Psycho Pass is in a futuristic world where in Japan, people are judged and ruled by this thing called the Sibyl System. Japan has Psycho Pass scanners all over the place. Psycho Pass is the mental state of your mind and the units of these measurements are Hue color and Crime Coefficient. A high Crime Coefficient either means that you're committing a shit ton of crimes or you're gonna attempt a crime. Hue color is basically your stress level so they go along together.
There is also a police organization called the Public Safety Bureau which is consisted of Inspectors, the people in charge of the Enforcers (the shepherds), and Enforcers, criminals that are out there to fight other criminals (the sheep). You also got the Chief but we're not gonna get into that. The main character is an Inspector of the Public Safety Bureau btw.
It's really freaky and graphic. I mean the blood, the eyeballs, the organs, the exploding bodies... I honestly don't know which one is creepier. The things those criminals do... It's also quite the badass anime w/ awesome theme songs with the exception of the second season's OP song. If you're familiar with Accel World, the online virtual reality thing on both anime look similar.
The series takes place in the near future, when it is possible to instantaneously measure and quantify a person's state of mind and personality. This information is recorded and processed, and the term "Psycho-Pass" refers to a standard used to measure an individual's being. The story centers around Inspector Akane Tsunemori who is a newcomer to the Public Safety Bureau.