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I.

Word Meanings From Context

The United States has a vast amount of newly discovered clean geothermal (natural heat from the Earths crust) energy. Tapping into this energy source could provide at least 10 times the energy that can be obtained from the nations known coal reserves. 1. What does vast mean? a. a large amount b. not enough c. dangerous d. having no known use 2. Which word in the above paragraph means supplies that are available to be used? a. geothermal b. tapping c. continent d. reserves Using IQ tests and MRI brain scans, researchers have found that the measurable intelligence of teenagers can rise and fall over time. We used to believe that intelligence was static. But now, because of new studies, we know that teens and even fully mature adults can grow more brain cells when needed. 3. What does static mean in the above selection? a. noise b. not changing c. moldy d. unreal 4. What are researchers? a. people who lose things b. people who search for knowledge c. creatures from Mars d. students who dont study

1___________2___________3___________4___________
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II.

All That Glitters

Kim wants to drive her three kids and their two friends to the soccer game. The problem is that her shiny new SUV only has room for five passengers including the driver. Kim misses her old eight passenger SUV but shes still thankful that the new one gets much better gas mileage. 1. Which of the following statements is false? a. Kims new vehicle is not meant to carry six people. b. Kims old SUV had seating for more passengers than the new one. c. Kim wont be able to take her kids to the soccer game. Karim had $500 dollars to invest. He was considering a number of options. Id really like to buy gold bars with the money and hide them in a big hole in our yard, he said. Five hundred dollars wont buy much gold, his father pointed out. You could put all the gold in your shoe and never notice that its there. That takes all the fun out of it! Karim groaned. I just wont buy any gold at all! When Karims father suggested that he deposit the money in his new savings account at the local bank, Karim quietly stated, That could work. 2. What did karim want to buy? a. new shoes b. a small gold coin c. gold bars d. a used hamburger 3. From the selection we can tell that Karim _______. a. will save his $500 at the local bank b. might decide to put his money into his bank account c. will put the cash under his pillow and wish for a tooth d. does not trust banks Scientists in Australia have discovered a planet that seems to be a solid diamond. They estimate it to be about five times the size of Earth. The diamond planet is 4,000 light years away, so dont plan on traveling there any time soon. 4. Which one of the following do you think scientists needed in order to make this discovery?
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a. a microscope b. a smartphone c. a jewelery store d. a radio telescope

1___________2___________3___________4___________

III.

Troubling Words

Tremor Troll found Troubled Troll sitting in a corner of his tree fort. A closed book lay by his side as Troubled stared at the wooden floor. Is something wrong, Troubled? asked Tremor. Troubled took a deep breath and responded, In this story Im reading, it says that a boy is wearing a shirt thats inside out. Is that a problem? Tremor asked. Yes, said Troubled. You see, I keep wondering why its inside out instead of outside in! After all, if the inside is on the outside then the outside must be on the inside! Right? That makes sense, Tremor agreed. But inside out is the way everyone says it. But why? demanded Troubled Troll. I dont know, Tremor confessed. Its no big deal. Troubled was not comforted. And tell me, what if it is a big deal, he implored, and no one knows that its a big deal and someday everyone wakes up and realizes that theyve been saying it wrong? And what if....what if they suddenly understand that it really has been a big deal all along? That wont happen, Tremor Troll insisted, and even if it does, it wont exactly turn our world upside down. Troubled Troll was doing his best to remain calm. He gazed at his friend and
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whispered, Why didnt you say downside up?

For discussion: 1. Can you name anything in the story that shows that Troubled Troll is actually quite intelligent? 2. In what way does Troubled behave in a silly or foolish manner?

IV.

