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Macro 3

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Gale Pooley
Gale Pooley

Macro 3

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Macroeconomics Lecture 3 Micro Review
Questions?
Econ Lab Wednesdays 9pm - 11pm GCB 150 Mondays 4pm - 6pm Stake Center Relief Society Room
10 Questions 1. What is GDP? 2. What is GDP per Capita? 3. What is the Average GDP per capita on earth? 4. What is the GDP per capita in your country? 5. What is innovation? 6. Are all inventors also entrepreneurs? 7. What are the six capitals of innovation? 8. What is the source of wealth? 9. What is the Magic Machine of economics? 10. Will a hurricane increase GDP?
Magic Machine
Trade is a Magic Machine
Science Hard Soft
Most people Most of the time Economics is a Soft Science
Ideas Inventions Innovations
Ideas - Everybody Inventions - Inventors Innovations - Entrepreneurs
Innovations are market-tested successful inventions
ideas inventions innovations 3%
Six Capitals of Innovation A framework for understanding prosperity and poverty
Intellectual Financial Physical Human Culture Entrepreneur
Intellectual Financial Physical Human Culture Entrepreneur
Entrepreneurial Capital Make innovations out of inventions
arbitrageurs perceivers synthesizers value creators converter Entrepreneurial Capital
Inventor Entrepreneur
What if Steve Jobs had been born in Syria like his father?
Thomas Edison Inventor and Entrepreneur Very Rare
Human Capital trust health trust skills knowledge personality relationships
Trust Integrity Competence
I look for three things in hiring people. The first is personal integrity, the second is intelligence, and the third is a high energy level. But if you don’t have the first, the other two will kill you. Warren Buffett, CEO, Berkshire Hathaway
Physical Capital natural resources time buildings equipment things than make things
Physical Capital natural resources renewable non-renewable
Financial Capital money and risk savers and borrowers time is money (1+r)n insurance   limited liability double entry accounting
Intellectual Capital ideas inventions technology methods
around 8,000,000 today
Cultural Capital Determines the relationship entrepreneurs have with capital
Cultural Capital values institutions worldview mobility
Cultural Capital the incentives to innovate How people treat each other
Macro 3

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Macro 3