202 lecture 1

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  • Why do some people live like this?
  • In the previous lesson we were talking about the iPhone as a great innovation. But what is “Innovation”?
  • In is not true because places don’t design things, people design things. Ideas occur in minds not in places.
  • Welcome to OneMinuteEcon. In this lesson we want to talk about ideas, inventions, and innovations.
  • 202 lecture 1

    1. 1. ECO 202Macroeconomics
    2. 2. Gale L. Pooley,Ph.D., MAI, MRICS, CCIM, SRAgpooley@alfaisal.edu
    3. 3. How did this happen?
    4. 4. Prince Alwaleed bin Talal al Saud Bill Gates
    5. 5. ScarcityChoices
    6. 6. Make Better Choices Choices
    7. 7. Syllabus
    8. 8. Time Commitment Class 3 Hours Homework 6 Hours Total 9 Hours
    9. 9. and student ID number
    10. 10. GradesChatsChatsChatsChats
    11. 11. Think like anEconomistEconomist
    12. 12. Words NumbersIllustrationsIllustrations
    13. 13. Economist’s Dictionary
    14. 14. Get the most out of life out of life
    15. 15. RationalIncentives Margin Margin
    16. 16. OptimizeTradeoffsTradeoffs
    17. 17. Tradeoffs Mileage SafetyA 2001 National Academy of Sciences study estimated that the trafficdeath toll attributable to past downsizing was approximately 2,000 livesper year.
    18. 18. Economic ModelsSimplified Version of Reality Value in Prediction
    19. 19. Incentives Matter Change Incentives Change Behavior
    20. 20. Incentives aremore important than goals than goals than goals
    21. 21. Consequencesmatter more than intentionsmatter more than intentions
    22. 22. UnintendedConsequences
    23. 23. Macro Micro
    24. 24. Science Hard Soft
    25. 25. Most peopleMost of the timeMost of the time Economics is aMost of the time Soft Science
    26. 26. What is Wealth?What People Want
    27. 27. by makingothers happy
    28. 28. Global Device
    29. 29. ARM Holdings Wolfson Marvel Skyworks U.S. CSR Linear Technologies U.K. NXPNational Semiconductor Germany Sharp Korea Samsung Toshiba Japan Infineon Broadcom Taiwan Numonyx Micron China Dialog Semiconductor Texas Instruments STMicroelectronics Silicon Storage RF Microdevices Cirrus Logic
    30. 30. Ideasoccur in minds not places
    31. 31. Hockey StickTrends
    32. 32. $100Income PerPerson Angus Maddison Per Day $3 1 2012 AD
    33. 33. $100 Northern Europe North AmericaIncome 33x PerPerson Angus Maddison Per Day $30 “The Millennium–Poor Until 1820” World 10x $3 1 1820 2012 AD
    34. 34. Percentage Change Relationships Cause and Effect Areas Areas Areas Areas
    35. 35. PPrice Y X Quantity Q
    36. 36. GDPGross Domestic ProductGrossmarket value of all The Domestic Productfinal goods and servicesproduced in a country in a given time
    37. 37. GDP Per CapitaGross Domestic Product GDP Per PersonGrossAverage GDP Domestic Product
    38. 38. Market Value What something would sell for
    39. 39. Market Value One Apple plus One Orange = Three Riyals
    40. 40. AllEverything except...Stuff you don’t sell
    41. 41. FinalIntermediate Final
    42. 42. IntermediateFinal
    43. 43. Goods and Services
    44. 44. Goods Services
    45. 45. Produced New StuffDoes not include the sale of used goods
    46. 46. Within aCountry
    47. 47. Onlyproductionwithin Saudi Arabia
    48. 48. In a givenperiod of time Year Y/Y Quarter Q/QAnnualized: Q x 4
    49. 49. Percentage Change Changenew number - old number old number
    50. 50. This Year - Last Year Last= 75This Year YearLast Year = 60Percentage Change?
    51. 51. 75 - 60 60 15 60.25 or 25%
    52. 52. How do you calculate GDP? GDP?
    53. 53. GDP =C = ConsumptionI = InvestmentG = GovernmentX = ExportsM = Imports
    54. 54. GDP =C + I + G + (X - M)
    55. 55. Consumption Spending by households ongoods and services,except new housing
    56. 56. Investment Spending on capitalequipment, inventories, and structures, including new housing
    57. 57. Government Spending on goods and services from local, state, andfederal governments.
    58. 58. Net Exports Exports minus imports
    59. 59. Net Exports Foreigners buying exports minus domestic residentsbuying foreign goods
    60. 60. What is GDP?C = 105I = 40G = 25E = 30I = 20
    61. 61. What is GDP?C = 105I = 40G = 25E = 30I = 20
    62. 62. GDP= C + I + G + (X - M)= 105 + 40 + 25 +(30-20)= 105 + 40 + 25 +10= 180

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