. What type of information is included in a
for which you have worked, and the positions resume?
you have held. 4. A cover letter should accompany the
• List the schools you have attended. Include any resume. Describe important items to include
in this letter.
special honors or awards you have received and
any activities in which you have been or are
• Provide at least three references, all of whom
know you well enough to vouch for your abili-
ties or strengths. Do not use relatives as refer-
ences, and do not use more than two teachers.
Keep in mind that you may adjust the format of your
resume to highlight the most relevant information.

Preparing a Budget
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Net Income

To increase your wealth, financial planners rec- List your monthly expenditures, such as rent
ommend that you control your expenditures and utility bills. Then list miscellaneous expendi-
to live within your means. You can accomplish tures, such as clothing or gifts. Because you do
this by making a budget”a plan that matches not know how many unexpected expenditures
expenditures with income. Budgeting can help you will have, allow 5 to 10 percent of your net
you manage your money better and prevent you income for this category. Keep in mind that it
from buying goods and services that you do not is more efficient and sometimes easier to spread
really need or cannot afford. larger expenditures across time.

Organizing Your Information Keeping Track
The first Monitor your budget to make
step in setting up a budget is to obtain a spread- sure that the amounts you have allotted for each
sheet”a large sheet of paper with columns for weeks expenditure are reasonable. If you find that a cate-
and months, and rows for different categories of gory does not reflect your actual spending, adjust
expenditures. You can buy spreadsheets in an office it. One benefit of a budget is that it can show
supply store, make one of your own using pencil you where you need to increase or decrease
and paper, or use a computer software program your spending.
designed for this purpose.
Next, decide whether you want to set up your
budget on a weekly, monthly, or yearly basis. If
you get paid every two weeks, you might want to
set up an annual budget with 26 biweekly columns. 1. Why is making a budget important?
If you get paid monthly, you might prefer to set 2. What are the steps involved in making a
up an annual budget with 12 monthly columns. budget?
The first row of your budget should consist of 3. What does it mean to monitor a budget?
the income you expect to have for each period.
Be sure to record your net income”the income
received after taxes have been taken out. The
remainder of the rows should be used to list
your expenditures.

Maintaining a Checking Account
Properly maintaining a checking account takes what the balance of your account is at the time
time and effort. Checking accounts generally are the statement was issued. It is your responsibility
not free unless you are able to deposit”and not to reconcile your account”make sure your balance
use”a minimum sum of money, which generally agrees with the bank™s balance. To reconcile your
varies from $500 to $1,000. If you do not maintain account, follow these steps:
the required minimum, you may have to pay a 1. In your checkbook, mark each check entry listed
monthly fee, which can vary from one bank to on your bank statement with a checkmark to
another. show that the check has been processed. As
you do this, make sure the amount of each
check recorded in your checkbook matches
the amount on the statement.
2. List the checks you wrote but that have not
been processed. Total the amounts of these
checks, then add the total to the balance you
have written in your checkbook.
3. Subtract any fees or charges indicated on the
bank statement, such as a monthly service
charge or a charge for new checks.
4. Subtract any cash withdrawals you made from
automatic teller machines (ATMs).
5. Compare this balance with the balance on
your bank statement. If no mistakes were
Comparing Terms Contact several banks made, your balance should match the bank™s.
to compare the terms of their checking accounts. If the two balances do not match, look for
After you™ve selected a bank, it will provide you mistakes. If you cannot clear up the error
with checks printed with your full name, current immediately, call the bank. The error may
address, and telephone number. When you write carry over to the next month and make balanc-
checks, make all figures and amounts legible. ing your checkbook even more difficult. If the
Write the amount in the box on the extreme right balance gets too far out of line, a check may
and on the line on the left, using all the space “bounce” (be returned for insufficient funds),
available so that no one can change the amount. which will cost you a penalty of $10, $20,
Be sure to date the checks correctly and sign them or more. If a number of checks bounce, you
clearly and accurately. Immediately record in your might get a bad credit rating.
checkbook the date the check was written, to
whom it was written, and the amount for which
it was written.

Balancing Your Checkbook You should 1. Why is having a checking account conven-
balance your checkbook every month after receiv- ient for many consumers?
ing a statement from the bank. The statement will 2. How do you balance a checkbook?
tell you which checks the bank has received and 3. What does it mean when a check bounces?
which deposits it has recorded. It will also tell you

Filing an Income Tax Return
If you work, you probably have to file income
tax forms with the federal government and, in
some cases, with the state and/or city in which
you live or work. The first step in filing income
tax forms is to fill out a withholding statement
for your employer. The federal withholding form,
known as a W-4, asks for such information as
your name and address, social security number,
marital status, and any special allowances for dis-
abilities or dependents. This form is shown below.
The purpose of the W-4 is to help your employer
determine how much money to withhold from
each of your paychecks for income taxes. If you
do not complete the form properly, your employer
may not withhold enough money, and you will
have to pay additional taxes at the end of the year.

