real-world applications - MathnMind

NAME _______________________________________________________ DATE _____________________________________
REAL-WORLD APPLICATIONS
STUDENT ACTIVITY for Transparency 10
Use with Lesson 10-6.
About Per Capita Personal Income
Many statistics are generated about the income of workers in the United States. One important
statistic is the per capita personal income. Per capita is an expression that means “for each
individual.”
The per capita personal income of workers is spent in a variety of ways. The income that remains
after taxes is known as disposable income, money that may be spent or saved. In 2000, workers
spent 12% of their disposable income on durable goods, 29% on non-durable goods, and 56%
on services.
Durable goods are manufactured items that are expected to last a long time such as automobiles
and kitchen appliances. Nondurable goods are short lived and include items such as paper
products, groceries, and petroleum products. Services include such things as haircuts, dry
cleaning, and medical care.
Directions: Use what you have seen and read to answer the following questions.
1. In dollars, the per capita income of which state increased the most? The least?
Massachusetts; Hawaii
2. In percent, what was the increase in per capita income in your home state? What was the national
percent increase? See students’ work; 51.4%
3. Estimate the per capita income of your state for the year 2010. Explain how your estimate was
generated. See students’ work.
4. For a 10-year period, would you expect an increase or a decrease in per capita income? Explain your
answer. See students’ work.
Making the Connection
5. Research what percent of the disposable per capita personal income earned by U.S. workers is saved.
Speculate on the amount of money you may need to save for certain events in your future. Write a
short paper explaining why it is important to put aside a set amount of earnings in a savings plan.
See students’ work.
© Glencoe/McGraw-Hill T10 Glencoe Algebra 1