From Outer Space

FoxNews.com reports that Dr. Richard B. Hoover, an astrobiologist at NASA, believes that he has found the fossils of bacteria in meteorites. In other words, he claims to have found traces of life from outer space. Not surprisingly, his claim is controversial; many scientists do not accept that Dr. Hoover has come to the correct conclusion from what he has observed. Therefore, he has invited over 5,000 scientists to review his work and to publish their comments. 1. Bacteria are a _______. a. group of scientists b. place where meteors come from c. kind of restaurant d. form of life 2. When something is controversial, people _______. a. get sick from it b. believe it is ancient and extremely rare c. have strong disagreements about it d. brush their teeth with it 3. Dr. Hoover seems confident that his research will be proven correct because _______. a. he is named after a vacuum cleaner b. he has invited many scientists to look closely at his work c. he works for NASA
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d. he gets a rash when he touches meteorites 4. Based on the reading selection, which statement is true? a. No one believes that Dr. Hoover has made an important discovery. b. Astrobiologists are smarter than other scientists. c. Dr. Hoover believes he has found fossils of bacteria. d. Dr. Hoover did his work without using a microscope. 1___________2___________3___________4___________

V.

Vitamin D

Scientists have known for a long time that vitamin D is essential for humans. If children have a vitamin D or calcium deficiency, they can develop rickets, a softening of the bones. New studies are showing that people of all ages need vitamin D to help them fight off diseases by keeping their immune systems strong. 1. The main idea of this paragraph is that vitamin D _______. a. is found in milk b. has been studied by scientists c. is no secret d. is important for good health 2. If something is essential, it is _______. a. harmful b. expensive c. dreadful d. needed 3. When you have a deficiency of something, you _______. a. have all you need b. do not have enough c. look like an onion d. are rich Our bodies can make vitamin D when our skin is exposed to sunlight. However, its best to eat a diet that is rich in the vitamin.
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4. The remainder of the above incomplete paragraph probably goes on to _______. (Remember that every paragraph should have a single main idea.) a. say why vitamin C is also important b. explain why you should brush your teeth after eating beetles c. give some examples of foods that are rich in vitamin D d. say which diseases might be prevented by vitamin D 5. Which statement is false? a. Some foods contain vitamin D. b. Our bodies can use sunlight to make vitamin D. c. Some people dont have to get vitamin D from food. d. If youre a child, you will definitely get rickets if you dont play in the sun. 1___________2___________3___________4___________5___________

VI.

Madison and Carson

Carsons older sister, Madison, is a very good student. She isnt satisfied to just get by in school. Shes involved in extra activities including band and the Good Citizens Club. 1. Which statement is not supported by the paragraph. (It may or may not be factual.) a. Music is part of Madisons school experience. b. Madison is a straight A student. c. Carson is younger than Madison. d. Madison is a member of at least one club. 2. What is the main idea of the first paragraph? a. Madison was born before Carson. b. Madison likes music. c. Madison is a very good student. d. Madison is cruel and unusual.

Almost every day after school, Madison and Carson have fun at the local winter
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sports facility. Carson glides down the mountainside without ever losing his balance. Madison has a different style. She often soars into the air, lands in various twisted positions, and waits for her snowboard to join her on the ground. 3. From this paragraph, we can conclude that _______ a. Carson prefers skiing to snowboarding. b. Madison and Carson do not live in Florida. c. Madison is as graceful as a swan. d. It never snows in Vermont. 4. The selection informs us that _______ a. Madison doesnt like winter sports because she always falls. b. Carson owns a plane. c. Madison loves tennis. d. Both Carson and Madison enjoy their time on the snowy slopes.

1___________2___________3___________4___________

VII.

