Faced with shrinking state funds, rising student demand, high failure rates, and racial and ethnic achievement gaps, the introductory microeconomics course became a bottleneck for business students at California State University, Northridge. The Economics Department responded with the creation of a flipped, introductory microeconomics course where students watch online lectures before attending face-to-face, active-learning, class sessions. Raw data suggests the course redesign was a success but large, racial and ethnic achievement gaps remain. However, regression analysis that controls for college preparedness indicates that race and ethnicity are insignificant determinants of student performance in the flipped, microeconomics principles course. Gender is a significant factor with female students earning marginally lower exam scores than male students. In satisfaction surveys, students with English as a second language believe the online lectures helped them learn the course material. Nearly one quarter of all students take two developmental English classes prior to enrollment into microeconomics principles. A flipped class has the potential to help students learn course material but it cannot erase skills deficits. The University must provide additional resources to ensure the success of every student.