Keeping Track Keep your pay stubs and the
receipts for your expenditures together in a safe
place. By law, every January your employer must
provide you with a W-2 form, which summarizes
your earnings for the year. You should check the
information on your pay stubs against the infor-
mation on the W-2. Some expenditures are tax
deductible and will save you money by lowering professional tax preparer. The fee for this service
your taxes. You must be able to prove, however, varies according to the complexity of your tax
that you actually made the expenditures. Your return and the amount of time it takes to prepare
proof is the receipts that you have saved. it. You generally must file the completed forms
by midnight, April 15.
Deductions Depending on the current tax
laws, deductible expenses may include mortgage
interest, medical bills and pharmaceutical expenses,
child-care expenses, charitable contributions, such
work-related expenses as union dues or uniforms, 1. What is a W-4 form? What is its purpose?
and uninsured losses from theft or natural disasters. 2. In preparing to file an income tax return,
why are receipts important?
Tax Forms 3. What are some examples of tax deductible
At the beginning of each year, the
Internal Revenue Service sends out tax forms with
detailed instructions on how to complete them.
You can find the same forms at most post offices,
public libraries, or banks. You may complete the
forms yourself or have them completed by a

Borrowing Money
When you borrow money, you assume some • Credit card loans are loans made through the
risks. Being in debt can be dangerous and can even use of a bank credit card. The payment plans
lead to personal bankruptcy. Before you decide to for this type of loan vary widely. In some cases,
borrow money, keep the following factors in mind: the consumer pays an annual fee for the use
1. Do not borrow so much that if you become ill of the card. In other cases, the consumer may
or lose your job, you no longer will be finan- have to pay the balance in full at the end of the
cially stable. month or make monthly installment payments.
2. Stagger your debts. Spread out your payments
Costs of the Loan
so they are not all due at the same time. Regardless of the type
of loan you obtain, you are entitled by law to
If you have a legitimate need to borrow money,
receive information about the cost of credit. First,
you might consider asking a family member or a
you are entitled to know the finance charge”the
friend for a loan. Life insurance companies, savings
total dollar amount the credit will cost, including
institutions, credit unions, commercial banks, retail
interest charged plus any carrying or service charge.
organizations, and finance companies also lend
Second, you are entitled to know the annual per-
money. The many types of loans that are available
centage rate (APR)”the interest cost of the loan on
to consumers include the following:
a yearly basis. Because repayment schedules differ,
• Installment sales credit, the most common the APR is your guide to the true cost of the loan.
type of loan available, is generally taken out to To obtain a loan, you must be a good credit
buy merchandise such as a major appliance. The risk. The lender checks on your character, your
consumer makes an initial deposit on the goods ability to repay the loan, and your capital assets.
and agrees to pay the balance, plus interest and To determine your creditability, lenders often
service charges, in equal installments over a check with a credit bureau”an agency that collects
period of time. credit information on consumers. If your credit
• Installment cash credit is a direct cash loan rating”a record of debt and payment history”is
not good or is in doubt, you probably will be
often used for vacations, home improvements,
denied credit. Thus, to maintain a good credit
or other personal expenses. No down payment
rating, you should pay debts on time.
is required, but the loan, plus interest and other
charges, must be repaid in equal installments
over a specified period of time.
• Single lump-sum credit is a direct cash loan
requiring that the amount borrowed plus inter-
1. What do you think are some wrong reasons
est be repaid on a specified day.
for borrowing?
• Open-ended or revolving credit allows con- 2. What kinds of loans are available for
sumers to purchase goods and services from consumers?
3. What is a credit rating? Why is it important
merchants on credit, often without a down pay-
to maintain a good one?
ment. In some cases, the consumer may repay
the entire balance within 30 days without any
interest charges. Monthly payments are required
thereafter, with interest being computed on the
outstanding balance.

