Most, if not all, of the world’s most important social complications have an economic aspect. Microeconomics provides the tools to evaluate the trade-offs that individuals, firms, and governments experience because of limited resources. It considers the choices that are made, the social context in which they take place and the implications for human welfare.

Economists apply these tools to study a wide range of controversial public policy questions including the structure of the legal system, government restrictions on domestic and international markets, environmental regulations and design of tax policies.

Macroeconomics explores the sources of economic growth and the causes of recessions and inflation. Macroeconomic analysis assesses monetary policy, explains the performance of financial markets and considers international trade and financial links.