The seventh edition of this text continues to introduce new economics students to key principles essential to an understanding of fundamental economic problems. It makes clear the policy alternatives that Australian society must use to cope with these problems in an international context. The text has been updated to consider those parts of the Australian economy that have been transformed in recent years and the increased emphasis on global competition in the economic environment, that is introduced in the early chapters of the text. It successfully strikes a balance between the academic rigour that instructors demand and the simplicity that students need. Totally new cases and boxed examples emphasize application of economic principles. Primarily concerned with 'mainstream' economics, the text recognises the ideology of market capitalism and acknowledges criticism of the mainstream approach, allowing students to form their own views about the faults and limitations of mainstream ideas. Increased discussion of economic data and cases equips students with the tools to critically assess economic debates in both the public and private sectors, as well as recognise the human interest aspects of economic concepts.