Buying Insurance
Almost everyone needs some kind of insurance. • Property liability protects renters and home-
Your parents, for example, may have several types owners against claims of negligence filed by
of insurance: homeowners or renters insurance in others when an accident occurs on the renter™s
case of theft, fire, or natural disaster; automobile or homeowner™s property.
insurance in case of accident or disability; and Deciding exactly what insurance to buy can be
health insurance to cover their expenses if they confusing. Different insurance companies often
are hospitalized. offer the same type of insurance under separate
How much and what kind of insurance you names, which makes it difficult to know if the
need depends on your lifestyle, your job, your insurance companies are talking about the same
age, and many other factors. Most people need kind of policy. In addition, the product”coverage”
enough insurance to protect their belongings and is invisible. The consumer cannot always tell how
potential income, but not so much that paying much the policy will pay until something happens
for it strains their budget. for which he or she wants to collect payment on
a claim.
Types of Insurance When you are buying insurance, keep the fol-
There are six major
lowing factors in mind:
types of insurance that you should consider:
1. “Group” policies”offered to a group of people,
• Whole life insurance, sometimes called ordinary
generally through an employer or organiza-
life insurance, pays money to your survivors in
tion”tend to be less expensive than individual
the event of your death. It also carries a provi-
policies purchased from an insurance agent.
sion for savings against which you can borrow.
2. Always consult more than one agent before
You may collect the savings in one lump sum
buying a policy. Describe your needs carefully
when you retire.
to each agent, and ask each to recommend a
• Term insurance offers one type of coverage policy and provide a written list of benefits
only”payment to your survivors in the event and estimates of costs”usually in the form of
of your death. a monthly premium. Inform each agent that
• Health insurance covers medical and hospital you are consulting other agents and intend to
compare costs and benefits before making any
bills if you become ill. Some health insurance
decision. Base your decision to buy a policy
policies also cover medication. A standard pol-
on the results of your comparison.
icy covers approximately 80 percent of medical
expenses with some restrictions.
• Automobile insurance can provide several dif-
ferent kinds of coverage: Liability coverage pro-
tects you from claims and lawsuits if you cause
1. Why do consumers need insurance?
an accident. Collision covers damage to your
2. What are six major types of insurance?
automobile if another vehicle hits it.
3. What factors should you consider when buy-
• Homeowners insurance covers a homeowner ing insurance?
when his or her home or property has been
damaged. Mortgage lenders generally insist that
a homeowner carry this type of insurance until
his or her mortgage has been paid in full.

Analyzing Your Saving and Investing Options
Economists define saving as the nonuse of stocks and bonds. Nevertheless, it is usually
income for a period of time so that it can be used impossible to get a higher rate of return without
later. You may already be setting aside some of your taking some risk. Of course, the very nature of
income for some future use, such as continuing risk implies that some investment may yield a
your education. lower rate of interest, too.

The Decision to Save Deciding How Much to Save and
Any saving that you
Invest Saving involves a trade-off like every other
do now may be only for purchases that require
more money than you usually have at one time. activity. The more you save today, the more you
When you are self-supporting and have more can buy and consume a year from now, 10 years
responsibilities, you will probably save for other from now, or 30 years from now. You will, however,
reasons. For example, you may save to have money have less to spend today. Deciding what percentage
in case of emergencies, such as losing your job, and of income to save depends on several factors:
for your retirement. Most Americans who save do • How much do you spend on your fixed expenses?
so for these reasons. Saving evens out a person™s
• What are your reasons for saving?
ability to spend throughout his or her lifetime.
• How much interest can you earn on your sav-
ings and, therefore, how fast will they grow?
Analyzing Your Options Generally, when
• How much income do you think you will be
people think of saving, they think of putting their
earning in the future?
money in a savings bank or a similar institution
where it will earn interest. However, you have If you expect to make a much higher income
many options of places and ways to invest your tomorrow, you have less reason to save a large
savings. The most common places are commercial percentage of today™s income. In this case, it
banks, savings and loan associations, savings banks, would be better to wait to start a large savings
and credit unions. Before depositing money, inves- plan. It is a good idea, however, to have some sort
tigate the different types of financial institutions in of savings plan.
your area and the services they offer. Each institu-
tion usually has several types of savings plans, each
paying a different interest rate. In comparison shop-
ping for the best savings plan for you, you need
to consider the trade-offs. Some savings plans allow Write down a list of short-term saving goals,
immediate access to your money but pay a low rate such as saving to buy a new bicycle. Make a list
of interest. Others pay higher interest and allow of typical ways in which you can save for such a
immediate use of your money, but require a large purchase. Then make a list of long-term saving
goals, such as saving for a house or retirement.
minimum balance.
Then, describe the different ways you can go
about achieving your goals. What is the major
Saving and Investing People usually distin-
difference between the two ways of saving?
guish between saving and investing. People have
savings plans because they want a sure, fixed rate
of interest. If people are willing to take a chance
on earning a higher rate of return, however, they
can invest their money in other ways, such as