Drawing Conclusions

Luke is very competitive and loves to win when he plays sports. Kyler doesnt take sports all that seriously. So when their tennis singles match was over, it was no surprise that both boys were in a good mood, especially Luke. 1. Which statement is most likely true? a. Luke won the match. b. Kyler won the match. c. The game was rained out. d. Kyler was given a new truck. Leslies main playlist has forty rock songs, fifteen rap songs, and one country song. It also contains twelve classical instrumentals. 2. Which statement is probably NOT true. a. Leslie likes music. b. Leslies favorite music is country. c. Leslie likes rock better than rap.
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d. Leslie listens to a wide range of music. I think youll like your present, Scott. Youll still be able to use it for at least the next couple of months before the weather gets too warm. It can be a lot of fun, especially if you take a lesson or two first. Remember, people are often injured by using these things if they dont know what theyre doing. 3. Scotts new present is a _______. a. rifle b. tennis racquet c. snow shovel d. snowboard Brad put a load of clothes into the washing machine. An hour later, he unloaded the damp clothes and put them into the dryer. Later, he unloaded the clothes and carried them upstairs in a basket. To his dismay, Brad noticed that the load of laundry just didnt smell nearly as fresh as usual. 4. One of the following is the reason why. Which one is it? a. Brad forgot to turn on the washing machine. b. Brad wasnt paid to do the laundry. c. Brad had forgotten to put detergent into the machine. d. The radio didnt work.

1___________2___________3___________4___________

VIII. BPA BPA is a chemical that is put into plastics that are used as food containers. Unfortunately, some of the BPA passes from the containers into the foods that they are meant to protect. When people and animals eat those foods, BPA goes
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into their bodies. There are studies that have found that BPA can increase our chances of getting a number of serious diseases. Many food companies are concerned about that risk and are starting to use containers that contain no BPA. Thats good right? Not necessarily. Some scientists caution that the substitute chemicals being used might turn out to be dangerous as well. They could possibly be even worse!

1. According to this article, BPA _______. a. is used to make food taste better b. leaks into food c. means Better Plastic Articles d. makes us strong 2. Food companies are starting to _______. a. tell people not to worry about BPA b. pretend that they dont use BPA in their containers c. charge more for BPA d. use containers that do not contain BPA 3. Some of the new food containers _______. a. might have chemicals that are dangerous b. look more colorful c. leak all over shelves d. have extra BPA at no additional charge 4. The final paragraph of the article makes the point that _______. a. its best to just stop eating b. BPA might really be good for us c. change does not always mean improvement d. there is no such thing as a safe food container

1___________2___________3___________4___________

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IX.

Vocabulary - Meanings From Context

Use the context to help you determine the meaning of each highlighted word.

1. In the early 1600s, a dangerous trip across the Atlantic Ocean was a daunting idea. The Europeans, who would someday be known as the Pilgrims, must have been a very determined and brave group of settlers. A daunting task is one that would _______ someone. a. tickle b. amuse c. lose or misplace d. frighten or intimidate 2. The original Pilgrims called themselves the Saints and referred to others who joined with them for the voyage as the Strangers. In this context, original means _______. a. one of a kind b. first c. humorous c. musical 3. The Saints and Strangers argued about how they would live in the New World. After much discussion, they came together and signed the Mayflower Compact. The Compact was _______. a. a container for makeup b. a small item c. a machine used for mashing corn d. an agreement 4. When the Pilgrims landed in what is now Massachusetts, they were fearful that the Native Americans would attack them. However, the people that they encountered, the Wampanoag Indians, were a peaceful and generous tribe. To encounter, is to _______.
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a. meet b. note how many c. fight d. exchange text messages

1____________2____________3____________4____________

X.

Vocabulary - Meanings From Context

Use the context to help you determine the meaning of each highlighted word.

1.I believe that if you lower taxes so that people can keep more of the money they earn, it will be an incentive for them to work harder. What is the meaning of incentive? __________. a. a reason to do something b. a small amount of money c. a tax d. a good job 2. Most of America's Founding Fathers did not believe in women's suffrage. Only men could vote in the United states until 1920. What is suffrage ? a. something that causes physical pain b. an early flag c. skirts that did not cover ankles d. the right to vote 3. Some people are sure that the new health care law will mean better care for everyone. Others argue that the law will mean less care and longer waiting lines for those who need to see doctors. It's a controversy that will not go away soon. A controversy is something that people _______. a. have strong disagreements over b. blow their noses into
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c. need to pay for a visit to a doctor d. eat with sweet candy 4. Removing seeds from cotton plants was a slow job until Eli Whitney invented the cotton gin. What is a cotton gin? a. a drink b. a book c. a machine d. a cloth

1___________2___________3___________4___________

XI.

