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ECO 101
Microeconomics
Gale L. Pooley,
Ph.D., MAI, MRICS, CCIM, SRA




gpooley@alfaisal.edu
How did this happen?
Prince Alwaleed bin Talal al Saud
Prince Alwaleed bin Talal al Saud
Prince Alwaleed bin Talal al Saud




           Bill Gates
Prince Alwaleed bin Talal al Saud




           Bill Gates
Scarcity
Scarcity

Choices
Make Better
 Choices
Time Commitment
	

 	

 Class 	

	

 	

 	

 	

 	

 3 Hours
	

 	

 Homework 	

	

 6 Hours
	

 	

 Total 	

	

 	

 	

 	

 	

 9 Hours
afecon101.blogspot.com
Think
  like an
Economist
Words
  Numbers
Illustrations
Economist’s
Dictionary
Who should
make your
 choices?
What
  do you
want to be?
Get the most
 out of life
Rational
Incentives
  Margin
Optimize
Tradeoffs
Tradeoffs



        Mileage                                            Safety


A 2001 National Academy of Sciences study estimated that the traffic
death toll attributable to past downsizing was approximately 2,000 lives
per year.
Economic Models
Economic Models
Simplified Version of
       Reality
Economic Models
Simplified Version of
       Reality

 Value in Prediction
Incentives Matter
Incentives Matter
 Change Incentives
 Change Behavior
Incentives are
more important
   than goals
Consequences
matter more than
   intentions
Unintended
Consequences
Macro   Micro

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