Renting an Apartment
If you decide to rent an apartment, take time to 9. Is there trash collection or disposal? Where?
How often? By whom? Who pays for it?
choose wisely. Determine the best location in terms
10. What kind of burglary protection is there?
of getting back and forth from work or school and
11. What are the parking facilities?
convenience for shopping. Decide if you want a
furnished or an unfurnished apartment. Consider
The Lease
how much space you need to have adequate storage After you have selected the apart-
and be comfortable. Most importantly, determine ment you want, you probably will have to sign a
how much rent you can afford to pay. Monthly lease, a written agreement between you and the
rent plus related expenses should not be more landlord that states the major terms of your occu-
than one week™s take-home pay. pancy. It generally includes a description of the
rental property; the amount of rent to be paid and
Carrying Out the Search when it is due; how much deposit is required, what
To find an apart-
it covers, and under what conditions it may be for-
ment, consult the classified section of newspapers,
feited; and how long the lease is in force and under
ask friends for recommendations, or hire a rental
what conditions it may be renewed. The lease also
agent. Never agree to rent an apartment until you
should include the terms for rent increases; who
have personally seen it. The best time to do this
pays for specific utilities and repairs; what alter-
is during an evening or on a weekend, which will
ations you can make on the property; how much
reveal the surrounding noise level and what the
notice you must give before moving; whether
neighbors are like. If possible, talk to some of the
you can rent the apartment to someone else; and
people in the apartment complex to learn the
whether children, pets, or roommates are allowed.
advantages and disadvantages of moving into
Before signing a lease, inspect the apartment
the area.
with the landlord. Point out and write down any
Inspect the apartment and the surrounding area
damage to walls, floors, appliances, and fixtures.
carefully for the following:
Attach a copy of this list to the lease so that you
1. Is the building well-built, well-maintained, and
cannot be held responsible for damage done
before you moved into the apartment. Check to
2. Is the apartment the right size? Does it have
see if a security deposit is required in addition to
a convenient floor plan, enough wall space
the rental deposit. If it is, determine the amount
for your furniture, and adequate lighting and
and under what conditions it will be returned.
electrical outlets?
3. How many windows are there? Do they open
and close easily? Are there screens and storm
4. Is the apartment air-conditioned? Does it have
its own heating and cooling controls? 1. What are some things to consider if you
decide to rent an apartment?
5. Are major appliances, such as a stove and
2. When is the best time to look for an
refrigerator, in good working condition?
6. If there is carpeting, is it clean? Are there
3. What is a lease? What does it include?
drapes, blinds, or shades for the windows?
7. Does the building have fire walls? Smoke alarms?
8. Are laundry equipment and storage facilities


x Using Line Graphs.............................xvii
x Using Bar and Circle Graphs...........xviii
x Using Tables and Charts ....................xix
x Reading Maps .......................................xx

x Understanding Percentages................xxi
x Determining Averages:
Mean and Median ..............................xxii
x Understanding Nominal
and Real Values.................................xxiii

x Understanding Interest Rates ..........xxiv
x Reading the Financial Page ...............xxv


Using Line Graphs
A graph, like a picture, may present information in a more concise way than words.
Line graphs are drawings that compare numerical values. They often are used to compare
changes over time or differences between places, groups of items, or other related events.

Follow these steps to learn how to
understand and use line graphs. Then
Participation in High School Athletic Programs
answer the questions below.
1. Read the title of the graph.
This should tell you what to
expect or look for.
Participants (in millions)

2. Note the information on the left side of
the graph”the vertical axis. The informa-
tion being compared usually appears on
this axis.

3. Note the information along the
bottom of the graph”the hori-
zontal axis. Time often appears
along this axis.

4. Determine what the line(s) or
1970 1975 1980 1985 1990 1995 2000
curve(s) symbolizes.

6. Analyze the movement of the
5. Select a point on the line, then note the date below this
line (whether increasing or
point on the horizontal axis and the quantity measured
decreasing over time) or com-
on the vertical axis.
pare lines (if more than one
are on the graph) to deter-
mine the point being made.

PRACTICING THE SKILL Applying the Skill to Economics
1. About how many males participated in
1. What trends are shown on the graph?
high school athletic programs in 1970?
In 1997? 2. How do you think these trends affected the manufacture
and sale of sports-related products from the early to
2. About how many females participated in
late 1990s?
high school athletic programs in 1970?
In 1997?


