This is a core course for first year MPP students. The main objective of this module is to introduce the students to the formulation of public policy from the application of concepts and methods in economics. The course is organized in two parts. The first part deals with microeconomics–the study of individual decision making by consumers and businesses. This part begins with a discussion of the basic economic problem of choice and scarcity, and the concepts of opportunity cost and efficiency. It then covers other key microeconomic concepts including demand, supply, preference, production, market models and market failure. The second part considers the economy as whole. That is, the study of macroeconomics, which considers the aggregate of transactions in markets for goods and services and factors of production. This part starts with an exposition of the economic system and presents the basis for the role of economic policies in the management of the overall economy. These aggregate level analyses enable the broader considerations of societal welfare such as economic growth, employment and inflation. This part ends with a review of the role of government and institutions in enabling the effectiveness of the policies that are elicited from both microeconomic and macroeconomic analyses.