Sports Quotes

Complete each quote by writing the appropriate sport in the blank. Each sport below is only used once . Look for clues in the quotes to help you choose correctly.

baseball

basketball

football

golf

hockey

skiing

soccer

tennis

1. ____________________ is a good walk spoiled.

Mark Twain

2. I let my racket do the talking. That's what I am all about, really. I just go out and win ____________________ matches. Pete Sampras

3. Sure, luck means a lot in ____________________. Not having a good quarterback is bad luck. Don Shula

4. If God had wanted man to play ____________________, he wouldn't have given us arms. Mike Ditka
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5. It was a fun ride. I've enjoyed my time on the ice and I've enjoyed more and more people getting interested in the game of ____________________. Ron Francis

6. ____________________ combines outdoor fun with knocking down trees with your face. Dave Barry

7. Little League ____________________ is a very good thing because it keeps the parents off the streets. Yogi Berra

8. If all I'm remembered for is being a good ____________________ player, then I've done a bad job with the rest of my life. Isiah Thomas

XII.

Quotations

See if you can answer the following questions about the meanings of quotations.

1. Acting is all about honesty. If you can fake that, you've got it made. Burns Burns was _______. A. saying that he is honest B. angry about what actors do C. a fake D. making a joke 2. If passion drives you, let reason hold the reins. This means that _______. A. you should think before you act B. avoid fast horses C. do whatever you feel like doing D. let someone else drive
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George

Benjamin Franklin

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3. You must do the things you think you cannot do. This means that _______. A. we should fool ourselves B. we are confused C. we can't do all that much D. we're capable of doing more than we realize

Eleanor Roosevelt

4. Government's first duty is to protect the people, not run their lives. Reagan Reagan wanted to _______. A. have government solve all our problems B. limit the power of government C. shrink the military D. eliminate all governments 5. You aren't learning anything when you're talking. This means that it's important to _______. A. talk louder B. teach C. help others. D. listen to others

Ronald

Lyndon B. Johnson

1____ 2____ 3_____ 4____ 5___

XIII. Quotations See if you can answer the following questions about the meanings of quotations.

1. A teacher is someone who talks in our sleep.

Alfred E. Neuman
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The point of this quote is that _______. A. students dream about going to school B. students don't pay attention in school C. homework is relaxing D. teachers shouldn't disturb students' naps 2. A person who won't read has no advantage over one who can't read. Twain Twain is saying that _______. A. reading isn't necessary B. reading ability is nothing if it isn't used C. he is a great author D. you should learn how to read 3. Too bad SpongeBob isn't here to enjoy SpongeBob not being here. Squidward Squidward actually means that _______. A. he misses SpongeBob B. he likes SpongeBob's visits C. he enjoys SpongBob's absense D. he enjoys television 4. Continuous effort - not strength or intelligence - is the key to unlocking our potential. Winston Churchill Churchill really meant this because he was not a _______. A. smoker B. leader C. farmer D. quitter 5. An ounce of practice is worth more than tons of preaching. Gandhi Which statement or quote is similar to the above quote? A. The pen is mightier than the sword. Edward Bulwer-Lytton B. Actions speak louder than words. C. Practice makes perfect. D. Courtesy is as much a mark of a gentleman as courage. Theodore Roosevelt
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Mark

Mohandas

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1_____ 2_____ 3_____ 4______ 5____

XIV. Quotations of Martin Luther King, Jr. Dr. Martin Luther King, Jr. is famous for his courageous leadership in the fight to end racial segregation in mid 20th century America. He advocated civil disobedience, a nonviolent approach to defying the legal system that upheld segregation. Dr. King is also remembered for his powerful sermons and speeches. This worksheet features a few examples of his words. Match the quote by Martin Luther King, Jr. with the comment or interpretation below. The first one has been matched for you. The words of Martin Luther King, Jr.:

1. Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.