Using Bar Graphs
2. Examine a bar on the graph. Note the date
LEARNING THE SKILL below the bar on the horizontal axis and the
Follow these steps to learn how to quantity measured on the vertical axis.
understand and use bar graphs.
New Vehicle Sales, 1992“1997
1. Read the title and labels. They tell you

Vehicles (in millions)
the topic, what is being compared, and 8
how it is counted or measured. 7
3. Analyze the change over time or
compare bars to determine the
point being made.

PRACTICING THE SKILL 1992 1993 1994 1995 1996 1997
Model Year
1. What year had the highest new car sales? Cars
Source: U.S. Bureau of Economic Analysis, 1997
2. About how many trucks sold in 1997? Trucks

Using Circle Graphs 2. Read the legend to see what
each segment represents.

LEARNING THE SKILL High School Student Foreign
Language Enrollment
Follow these steps to learn how to
understand and use circle graphs. 23% 67% Spanish
1. Examine the title to determine the subject. French
3. Compare the relative sizes of the circle
segments, thus analyzing the relationship
Source: Statistical Abstract of the United States, 1998
of the parts to the whole.

PRACTICING THE SKILL Applying the Skill to Economics
1. What percent of foreign language stu-
1. Using the bar graph, what projection could you make
dents are studying German?
about the future of new car sales?
2. What foreign language has the greatest
2. Based on the circle graph, which foreign language text-
student enrollment?
books probably have the greatest sales volume?


Using Tables and Charts
Tables and charts are often used to show comparisons between similar categories of informa-
tion. Tables usually compare statistical or numerical data. Tabular data is presented in columns
and rows. Charts often show a wider variety of information than tables.

Follow these steps to learn how
to understand and use tables. Then
answer the questions below.
Average Earnings of Full-Time Workers by Age and Education, 1996
Some High High School Four-Year
School Graduate College Degree
Age and Sex All Workers
1. Read the title of the table to
learn what content is being Male $42,077 $25,283 $32,521 $63,127
presented. 18“24 18,856 15,478 18,779 27,257
25“34 33,055 19,910 27,349 44,355
35“44 45,840 26,116 35,138 70,035
2. Read the headings in the top
45“54 51,705 34,527 39,178 72,461
row. They define the groups or
55“64 49,916 32,926 38,032 71,070
categories of information to be
Female $28,363 $17,313 $21,893 $41,339
17,002 12,512 15,219 24,980
26,119 16,826 19,526 34,132
3. Examine the labels in the 30,879 18,261 23,134 46,923
left-hand column. They
31,222 18,007 23,833 45,012
describe ranges or sub-
27,629 19,039 23,179 41,342
groups, and are often
organized chronologically
Source: U.S. Bureau of the Census
or alphabetically.

5. Compare the data presented
in the other columns. This is
4. Note the source of the data. It may tell
the body of the table.
you about the reliability of the table.

PRACTICING THE SKILL Applying the Skill to Economics
1. What are the average earnings for
1. What age-related trends do you notice?
25- to 34-year-old women with college
degrees? 2. What conclusions could you draw from this data about the
economic effect of education on earnings?
2. What are the average earnings for
18- to 24-year-old males without high
school diplomas?


Reading Maps
Maps are visual tools that show to scale the relative size and location of specific geo-
graphic areas. There are political maps, which show human-made boundaries. There are
physical maps, which show physical features of an area. There are also special purpose maps
that can show historical change, cultural features, population, climate, land use, or resources.
Regardless of type, all maps use symbols to convey information.

Follow these steps to learn how to understand and use maps. Then answer the questions below.

THE UNITED STATES: Land Use and Resources
1. Read the title to deter-0°N 120°W
130°W 5 60°W
140°W 110°W 100°W 90°W 80°W 70°W
mine the map™s content.
Agriculture L.
Wheat Superior
L. Michigan L.
Nomadic herding
Huron Ontario
40° 60°W
Hunting and
4. Examine the lines of lati-
gathering Er
UNITED tude and longitude to
find the absolute loca-
Little or no activity
Fruit STATES tion of specific places.
Manufacturing area
Wheat Tobacco
Lambert Equal-
Area projection ATLANTIC

Cotton Coal
150°W 130°W
70° 170°W Pecans
Fish and
other seafood
Ci r c
Arctic Forest
Fruit E
Alaska W
Hawaii Natural gas
60° S
Gulf of Mexico
160°W Fruit 0 250 500 mi.
0 100 mi.
0 300 mi. 20°N MEXICO
Tropic of
0 250 500 km
0 100 km
0 300 km

5. Read the legend, or key, to inter-
3. Look for a compass rose
pret any shapes, colors, bound-
2. Examine the map™s scale, which indi- or directional arrow to
ary lines, or symbols.
cates the ratio between the map™s size find the map™s directions.
and the actual area being represented.

