Unit One Text: What Is Economics? Additional Text: The Economic Problem Unit Two Text: Demand and Supply Additional Text: Utility and Consumer Choice Unit Three Text: Price Elasticities of Demand and Supply Additional Text: The Factors Influencing the Price Elasticities of Demand and Supply Unit Four Text: Cost of Production Additional Text: Economies and Diseconomies of Scale Unit Five Text: Monopoly Additional Text: Perfect Competition Unit Six Text: Oligopoly Additional Text: Monopolistic Competition Unit Seven Text: Gross Domestic Product Additional Text: Two Alternative Approaches of Measuring GDP Unit Eight Text: Economic Growth Additional Text: Sources of Economic Development Unit Nine Text: Inflation Additional Text: Unemployment Unit Ten Text: Money and Banking Additional Text: The U.S.Central Bank: The Federal Reserve System Unit Eleven Text: Foreign Exchange and Exchange Rate Additional Text: The Effects of Exchange Rates on the Economy Unit Twelve Text: The Balance of Payments Additional Text: International Monetary Systems Unit Thirteen Text: Fiscal and Monetary Policy Additional Text: Lags in the Economy's Response to Monetary and Fiscal Policy Unit Fourteen Text: Role of Government in the Economy Additional Text: Government's Policies Toward Externalities Appendix Ⅰ Answers to Exercises Appendix Ⅱ Chinese Translation of the Texts