50:50
Welcome to
Who Wants to
be a Millionaire
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Another
Presentation
© 2000 - All rights Reserved
markedamon@hotmail.com
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
What is Gross Domestic
Product (GDP)?
Answer: A
50:50
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
A: market value of all
B: value of
goods/services produced
within a country during a
period of time
goods/services
produce per person in
a country
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Two main ways to
measure GDP are?
Answer: D
50:50
A: Circular Flow and
Money Payments
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
B: GDP per capita
and Real GDP
C: Infant Mortality
D: Income Approach and
and Life Expectancy
Expenditure Approach
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
_______ is the
dollar value of GDP
expressed in
current dollars,
ignores inflation
This
measurement is
adjusted for
inflation and is
calculated using:
nominal GDP
X 100
P
Answer: C
50:50
A: Real GDP, Real GDP per
capita
C: Nominal GDP, Real GDP
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
B: Currency, GDP
D: Expenses,
Population rate
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Gross Domestic
Product is calculated
by GDP= ________
Answer: A
50:50
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
A: GDP= C + I + G + (X-M)
B: GDP= B + Gov + S + X- (-M)
C: GDP= C + i + G - (X+M)
D: GDP= (X-M) + C + i + S
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Definition of Income
Approach measured
by wages, rent,
interest, and profit
Answer: C
50:50
A: spending based GDP
C: measure of total income
earned by the factors of
production
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
B: measures amount of
money people have
D: is a calculation for
inflation
© Mark E. Damon - All Rights Reserved
the $1,000
Milestone!
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
At the end of the year a flour milling
firm finds that its inventories grain
and flour are $10 000 above the
amounts of its inventories at the
beginning of the year.
Answer: B
50:50
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
A: Is counted as consumption
B: Is counted as investment
C: Is counted as government
D: Not counted in GDP
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
The government increases
its defense expenditures
by $1 000 000 000
Answer: D
50:50
A: Is counted as consumption
C: Is counted as investment
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
B: Not counted in GDP
D: Is counted as government
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Define Expenditure
Approach
Hint: C + I + G + (X-M)
Answer: B
50:50
A: is a form of GCP
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
B: measure the total amount
spent in buying the economies
output
C: only includes all
D: is the money spent
exports and imports
on household supplies
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Three economic goals of
the Canadian Government
and their indicators are?
Hint: ¾ are correct
Answer: A, C, and D
50:50
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
A: Growth of output indicated
B: Low taxes indicated by
by GDP
expansionary policy
C: Job creation indicated
by unemployment and
employment rates
D: Price Stability indicated
by CPI
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
GDP as a measure of
Economic well-being, may
not adequately indicate
how well off a society as…
Answer: A and B
50:50
A:
Size of population: real GDP
doesn’t represent the number of
people that share in the total output
of good/services
Distribution of Income: may no be
fair even when real GDP per capita
is high
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
B:
Non-marketed goods/services: many
goods/service do not get counted in GDP
because they are not sold
The Underground economy is neither
recorded by statistcians nor observed for
tax purposes
© Mark E. Damon - All Rights Reserved
the $32,000
Milestone!
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
_______ is
income received
by the owners of
the factors of
production
Answer: B
50:50
_______ is
personal
income minus
personal taxes
and personal
transfers to the
government
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
A: Personal Income,
B: Personal Income,
Income
Personal Disposable Income
C: Money per capita,
Disposable Income
D: Income,
Distribution of Income
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
The concept of the
Circular Flow diagram
shows that
Answer: A
50:50
A:
total expenditure on the
economy's output = total income
earned producing it
C: total expenditure on the
economy's output > total
income earned producing it
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
B: total expenditure on the
economy's output < total
income earned producing it
D: GDP is not flow
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
real GDP yr2
– real GDP yr1
real GDP yr1
Answer: D
50:50
X 100
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
A: real GDP
B: GDP stability rate
C: real GDP per capital
D: real GDP growth rate
(output growth)
© Mark E. Damon - All Rights Reserved
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Given:
nominal GDP: $5 000
Price index: 125
Population: 11
Calculate real GDP per capita
Hint: real GDP
population
Answer: B
50:50
A: $4 000
B: $363.63
C: $366.67
D: $333.66
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
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1
$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
Determine the GDP
component (C, G, or I)
for each box
50:50
Compact Discs C
Factory
I
Cruise Missile
G
Candy Bars
C
Books
C
Family Minivan C
Apples
C
Manicures
C
Butter
C
Bread
C
Federal Courts
G
New Roads G
Police Protection G
Construction
Equipment I
Increase in toy
inventory
I
Concerts C
Education G
National Parks
G
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$1 Million
$500,000
$250,000
$125,000
$64,000
$32,000
$16,000
$8,000
$4,000
$2,000
$1,000
$500
$300
$200
$100
© Mark E. Damon - All Rights Reserved
YOU WIN $1
MILLION DOLLARS!