2. I have decided to stick with love. Hate is too great a burden to bear.

3. I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.

4. Injustice anywhere is a threat to justice everywhere.

5. Life's most urgent question is: what are you doing for others?

6. Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.
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7. Our lives begin to end the day we become silent about things that matter. A. People should behave in a way that makes life better for their fellow humans.

B. This was clearly Dr. King's belief as he dedicated his life to speaking out against injustice.

C. In this analogy, darkness is to hate as light is to love.

D. Hating others hurts the hater.

E. Believing that one is right is no excuse for being in the wrong.

F. If you agree with this quote, you cannot feel completely safe when others are treated unfairly.

G. Behavior, not skin color, tells us what we should think of a person.

1__C__ 2_____ 3_____ 4_____ 5_____ 6_____ 7_____

XV.

Thought Provoking Words

Quotations, or quotes for short, are statements written or spoken, that are repeated by others to make a point. The point may be to show what a certain person believes about something. They may be referred to in speeches or print as words of wisdom. Many popular quotes are humorous or witty. There are a number of good sources of quotations. You can use a book that contains a large collection and find the topics you're interested in by using the
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index. There are some good sites on the Internet where topics can be found by using a keyword in a search field. The source you use will tell you who said or wrote the words. It will usually also show you how to find other quotations from the same individual. You will often find quotations that contradict (disagree with) each other. For example, here are two quotes that were found by searching the topic money.

When I was young, I thought that money was the most important thing in life; now that I am old, I know it is by Oscar Wilde No matter how little money and how few possessions you own, having a dog makes you rich by Louis Sabin

See if you can answer the following questions. 1. The liberty of speaking and writing guards our other liberties. Thomas Jefferson Which statement contradicts the above quote? a. Freedom of the press is an important right. b. People should be free to express their opinions in speech and written words. c. Freedom of religion should not be limited. d. To protect liberty, governments should stop people from saying unpopular things. 2. Which quote indicates that cats are thinkers? a. If you would know a man, observe how he treats a cat. Robert Heinlein b. Cats are mysterious kind of folk - there is more passing in their minds than we are aware of. Sir Walter Scott c. As every cat owner knows, nobody owns a cat. Ellen Perry Berkeley d. What greater gift than the love of a cat? Charles Dickens 3. You know it's love when all you want is that person to be happy, even if you're not part of their happiness. Julia Roberts
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According to this quote, __________ a. Love must be painful. b. Love is never real. c. Love is unselfish. d. Love can never last. 4. Teaching should be such that what is offered is perceived as a valuable gift and not as a hard duty. Albert Einstein Einstein is saying that _______ a. Students learn best when they feel that what they're learning is important to them. b. Teachers should offer cash awards to students for doing their homework. c. Never make students work hard. d. Teachers should wrap their assignments in real wrapping paper. 5. This is a court of law, young man, not a court of justice. Oliver Wendell Holmes, Jr. Which statement comes closest to the meaning of the above quote? a. You entered the wrong building. b. Law and order is always a bad thing. c. Basketball players never play fair! d. Laws aren't always fair.

