Economics is a vital component of any student's educa tion because an understanding of economic principles is essential for success in the modern world. The rapid evolu- important tion of global interdependence among both highly indus in Practice Itrialized and less developed economies affects students' lives. My goal in writing this book has been to communi cate the relevance of economics to everyday life by blend ing 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 Policy P nations that formerly operated under systems of central issues. planning.