This chapter introduces students to the variety of policy decisions that the modern state faces. It surveys the overall level of government activity for a variety of states and describes the range of governmental functions in society. It 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  substantive examples of government policy including the demographic challenge posed by aging populations and a comparison of "human development" data.