1_____ 2_____ 3_____ 4_____ 5____

XVI. Science News Do you want to keep up with the latest research and discoveries in science? There are many good websites that you can visit to make that easy. One great site is called Science News for Kids. This site reports science news covering a wide range of subjects. The articles are written with the interests and educational experience of younger readers in mind, but adults will find this site suitable for them as well. 1. The author believes that adults _______
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a. won't understand a site for kids. b. will find Science News for Kids useful. c. don't like science as much as kids. Another wonderful site, one that I check out every day, is called Science Daily. The site is constantly updated with news, often about exciting findings that change how we look at the world and the universe. Whether it's newly unearthed discoveries about creatures that have been extinct for millions of years or the latest advances in cures for human diseases, you'll find it at Science Daily. 2. What does daily mean? a. never at night b. only for scientists c. every day 3. What does unearthed mean in the paragraph? a. dug up b. from another planet c. shot into space These sites post stories as they become news and also archive all the past articles. That way you can enter a search term and find articles on just about anything related to science that they've ever published. 4. What does archive (AR-kive) mean? a. a nest in a boat b read carefully c. keep in a safe place If you haven't done so already, why not visit these fascinating sites and see what you think?

1___________2___________3___________4_________ XVII. Thank You Sincerely Thanks for the start to the lives that weve had. Thanks for the nights that you went without rest. So many memories, most happy, some sad; If you werent perfect, you still passed the test,
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Holding our hands, holding back all the fears. Thank you sincerely for all of those years. So many hours that you worked to provide Multiplied by all the days that we grew, When we behaved and the times we defied, Never a doubt we could still count on you, Making our laughter and drying our tears. Thank you sincerely for all of those years. Thanks for the rules that we wished were not there. Thanks for the wisdom we sometimes denied. All the attention and all of the care, All the forgiveness and all of the pride, Pointing out faults but then calling out cheers. Thank you sincerely for all of those years. For the examples you set every day, Teaching with actions, those lessons hold tight. We hardly knew just how much you could say Simply by doing what you knew was right. Now that were older, the logic appears. Thank you sincerely for all of those years. Thank you for love not required to be earned, Not ever fading as time moves along. You have to know that the love is returned, Not always showing, but always so strong. And you still care as your golden time nears. Thank you sincerely for all of the years.

Love, Bob

For Discussion: Who is the you in this poem? Who is the narrator? Can you identify with the narrator? Give examples of how it reminds you of your own experiences or feelings.

XVIII.

The Leader
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Patient and steady with all he must bear, Ready to meet every challenge with care, Easy in manner, yet solid as steel, Strong in his faith, refreshingly real, Isnt afraid to propose what is bold, Doesnt conform to the usual mold, Eyes that have foresight, for hindsight wont do, Never backs down when he sees what is true, Tells it all straight, and means it all too. Going forward and knowing hes right, Even when doubted for why he would fight, Over and over he makes his case clear Reaching to touch the ones who wont hear. Growing in strength, he wont be unnerved, Ever assuring hell stand by his word. Wanting the world to join his firm stand, Bracing for war, but praying for peace, Using his power so evil will cease: So much a leader and worthy of trust, Here stands a man who will do what he must.

XIX. The Leader

1. What are the qualities of a leader according to the author? 2. What qualities do you believe are important for a leader to possess? 3. Is the author referring to a specific person in this poem? If you think so, do you agree that he is a true leader? 4. Name someone who you believe is or was a great leader. Give your reasons.

XX.

Who Elects the President?


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November 7, 2000 is a very special day in the United States. Voters all across the nation are __1__ representatives in local and national races. Some people think that theyre voting for the president of our country too. Theyre not! Again, they're voting for __2__. These representatives are called electors. They are part of a system called the Electoral College. In most states the electors are chosen on a winner take all basis. That makes it possible for one candidate to win the most electors while getting less popular votes nationally than his __3__. The electors will meet in their respective states and cast their votes for president and vice-president on December 18, 2000. The Constitution does not __4__ the electors to vote for the candidates that they are pledged to, but they almost always do. On January 6, 2001, just two weeks before the new president and vice-president take office, the votes will be counted in Congress. If no one gets a majority (more than half) of the electoral votes, at least 270 out of 538, the __5__ will be chosen by Congress. The House of Representatives will choose (one vote per state) the president and the Senate will choose the vice-president. Its not likely, but we could actually end up with a president from one party and a vicepresident from another. In an extremely close election, all kinds of strange outcomes are __6__. Will the __7__ that most voters prefer be the next __8__? And when will we even know?