PRACTICING THE SKILL Applying the Skill to Economics
1. What is the primary content shown on
1. How could this map be a helpful reference if you were
this map?
planning to buy ranch land to raise cattle?
2. Which region of the United States has
2. What generalizations could you draw from this map about
the heaviest concentration of manufac-
energy resources in the United States?
turing areas?


Understanding Percentages
If you shop, you probably like seeing the word percent. Stores often advertise sale prices as
a percent of regular price. Percent means “parts per hundred.” So, 30 percent means the same
thing as 30/100 or 0.30. Expressing change as a percentage allows you to analyze the relative
size of the change.

2. Find the sale price by subtracting
Follow these steps to learn how to cal-
the discount from the regular price.
culate and use percentages. Then answer
the questions below.
Calculating Percent
1. Suppose a pair of shoes Regular price of shoes $57.00 Regular price $57.00 $57.00
is on sale for 30 percent 30% .30 Discount 17.10 OR .70
off the regular price.
Discount $17.10 Sale price $39.90 $39.90
Calculate the discount
by multiplying the origi-
nal price by the sale per-
centage. Change percent 3. Or, figure the sale price by multiplying the regular
to a decimal before you price by the percent you will pay. (Subtract the sale
multiply. percentage from 100 to get the percent you will pay.)
Change percent to a decimal before you multiply.

Arithmetic Change vs. Percentage Change
Arithmetic change 1.6 billion pounds of butter sold this year
4. Calculate an increase in 1.5 billion pounds of butter sold last year
sales by subtracting the
.1 billion pounds
quantity sold last year from
the quantity sold this year.
Percentage change .067 100 6.7 percent

5. Determine the percentage change by dividing the arith-
metic difference by the original quantity. Multiply by 100
to change the decimal to percent.

PRACTICING THE SKILL Applying the Skill to Economics
1. A store advertises a shirt at 25 percent
In 1997 about 32 percent of all music recordings sold were
off the original price of $44. What is the
classified as rock music. That year about $12 billion was spent
sale price?
on all recordings. How much was spent on rock music?
2. What is the percentage increase in high
school enrollment from 1,165 students
to 1,320?


Determining Averages: Mean and Median
The most commonly used summary statistic is the average. There are two ways to compute
the average: by using the mean or the median. The mean is the average of a series of items.
When your teacher computes the class average, he or she is really computing the mean.
Sometimes using the mean to interpret statistics is misleading, however. This is especially true
if one or two numbers in the series are much higher or lower than the others. The median can
be more accurate. The median is the midpoint in any series of numbers arranged in order.

Follow these steps to learn how to
determine and use averages. Then answer Students™ Weekly Earnings
the questions below. From After-School Jobs
$ 20 2. Divide the sum
32 by the number
1. Suppose you want to find the
34 of students to
mean weekly salary for a group
find the mean.
41 $420 7 $60
of teenagers. First, add all the
earnings together.
3. Locate the median by finding the midpoint in the $420
series ($41). Compare the mean with the median.
Determine which is the more useful statistic.

Median Weekly Income of the Four Highest-Paid Students
5. When an even number of figures is in
$ 41 $ 53
the series, the median is the mean of
53 65
the two middle numbers. Follow
65 $118 $118 2 $59
steps 1 and 2 to find the mean.

4. Suppose you want to calculate the median for the four
highest-paid students. First, arrange the numbers in order.

PRACTICING THE SKILL Applying the Skill to Economics
1. What is the median salary for all seven
students? Average Monthly Rent: 2-Bedroom Apartment
2. What is the median salary for the four Atlanta, GA $688 Dallas, TX $ 718
lowest-paid students? Boston, MA $906 San Jose, CA $1,139

1. What is the mean monthly rent for these four cities?
2. What is the median monthly rent?


Understanding Nominal and Real Values
The rise in the economy™s average price level is called inflation. To make comparisons
between the prices of things in the past and those of today, you have to make the distinction
between nominal, or current, and real, or adjusted for inflation, values. You can use the con-
sumer price index (CPI), an index of average prices for consumer goods, to calculate real val-
ues. Then you can accurately compare changes in income and prices over time.

LEARNING THE SKILL 4. Determine the percentage increase in real price.
Subtract the percentage increase in CPI from the
Follow these steps to learn how to understand and calculate
percentage increase in nominal price. Evaluate
nominal and real values. Then answer the questions below.
the sale in real values.

