III. Reading Comprehension (30 points , 2 points for each )

　　Passage One

　　Question 21 to 25 are based on the following passage

　　Why isn’t a dollar worth as much as it used to be ? One dollar is always worth the same amount , that is , 100 cents. But the value of a dollar is how much it can buy. The value of money depends on the cost of living. Economists say that the cost of living is the money that a family must pay for the necessities of life such as food, housing or rent , clothes, and medical expenses. For many years now, the cost of living has increased greatly, so the value of the dollar has decreased. When a dollar has a low value, you cannot buy as many things with it.

　　No one fully understands why the cost of living keeps increasing, but economists believe that workers and producers can make prices go up . As workers earn more money, they have more money to spend, so they demand more goods. If there is a great demand for certain goods, the prices of these goods go up. At the same time , if there’s a shortage of goods, the prices also go up. For example, if everyone wants to buy more and more gas, the price of gas goes up. When companies keep gas from buyers, they can also make the price of gas go up.

　　Families need to know what happens to their money. They need to make their income meet the cost of living, so many people plan a family budget. A budget is a list of monthly expenses. If your expenses add up to more than your income, you must find ways to save money. Maybe you’re spending too much on entertainment. Or if you’re spending too much on clothes, you may want to sew your own clothes. Budgeting helps you spend your money wisely as the cost of living increases.

　　21. According to the writer, what is the value of a dollar ?

　　A. 100 cents B. Things it can buy

　　C. The cost of living D. The amount of work you do for it

　　22. What will happen to the value of the dollar when the cost of living increases?

　　A. The dollar will not be worth as much as it used to be.

　　B. The value of the dollar will remain to be the same amount.

　　C. The value of the dollar will increase greatly.

　　D. None of the above will happen.

　　23. Why does the cost of living keep increasing ?

　　A. Workers are always poorly paid.

　　B. Producers offer more and more goods.

　　C. People want to buy more and more goods.

　　D. Government does less and less to stop it.

　　24. Why do families need to know what happens to their money?

　　A. To have a better life B. To make more money

　　C. To avoid loss of money. D. To prevent from being poor.

　　25. What can we learn about “budget” in the passage?

　　A. The money you’ve already spent in a month.

　　B. The things you are not going to spend money on every month.

　　C. The ways you find to save money to meet the cost of living.

　　D. The expenses you plan to meet every month according to your income.