Lecture, three hours. Requisites: courses 101, 103, and Mathematics 33A or 115A. In past decade economists have learned remarkable amount about how society works. Increased understanding through application of distinctively economic methods of research--explicit mathematical models and eclectic statistical techniques--to topics like healthcare, crime, education, and immigration, leading to increased understanding of inequality, how to measure it, how inequality has increased in U.S., how America differs from other rich countries, and what causes inequality. Study of this work, with focus on two important influences on inequality--education and health. P/NP or letter grading.