It has been decade and a half since the authors first collaborated on an economics text. Those years have shown that in economics, change is the only constant. Since our first effort to set forth the principles of economics for beginning students, economists have gained a better understanding of both the world at large and their own discipline. In macroeconomics, more is known about the dynamics of inflation and disinflation, the role expectations in shaping economic behavior, and the interaction of the domestic economy with the world economy. In microeconomics, the contributions of public choice theory have lent a new perspective to many policy issues, the work of the modern Austrian school has brought new emphasis to the role entrepreneurship and longestablished fields of economics such as antitrust policy, human resources and income distribution have taken on new life.