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UNIT ONE 1

Text The Introduction of Economics 1

Further Reading People Respond to Incentives 9

UNIT TWO 12

Text Thinking Like an Economist 12

Further Reading Why Economists Disagree 19

UNIT THREE 22

Text What Is a Market? 22

Further Reading Market Price in Competitive and Non-competitive Market 29

UNIT FOUR 32

Text Speculators and Markets 32

Further Reading Speculators and Markets 38

UNIT FIVE 41

Text The Development of China's Service Sector 41

Further Reading Problems in China's Service Sector 47

UNIT SIX 49

Text The Management Functions 49

Further Reading Controlling 59

UNIT SEVEN 61

Text Marketing:General Mills Introduces a New Product 61

Further Reading Consumer Preferences 68

UNIT EIGHT 70

Text Why Business Smarts Are Investing Smarts 70

Further Reading Investments That Pay Today—and Tomorrow 77

UNIT NINE 80

Text Making More Money at Work—CNN's Gerri Willis Offers Five Tips on How to Fatten Your Paycheck 80

Further Reading Your Portfolio:4 Moves for 2006—Don't Guess Whether the Big Risk Is Inflation or Recession.Be Ready for Both 86

UNIT TEN 88

Text The Value of Information 88

Further Reading The Value of Information in the Dairy Industry 95

UNIT ELEVEN 97

Text Information and Consultation 97

Further Reading More Emphasis on Process 103

UNIT TWELVE 105

Text Employee Relations:Motivation and Morale 105

Further Reading Needs of Workers 112

UNIT THIRTEEN 114

Text The World after Textile Quotas 114

Further Reading U.S.Officials Hail Textile Agreement with China 121

UNIT FOURTEEN 124

Text Evolution of the Payments System 124

Further Reading Money in the U.S.Economy 131

UNIT FIFTEEN 133

Text What Is the Dow Jones Industrial Average,Anyway? 133

Further Reading Equity Securities:Common Stock 141