Chapter Overview

This chapter introduces students to the variety of policy decisions that the modern state faces. It first presents the overall level of government activity for a variety of states, and describes the range of governmental intervention in society—from the transfer of resources through the use of biased subsidies and regulation, to direct administration of economic enterprises. It then describes and analyzes variations in states’ policies in the areas of defense, education, research and development, health and social welfare, redistribution of income, and economic development. The chapter concludes with three substantive examples of government policy—Norway’s provisions to encourage Norwegian-language publications; a comparison of economic development and "human development;" and the effectiveness of educational policies.

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