1. Suppose a family
Purchase price of house in 1990: $50,000 CPI in 1990: 100
sells a house after
Sale price of house in 2000: $100,000 CPI in 2000: 200
living there for 10
years. To calculate
$ 100,000 $50,000 200 100
whether they made 1 100 100% 1 100 100%
50,000 $50,000 100 100
any profit from the
$ 50,000 100
sale, they need to
know the real sale
price of their house.
First, find the nomi- 0%
nal price increase.

2. Calculate the nominal percentage increase 3. Determine the percentage
in price. Divide the amount of increase by increase in the consumer price
the original price and multiply by 100 to index. First find the actual
express the answer as a percent. change in CPI. Then divide the
amount of increase by the origi-
nal CPI and multiply by 100.
Earnings: $10 per hour
5. Suppose that last year you earned Raise: 5%
$10 per hour. You receive a 5 percent Inflation Rate: 3%
raise. The CPI is 3 percent higher than 6. Calculate the real
last year™s CPI, which means there is a salary increase by
3 percent inflation rate. subtracting the infla-
2% tion rate from the
nominal raise.

PRACTICING THE SKILL Applying the Skill to Economics
1. What was the nominal price increase on
Between 1980 and 1997, the amount spent on advertising in
the sale of the house?
the United States increased by 240 percent. How could you
2. How much money, in real dollars, was
adjust this figure for inflation?
made on the house?
3. How much was the real value of the


Understanding Interest Rates
When you deposit money in a savings account, the bank pays you interest for the use of
your money. The amount of interest is expressed as a percent, such as 6 percent, for a time
period, such as per year. Two types of interest exist: simple and compound. Simple interest
is figured only on the principal, or original deposit, not on any interest earned. Compound
interest is paid on the principal plus any interest that has been earned. Over time, there is
a significant difference in earnings between simple and compound interest.

3. Calculate the account
LEARNING THE SKILL balance for the first two
years, assuming the bank
2. To calculate the simple
Follow these steps to learn how to pays the same interest
interest earned, multiply
understand and calculate interest rates. rate each year. Add the
the principal by the
Then answer the questions below. principal, the first year™s
interest rate.
interest, and the second
year™s interest.
1. Suppose you deposit $100 in a sav- Simple Interest
ings account that earns 6 percent 6% .06 $ 100 $100
simple interest per year. Get ready
.06 6
to figure your earnings by convert-
$6.00 6
ing 6 percent to a decimal.

6. Determine the interest
earned in the second year.
Multiply the new balance by 7. Figure the total bank
the interest rate. balance after two
4. Suppose you deposit $100
years. Add the second
in a savings account that
year™s interest to the
earns 6 percent com-
Compound Interest first year™s balance.
pound interest per year.
$ 100 $100 $ 106 $106.00
Calculate the interest
earned the first year. .06 6 .06 6.36
$6.00 $106 $6.36 $112.36

5. Find the bank balance for the end of the first
year. Add the principal and first year™s interest.

PRACTICING THE SKILL Applying the Skill to Economics
1. What would be the difference in earn-
1. What would be the impact of compounding interest on
ings between simple and compound
a daily basis rather than an annual basis?
interest if your initial balance was
$1,000 rather than $100? 2. Banks often pay higher rates of interest on money you
agree to keep in the bank for longer periods of time.
2. What would be the difference in earn-
Explain why this might be.
ings between simple and compound
interest on your $100 savings after five


Reading the Financial Page
A stock market report alphabetically lists stocks and provides information about stock
prices and trades. Every business day, shares of stock are bought and sold. At the beginning
of each trading day, stocks open at the same prices they closed at the day before. Prices gen-
erally go up and down throughout the day as the conditions of supply and demand change.
At the end of the day, each stock™s closing price is recorded.

Follow these steps to learn how to understand and
9. Examine how the
use the financial page. Then answer the questions below.
day™s closing stock
price compares
7. Note the vol-
5. Review the yield. with the prior busi-
ume, or number
The yield is the ness day™s closing
of shares of
return on invest-
1. Locate the stock price. Positive num-
3. Note the stock, traded
ment per share of
in the alphabeti- bers indicate a
ticker symbol, that day. The
stock. It is calcu-
cal list. Names price increase.
or computer number given
lated by dividing
are abbreviated. Negative numbers
code, for the represents hun-
the dividend by the mean a price drop.
stock. dreds of shares.
closing price.

