Defining the Field-what do you think that economics is? (1) Subject Matter Based Definitions (2)UItra-pragmatic definitions( what economists do) (3)Methodology Based Definitions This much is certain a. Economics pretty much includes all topics related to human society

What is economics? Normative Definition Economics is the science that studies how to efficiently allocate economic resources Positive definition economics is the science that studies how an economy operates or how economic variables are

ENGINEERING ECONOMICS I TO INVEST, OR NOT TO INVEST, THAT IS THE QUESTION. (With apologies to William Shakespeare) Given one or more potential projects, how do we decide in which to invest, if any? What criteria do we use to evaluate potential projects?

ENGINEERING ECONOMICS ESTIMATING THE PROFITABILITY OF A CHEMICAL PLANT Estimating Investment Estimating Cost of Production Profitability Evaluation Return on Investment (ROD) Payout time(Tpay) DCF Rate of Return(DCFROR) Transfer Price

ENGINEERING ECONOMICS II INVESTMENT ANALYSIS Companies(and individuals) invest money in order to earn money Examples Build a factory to make washing machines and dryers → Open laundromat Write novel(what is being invested here?) Get a degree in chemical engineering

Yale law School Public Law and Legal Theory Research Paper No 52 Center for Law, Economics and Public policy Research Paper No 275 University of virginia School of Law Law and economics research Paper series Research Paper No. 03-1 Contract Theory and the limits of Contract Law Alan Schwartz and robert e. scott

Marciano Siniscalchi Game Theory (Economics 514) Fall 1999 Logistics We(provisionally) meet on Tuesdays and Thursdays 10: 40a-12: 10p, in Bendheim 317. I will create a mailing list for the course. Therefore please send me email at your earliest convenience so I can add you to the list. You do not want to miss important announcements, do you?

Political Economy Defined Political Economy is the application of economic principles to the analysis of political decision making. -elf- -interestin- the marketplace, this often leads to efficiency; different implications in \political market. Maximization-one goal may be to maximize social welfare

Externality Defined An externality is present when the activity of one entity(person or firm)directly affects the welfare of another entity in a way that is outside the market mechanism. Negative externality: These activities impose damages on others. Positive externality: These activities benefits on others

Public Goods Defined Pure public goods share two characteristics Nonrival Cost of another person consuming the good is zero Nonexcludable-Very expensive to prevent others from consuming the good