1. Chapter 4
Policies of
The
State

2. Policy and Government
Strong Governmental Role exists in industrialized society
Privatization (newer trend): firms run by the state given to private industry to run

3. Constraints that Limit Policy Options
Gross Domestic Product (GDP): total amount of all economic transactions in a state; how rich or poor a country is
Poorer countries have more constraints (example: military spending limits, lack of infrastructure; amount of spending in education)

4. Constraints
PPP per capital GDP: per capital GDP adjusted to consider fluctuations in currencies; also a market of wealth of a country