1 / 14

Warm Up 10/1/13

Warm Up 10/1/13. What do you think is the richest country in the world today? How do you think economists should measure a country’s wealth?. We will take some notes today. Finished with Microeconomics. Microeconomics – study of individuals and the economy

amorina-curt
Download Presentation

Warm Up 10/1/13

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Warm Up 10/1/13 What do you think is the richest country in the world today? How do you think economists should measure a country’s wealth? We will take some notes today

  2. Finished with Microeconomics • Microeconomics – study of individuals and the economy • Macroeconomics – study of large organizations and countries and the economy • Finance – study of investment and credit

  3. Gross Domestic Product • A measure of a country’s economy

  4. GDP • All consumer spending within a country in a certain year, month or quarter

  5. GDP • All private investment within a country in a certain year, month or quarter • IOW: (saving)

  6. GDP • All net exports from a country in a certain year, month or quarter • Exports = goods shipped to other countries • Imports = goods brought into a country from another country

  7. GDP • All government spending in a country in a certain year, month or quarter • Examples: education, military, welfare, social security, roads, healthcare, etc

  8. GDP • What economic activity did I leave out? • 2 ways GDP might be misleading?

  9. GDP per capita • Population measuring: • Divide GDP by population

  10. GDP Calculation Y = C+ I + E + G where Y = GDP C = Consumer Spending I = Investment E = Exports -Imports G = Government Spending

  11. United States GDP 2003 Y = C+ I + E + G $$ in Billions Consumer Spending = $7605 Investment = $1606 Exports = $1021 Imports = $1508 Government Spending = $2017 $7605+ 1606 + (1021-1508) + 2017 = $10,741 (2003)

  12. Netherlands GDP 2003 Y = C+ I + E + G $$ in Billions Consumer Spending = $400 Investment = $104 Exports = $339 Imports = $305 Government Spending = $131 $400+ 104 + (339-305) + 131 = $669 (2003) Per capita: 669,000,000,000/16,000,000 = $41,812.50 16 million Dutch citizens • 3. Calculate the GDP for the Netherlands • Calculate the GDP/capita • How can GDP be a limited measurement?

More Related