Lecture, three hours; discussion, one hour. Requisites: courses 40 (or Economics 1 or 11 or equivalent introductory economics course), 60 (or Political Science 6 or Statistics 10 or equivalent introductory statistics course). Introduction to economic theory for policy analysis. Broad focus on evaluating rationale for government intervention in economy, in particular to address market failures and issues of economic inequality. Major emphasis on market failures in context of environmental sustainability, and economic inequality arising from markets for human capital, health, housing, and labor. Students are expected to have working knowledge of basic statistical and economic concepts. Letter grading.