Stock Quotations

52 Weeks Yld Vol Net
Hi Lo Stock Sym Div % PE 100s Hi Lo Close Chg
94.15 29.25 TxInstr TXN .17 .2 57 39008 80.80 77.55 79.60 1.5
59.50 41 TexPacTr TPL .40 .9 28 23 44.25 43.85 44.25 .15
48 35.50 TX Util TXU 2.30 6.2 13 17307 37.20 36.45 36.80 .15

2. Examine the 4. Evaluate the 6. Read the price/earnings 8. Examine the day™s high, low, and
stock™s history annual dividend. ratio. Lower price/earnings closing stock price.
over the last 52 Stockholders ratios generally mean more
weeks. The high receive this divi- earnings per share.
and low prices dend, or payment,
for one share of for each share of
stock appear. stock they own.

PRACTICING THE SKILL Applying the Skill to Economics
1. How many shares of Texas Instruments
If you had purchased 100 shares of Texas Instruments stock at
stock were traded on the day shown?
its lowest 52-week price and sold it at this day™s closing price,
2. What was the day™s highest price for a
how much money would you earn?
share of Texas Utilities stock?
3. Which stock had the greatest increase in
closing price from the previous day?

Standard & Poor™s Databank . . . . . . . . . . A14 Buying Insurance . . . . . . . . . . . . . . . . . . . . A37
Analyzing Your Saving Options . . . . . . . . . A38
Life Skills Renting an Apartment . . . . . . . . . . . . . . . A39
Planning Your Career . . . . . . . . . . . . . . . . A30
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . A40
Financing Your College Education . . . . . . . A31
Preparing a Resume . . . . . . . . . . . . . . . . . . A32
Spanish Handbook
Preparing a Budget . . . . . . . . . . . . . . . . . . A33
Spanish Glossary . . . . . . . . . . . . . . . . . . . . A54
Maintaining a Checking Account . . . . . . . A34
Spanish Chapter Summaries . . . . . . . . . . . A71
Filing an Income Tax Return . . . . . . . . . . . A35
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A91
Borrowing Money . . . . . . . . . . . . . . . . . . . A36

The data and forecasts for the graphs, tables,
and charts in the Databank are based on
information from Standard & Poor™s. View the
epp.glencoe.com Web site for data updates.

The American People Federal Debt, Total Outstanding . . . . . . . . A22
National Debt Per Capita . . . . . . . . . . . . . . A22
U.S. Population Projections . . . . . . . . . . . . A15
Federal Budget Receipts . . . . . . . . . . . . . . . A23
Civilian Labor Force . . . . . . . . . . . . . . . . . . A15
Hours and Earnings in Private Industries . . A16
The Financial Sector
The U.S. Economy Interest Rates . . . . . . . . . . . . . . . . . . . . . . . A24
Consumer Credit Outstanding . . . . . . . . . . A24
Gross Domestic Product . . . . . . . . . . . . . . . A17
Personal Saving . . . . . . . . . . . . . . . . . . . . . A25
Annual Changes in Consumer Price
Money Stock . . . . . . . . . . . . . . . . . . . . . . . . A25
Indexes . . . . . . . . . . . . . . . . . . . . . . . . . . A17
Personal Consumption Expenditures . . . . . A18
The Global Economy
Personal Consumption Expenditures,
Economic Groups: Population, Exports,
Nondurable Goods . . . . . . . . . . . . . . . . . A18
and GDP . . . . . . . . . . . . . . . . . . . . . . . . . A26
Average Prices of Selected Goods . . . . . . . A19
Growth Rates in Real GDP . . . . . . . . . . . . . A26
Business Sector: Changes in Productivity
World Population by Age . . . . . . . . . . . . . . A27
& Related Data . . . . . . . . . . . . . . . . . . . . A20
Countries Ranked by Population . . . . . . . . A27
Inflation in Consumer Prices . . . . . . . . . . . . A20
Aging Index in Selected Nations of
The Government Sector the Americas . . . . . . . . . . . . . . . . . . . . . . A28
Median Age, World . . . . . . . . . . . . . . . . . . A28
Federal Government Expenditures . . . . . . . A21
U.S. Exports and Imports . . . . . . . . . . . . . . A29
Total Government Expenditures . . . . . . . . . A21
Employment and Unemployment,
Federal Government Net Receipts and
Selected Economies . . . . . . . . . . . . . . . . A29
Net Outlays . . . . . . . . . . . . . . . . . . . . . . . A22


The American People
U.S. A
Population Projections, 2000 “2050


In millions



2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Source: U.S. Bureau of the Census

Civilian Labor Force, 1950“2000
of civilian non-institutional population

Civilian employment as percent


Both Genders, 16“19 years of age



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