This annual publication contains reading materials designed to help students understand the complexities of the domestic and foreign policy issues facing the United States. The first portion of the book features background reading on the structure of the Federal Government. Next, 10 domestic policy issues are covered: the economy, education, civil rights, social programs, health care, immigration, energy, environment, agriculture, and crime. Finally, 10 foreign policy issues are addressed: the Soviet Union, defense, Central America, the Middle East, international trade, Western Europe, nuclear proliferation, world poverty and U.S. foreign aid, South Africa, and Japan. Each section of materials on an issue identifies key questions, provides background reading, formulates the current issues in that area, and, in a separate space headed "The Debate," provides pro and con positions on controversial issues. The teacher's guide contains lesson plans for the introductory material and each issue covered in the book. The lesson plans use instructional strategies that help students develop a variety of citizenship skills. Each lesson includes student objectives; a list of terms and concepts; a focus skill such as collecting, organizing, and analyzing information; and three to five learning activities. The guide also contains unit test materials and answers. (DB)