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Contents 1

Passage 1 Economics—A Word with Many Different Meanings 1

Passage 2 Wants vs.Needs 5

Passage 3 Scarcity and Choices 7

Passage 4 Supply and Demand 11

Passage 5 Inflation 15

Passage 6 Who Needs Money? 17

Passage 7 Goods and Services 19

Passage 8 Interdependence 21

Passage 9 Stock Market 23

Passage 10 Summer Fun:The Economics of the Lemonade Stand 25

Passage 11 Money Doesn't Grow on Trees 27

Passage 12 Macroeconomic Goals 29

Passage 13 Economic Growth 31

Passage 14 The Circular Flow 33

Passage 15 The Declining Cost of Living in America 35

Passage 16 The Three Financial Statements 37

Passage 17 Bookkeeping and Accounting Basics 41

Passage 18 Debits vs.Credits 45

Passage 19 Will My Business Make Money? 49

Passage 20 Raising Money Through Equity Investments 53

Passage 21 Foreign Exchange Market：What Is It? 57

Passage 22 The Basics of Futures Trading 61

Passage 23 Benefits of Trade 65

Passage 24 Promissory Notes 69

Passage 25 A Definition of Entrepreneurship 73

Passage 26 Corporation Basics 75

Passage 27 Role of Central Banks in Foreign Exchange Market 79

Passage 28 Growing Trade,Shrinking World 83

Passage 29 Income Tax:Introduction 87

Passage 30 What Is Internal Auditing? 91

Key to Exercises 95