XXI. Who Elects the President?

1. phoning

asking

wishing

electing

2. president

someone

candidates

representatives

3. mother

election

memory

opponent

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4. force

see

remind

popcorn

5. voters

winners

people

guys

6. possible

impossible

good

bad

7. food

election

car

candidate

8. diner

victory

dog

president

XXII. Political Polls Many people are closely following the political polls during the final weeks preceding this important election. But how do these polls actually work? Polls are surveys of a relatively small number of people compared to the actual number who will vote. They are an attempt to determine who may actually win an election in advance of the final vote. Lets say that 100 million people are expected to vote in the general election. If 100 people are asked for their opinions, each respondent represents a million voters. Obviously, the results of such a poll are not very reliable. The more people surveyed, the more meaningful are the results.
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Pollsters have various ways of making their polls more accurate. They try to find a representative variety of people to question. For example, they look for people with similar backgrounds and from similar regions to those of all the voters. Pollsters also ask questions that try to determine how many people who support each candidate will actually vote. If a candidate has a higher percentage of enthusiastic supporters than his opponent, he has a better chance of winning than the simple numbers might suggest. Pollsters may only count those who they consider to be likely voters. If we look at polls that are taken over time, we can often detect a trend. We can tell if a candidate is gaining or losing support when we compare the most recent poll to earlier ones. Polls often ask potential (those who could be) voters what they like or dislike about each candidate. The campaigns use those results to help them decide which issues to stress or which positions to clarify. They can also determine which voters to target with their messages. Because no two people are the same, polls can never be perfect predictors of the real vote. But they can give important clues as to where things may be heading. At the very least, if you like politics, polls can be great entertainment.

Solve the puzzle using the highlighted words from the article.

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Across 2. Surveys 4. Make clear 6. Able to be counted on 7. Figure out 9. Correct 11. Clearly 12. Try 14. Stands for 15. Find, or notice

Down 1. Matters of discussion 2. Coming before 3. Areas, or places 5. Really 8. Interested in; excited about 10. One who responds, or answers 13. The way that something is developing or changing

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XXIII.

Airbus crisis over

Airbus says it has turned the corner after a crisis connected to production problems and turmoil in the boardroom at its A380 super-jumbo project that has gone on for the past year. Speaking at the Paris air show, Louis Gallois, CEO of the European planemaker, said, "Airbus is back." Airbus, which announced a raft of orders on the first day of the show, is competing with Boeing, its American rival, for the title of the largest planemaker in the world. Boeing is expected to reveal the numbers of orders for its 787 Dreamliner soon. Airbus orders unveiled on Monday included Qatar Airways confirming a $16bn order for 80 A350 Airbus planes and ordering three A380 super-jumbos for about $750m. Boeing and Airbus are also competing for orders from aircraft leasing firms. Orders from these companies - who rank highly among the biggest global buyers of aircraft - are often regarded as an indication of how successful a model will be in the long term. Airbus also secured orders from US Airways that are worth $10bn for 22 of its A350 jets, 60 A320s and ten of its A330-200 wide-body planes. A few months ago, Airbus unveiled a major cost-cutting programme aiming to reduce the workforce in Europe by 10,000, as well as announcing a group restructuring. "I can tell you with full confidence that Airbus is back and fully back, as you have started noting yesterday as demonstrated by our first day announcements," said Mr Gallois on the second day of the air show. However, Boeing also announced a deal with General Electric (GE) on the show's first day. GE's commercial aviation services placed an order for six 777 Boeing freighters valued at around $1.4bn, to be delivered in the last quarter of 2008. A Wall Street Journal website report, quoting the Delta operating chief yesterday said that Delta Air Lines were on the verge of ordering as many as 125 Boeing 787 jetliners by the end of this year. However, a spokesman for Delta later said that it had been having conversations "with several aircraft makers" and that "no final decision" had been made on future fleet purchases.

