Economics is a vital component of any student’s educa­tion because an understanding of economic principles is essential for success in the modern world. The rapid evolu­tion of global interdependence among both highly indus­trialized and less developed economies affects students’ lives. My goal in writing this book has been to communi­cate the relevance of economics to everyday life by blend­ing examples and applications with economic theory in each chapter. In this edition. I’ve revised to update the information, to give you the most relevant and interesting applications, and to provide analysis of emerging issues for the 21st century, including the transition to free markets in nations that formerly operated under systems of central planning.