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Applied economic analysis, based on an appreciation of the regulatory and legislative environment, is essential to modern business and government practice. Economic analysis plays a crucial role in formulating and understanding public policy, adjudicating disputes, and planning business strategy. Legislators shape policy using economic analysis. Regulators weigh proposed rules with economic models. Enforcement officials base actions on economic tests. The courts increasingly adopt economic efficiency as a primary criterion. Juries are often persuaded by economic reasoning and analysis. In many business cases, economic analysis provides the only coherent picture of the facts. For attorneys and business people, effectively communicating with the government now requires an understanding of the policy-makers’ economic framework and the ability to speak in economic terms.