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Questions
Q1 - The problems at Airbus have been resolved completely. are well on their way to being sorted out. are far from resolved.

Q2 - Airbus announced a large number of orders on the first day of the show. some orders on the first day of the show. a few orders on the first day of the show. Q3 - Qatar Airways ordered 83 planes on Monday. 80 planes on Monday. 3 planes on Monday. Q4 - US Airways placed an order for the new super-jumbo. didn't place an order for the new super-jumbo. may have placed an order for the new super-jumbo. Q5 - Boeing announced sales of the Dreamliner. may sell some Dreamliners to General Electric. may sell some Dreamliners to Delta Air Lines. Q6 - The Wall Street Journal website report was definitely correct. was possibly correct. was definitely wrong.

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XXIV.

Neither a Borrower Nor a Lender Be

Both borrowers and lenders in the sub-prime mortgage market are wishing they had listened to the old saying: neither a borrower nor a lender be. Last year people with poor credit ratings borrowed $605 billion in mortgages, a figure that is about 20% of the home-loan market. It includes people who cannot afford to meet the mortgage payments on expensive homes they have bought, and low-income buyers. In some cases, the latter could not even meet the first payment. Lenders include banks like HSBC, which may have lost almost $7 billion. Both sides can be blamed. Lenders, after the 2-3 percentage point premium they could charge, offered loans, known as 'liar loans', with no down payments and without any income verification to people with bad credit histories. They believed that rising house prices would cover them in the event of default. Borrowers ignored the fact that interest rates would rise after an initial period. One result is that default rates on these sub-prime mortgages reached 14% last year- a record. The problems in this market also threaten to spread to the rest of the mortgage market, which would reduce the flow of credit available to the shrinking numbers of consumers still interested in buying property. So, the housing market will remain weak; borrowers with weak credit histories will find the credit window closed; people with adjustable-rate mortgages will have to spend less so they can meet their increased payments; tighter lending standards and falling home prices will reduce consumers' ability to tap the equity in their homes. But as long as the labour market remains strong, which it has done despite job losses in housing-related industries, and as long as real incomes continue to go up, consumers might complain, but they are unlikely to go on a buyers' strike on a scale that will make this slowdown become a recession.Therefore, we should not be too worried, but, at the same time, we should be a bit cautious and watch closely how things develop.

Questions
Q1 - Sub-prime mortgage loans were offered only to low income families. to people who wanted to by very expensive houses. to people with poor credit histories. Q2 - Who believed that rising house prices would cover them in the event of a default?

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Borrowers Lenders Both Q3 - Borrowers have been caught out because they lied when applying for the loan. because house prices have risen. because interest rates rise after a while. Q4 - According to the text, people with adjustable-rate mortgages will not be able to get credit. will have to economise. have weak credit histories.

Q5 - The housing market problems could easily tip the counrty in recession. are unlikely to tip the country into recession. will cause a buyers' strike. Q6 - The writer is a bit concerned about the housing market. very worried about the housing market. not worried about the housing market.

XXV. Profit and Loss


Look at the graph, which shows a firm's income, total expenditure and advertising costs over an eight-month period. Which month do the sentences underneath describe? For each sentence, choose a letter from A-H. Don't use a letter more than once.

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Questions
Q1 - This was the least profitable month. A B C D E F G H Q2 - In this month, income and expenditure were the same. A B C D E F G H Q3 - In this month, the company made a loss, but advertising costs were lower than in the previous month.
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A B C D E F G H Q4 - In this month, advertising costs were at their peak. A B C D E F G H

Q5 - In this month, income, expenditure and advertising costs were all higher than the previous month. A B C D E F G H

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