Introduction to Business Economics for Engineers Thinking like an Economist! What are the basic tools for economic thinking? Can you really understand what economics is all about?

1. Economics for Engineers
Part 1
Economics for Engineers – Part I
Mohammad Tawfik

2. Thinking like an Economist
Based on:
Thinking like an Economist: A Guide to Rational Decision
Making
By: Randall Bartlett, Ph.D.
Economics for Engineers – Part I
Mohammad Tawfik

3. 6 Principles of the Economist's Toolkit
Economics for Engineers – Part I
Mohammad Tawfik

4. Principle Number 1:
People respond to incentives.
Economics for Engineers – Part I
Mohammad Tawfik

5. We need to anticipate the incentives we are
creating Economics introducing policies!
when for Engineers – Part I
Mohammad Tawfik

6. Principle number 2:
There is no such thing as a free lunch
Economics for Engineers – Part I
Mohammad Tawfik

7. Opportunity Cost
Economics for Engineers – Part I
Mohammad Tawfik

8. Resources are scarce!
Time, money, food
Economics for Engineers – Part I
Mohammad Tawfik

9. Principle number 3: No thing is just one thing;
There are always at least 2 sides to every
interaction.
Economics for Engineers – Part I
Mohammad Tawfik

10. Every buy is a sell
Economics for Engineers – Part I
Mohammad Tawfik

11. If we do not spend money, no one
will earn money!
Economics for Engineers – Part I
Mohammad Tawfik

12. Principle number 4: The law of unanticipated
influences
Economics for Engineers – Part I
Mohammad Tawfik

13. Butterfly effect!
Economics for Engineers – Part I
Mohammad Tawfik

14. Medical cost will increase when disturbance
happens in Iran!
Economics for Engineers – Part I
Mohammad Tawfik

15. Bombing in Iraq results in
a drop of tourism in Egypt!
Economics for Engineers – Part I
Mohammad Tawfik

16. Principle Number 4:
The Law of unanticipated consequences
Economics for Engineers – Part I
Mohammad Tawfik

17. Accidents because of red-light cameras!
Economics for Engineers – Part I
Mohammad Tawfik

18. Economics for Engineers – Part I
Mohammad Tawfik

19. Principle number 6:
No one is, and no one ever can be, in complete
control.
Economics for Engineers – Part I
Mohammad Tawfik

20. Principle number 6:
No one is, and no one ever can be, in complete
control.
Economics for Engineers – Part I
Mohammad Tawfik

21. Economics for Engineers – Part I
Mohammad Tawfik

22. 3 Core Concepts
Economics for Engineers – Part I
Mohammad Tawfik

23. I - Rationality
Economics for Engineers – Part I
Mohammad Tawfik

24. I - Rationality
Economics for Engineers – Part I
Mohammad Tawfik

25. Economics for Engineers – Part I
Mohammad Tawfik

26. Personal preferences.
How we decide not to what we decide!
Economics for Engineers – Part I
Mohammad Tawfik

27. Your preferences appear in your choices!
Economics for Engineers – Part I
Mohammad Tawfik

28. II – Marginal Analysis
Economics for Engineers – Part I
Mohammad Tawfik

29. Economics for Engineers – Part I
Mohammad Tawfik

30. If we woke up tomorrow and gas prices had
doubled, how would that affect automobile usage?
Economics for Engineers – Part I
Mohammad Tawfik

31. Economics for Engineers – Part I
Mohammad Tawfik

32. Increasing
spending in
crime prevention
Economics for Engineers – Part I
Mohammad Tawfik

33. Water-Diamond Paradigm
Value in use vs. Value in Exchange
Economics for Engineers – Part I
Mohammad Tawfik

34. III - Optimization
Economics for Engineers – Part I
Mohammad Tawfik

35. Equi-marginal Analysis
Economics for Engineers – Part I
Mohammad Tawfik

36. Imagine yourself on a new TV reality
show.
Economics for Engineers – Part I
Mohammad Tawfik

37. The Price of Safety!
Economics for Engineers – Part I
Mohammad Tawfik

38. How to achieve Economic Efficiency?
Economics for Engineers – Part I
Mohammad Tawfik

39. Economists define efficiency as people being
made better off.
Economics for Engineers – Part I
Mohammad Tawfik

40. They figured they could not find a strong, objective
measure of social welfare, so they settled for a
very weak one instead
Economics for Engineers – Part I
Mohammad Tawfik

41. Pareto Optimum
Economics for Engineers – Part I
Mohammad Tawfik

42. If we take a number of people, and something
makes any one of them better off by their own
judgment without making anyone else worse off,
that is an unambiguous social improvement.
Economics for Engineers – Part I
Mohammad Tawfik

43. Incentives and Tragedy of the
Commons
Economics for Engineers – Part I
Mohammad Tawfik

44. Tradable Quotas
Economics for Engineers – Part I
Mohammad Tawfik

45. Future Values – Discount Rate
Economics for Engineers – Part I
Mohammad Tawfik

46. Behavioral Economics
Economics for Engineers – Part I
Mohammad Tawfik

47. The Ultimatum Game
Economics for Engineers – Part I
Mohammad Tawfik

48. Anchor Points
Economics for Engineers – Part I
Mohammad Tawfik

49. Endowment Effect
Economics for Engineers – Part I
Mohammad Tawfik

50. Status Quo Effect
Economics for Engineers – Part I
Mohammad Tawfik