This revision and expansion of the 1966 edition of the student materials, ED 040 101, is comprised of a student workbook and text for Unit II. It is a careful study of the structure and performance of the United States Market system including the aspects of how market competition between buyers and sellers affects resource allocation, what is produced, how goods and services are produced, how they are distributed, and how much is produced in total. The major objective is to help students learn enough to permit understanding and evaluation of the performance of the system in satisfying the desires and aspirations of the American people. The unit incorporates the basic strategy of problem-solving through inquiry. The nine chapter text includes general discussions by the principal author; three readings are keyed to the chapters. The programmed student workbook contains twelve programs, criterion tests, and thirteen exercises. An extensive use of graphs is continued in the revision, but the unit test is not repeated. Unit I is described in SO 001 700. Other available related documents are: 1) the test editions of the Teacher's Materials for both Unit I and Unit II, ED 040 100; and, 2) the final report of the curriculum development project, ED 028 093. Addison Wesley Company will be publishing the future editions of the units. (SBE)