This course develops the economics view of the role of government from both normative and positive perspectives. Conditions under which markets perform well are presented, as well as cases where there is market failure. Legal and social institutions that support markets are discussed, as are government policies to intervene in markets. Economic models of the operation of government are developed to understand possible shortcomings of government action, as well further linkages of economics to law. The economics perspective on income redistribution is presented along with examples from specific government programs.