Chapter Overview

Why Is Government Involved in the Economy?

• What are the basic principles behind government involvement in the economy?
• What basic economic roles does government serve?

Should Government Be Involved in the Economy?

• What are the main arguments in the debate over the proper role of the government in the economy?

What Are the Goals of Economic Policy?

• What are government leaders trying to achieve by passing specific economic policies?
• How is the national government fundamental in promoting a strong and stable national economy, business development, and international trade?
• How is the national government fundamental in regulating industrial relations and protecting the environment and consumers?

What Are the Tools of Economic Policy?

• How can we classify the broad set of tools used by the government to accomplish its economic policy goals? More specifically, what are these tools called?

The Politics of Economic Policy Making

• How do political leaders disagree about what the priorities of economic policy should be?
• What groups have the most influence on economic policy making? Does economic policy serve the public interest or special interests?
• How does the debate over economic policy reflect the broader debate over American political values?