Macro 3

2. Lecture 3
Macroeconomics

3. Opening
Prayer

4. Quiz
1.What contains more valuable informatuion,
the quantity or price
?
2.Where is the iPhone made?

5. Quizmaster
1. Ten Question
s
2. Three answers for each questio
n
3. Email to Connor at by 3:00p
m
cjh425@go.byuh.ed
u
4. One Extra Point on Exam

6. Where
is the
iPhone
made?

8. ARM Holdings
Wolfson
Marvel
Skyworks
CSR
Linear Technologies
NXP
National Semiconductor
Sharp
Samsung
Toshiba
Infineon
Broadcom
Numonyx
Micron
Dialog Semiconductor
Texas Instruments
STMicroelectronics
Silicon Storage
RF Microdevices
Cirrus Logic
U.S.
U.K.
Germany
Korea
Japan
Taiwan
China

9. Made on Earth

10. Design
Manufacturing Parts
Assembly
Packaging
Shipping
Marketing

12. What would you
have to be paid
to never use the
Internet again?
Then you must
be a millionaire

13. Only possible
because billions
of people have
learned to
cooperate with
each other
To serve one
another

14. The most
creative-destructive
device ever
invented

15. What does it cost to ship an iPhone from China to the U.S.
?
54
¢
450,000 iPhones cost about $242,000 to charte
r
Fuel accounting for more than half the expense. 44,700 gallons

16. What is worth the most?

17. Optimize
Tradeoffs

18. Tradeoffs
Mileage Safety
A 2001 National Academy of Sciences study estimated that the traffic
death toll attributable to past downsizing was approximately 2,000
lives per year.

19. Economic Models
Simplified Version of
Reality
Value in Prediction

20. Incentives Matter
Change Incentives
Change Behavior

21. Incentives are
more important
than goals

22. Consequences
matter more than
intentions

23. Unintended
Consequences

24. Macro Micro

25. U.S. Farmers
1800 - 90 percent

26. U.S. Farmers
1900 - 45 percent
Gasoline engines
replaced horses

27. U.S. Farmers
2012 - 2 percent

28. What happened to those 88 people?

29. Get wealthy
by making
others happy

30. Every person
has the power
to create
wealth

31. Because every
person has the
power to make
someone happy

34. Learning English
Access to the world’s
knowledge

35. Scriptures Economics
Spirit

36. 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 capitals of innovation
?
8. What is the source of wealth
?
9. What is the Magic Machine of economics
?
10. Will a hurricane increase GDP?

38. Magic Machine

41. Trade is a
Magic Machine

42. Inventor Entrepreneur

43. What if
Steve Jobs
had been
born in
Syria like
his father?

44. What is wealth?
Anything we value

45. What is capital?
Anything that can
create value

46. What is the most
important cultural
capital?
Trust