Malcom Gladwell

Malcom Gladwell is a very intellectual & talented stand up. His analogy with spaghetti sauce exemplifies how choices are made between two different companies. If two prices are close, you choose which one enlightens you more, you choose which one appeals to your wants, and which one you prefer. Monopolistic competition compete with more than just price, they also compete to acquire more customers than the other. And for the record, I personally prefer Ragu, I like my spaghetti sauce light and liquid.

Faulty Indicator: GDP

GDP is more vague then usual.

GNP is GDP + total capital gains from foreign investment - income earned by foreign nationals domestically.

They are both important measures. GDP gives an overall snapshot of the country's economic position, whereas GNP is an indicator of domestic contribution to GDP relative to foreign investment/income.

Calculating GDP

Y = C + I + E + G


Y = GDP

GDP is all goods and services produced deomstically. To calculate GDP all you need to do is add all the components of the economy that are involved with goods and services produced.

C = Consumer Spending

Most goods and services are bought by consumers, making C a variable for how much they spend.

I = Investment made by industry

Investments in this GDP formula are not the investments you normally think of. When calculating the GDP, investment means the purchases made by industry in new productive facilities, or, the process of "buying new capital and putting it to use" (Gambs, John, Economics and Man, 1968, p. 168).

E = Excess of Exports over Imports

This shows how much an economy makes of a good/service and how they much they distribute it throughout the world. It also compares to how much that economy buys goods/services from other economies.

G = Government Spending

This is when the government spends tax money for goods and services for society. Tax isn't "lost", since the government uses that money for public services and goods.

Four Rules for GDP

1. Good/service must be made in your country for it to count in the GDP.


2. Uses local currency for the output of that country.



3. The GDP is calculated for a specific amount of time, ie: years, quarters.

React to Reading: Macro Economics

Macroeconomics is about the entire economy as a whole. It doesn't just have to mean one country's individual economy, it means the whole world's economy, or even just a whole state's economy.

What interests me about this topic is to see how people deal with their economy and which economies can last and why. Also how money is earned and the different structures within varying economies.

Three things I hope to learn:

1. Which economies are the most successful
2. How the geographical economy is doing
3. China's increasing economy

TweenTribute: "Elevating Utility to Learn"

Technology evolves throughout time. Technology is out there to make each and every day easier and simpler for the user. Technology has granted students and teachers the ability to do things unimaginable. Technology makes presentations look elegant and neat. Technology is what gets to long distances. Technology lets us communicate. Technology keeps us warm through winter chills and cool on summer nights. Technology captures memories, stores them too. Technology creates openings and advantages. Technology is embraced by some, and is banned by others. Technology enlightens one’s mind.  Technology is progressing and elevating to new heights. Technology is needed to survive.

The 4 Different Kinds of Monopolies

The four kinds of monopolies are: Natural, Government, Geographical, and Technlogical.

Examples:

Natural: Telephone lines or Airlines.
            (Hard to start own company)


Government: Postal System.
                  (Government created monopoly, competition is prohibited by law)

Geographical: Gas station in the middle of the Sahara desert
                   (Location effects potential profit, meaning people must go there for good/service)

Technological: Actual Transformers
                    (Company that makes something innovative has copyright or form of patent, 
                     they have a legal monopoly over all other competitors.)

Flip Card Review!

Click the link below to get to notecards about U.S. Antitrust Legislation
http://www.studystack.com/flashcard-518936

can also play games with those note cards!

Breakin' up Sony

If Sony was broken up, many different kinds of products and people would suffer. First off, there wouldn't be a Playstation Network or a continuation on PS3 products. This would help me because no more good games would be exclusive to the PS3 only, and the companies that makes those games would most likely transfer over to Microsoft. Also, I am one of the two people that have an Xbox 360 in my family while all my other cousins and uncles have a PS3. Also, there would be less competition for TV's, monitors, and appliances, making it a lot easier for my mom to choose between stuff. Also, any additional research that Sony had and other companies didn't will be halted and now there's one less company that's "on top of the game".

Items & Their Market Structure

The North Face: http://prezi.com/-rfna6oubgpo/the-north-face/

Glasses: They are monopolistic competition because some brands may be more expensive than the other because of style/reputation. However, they all serve the same purpose, which is to help you see better.

Call of Duty - Black Ops: Call of Duty can be considered an oligopoly. Reason being that there are other FPS (First person shooter) games for similar prices like Medal of Honor, Halo: Reach, Battlefield Bad Company 2, Fallout: New Vegas, etc.

The 4 Market Structures

Visual representation comparing the 4 Market structures. (Used Prezi)

http://prezi.com/usovyh2epuzo/comparing-4-market-structures/

Intro

Yo my name is Carlo. I'm a Junior in high school taking Economics class. My teacher is Mr. Campbell and we have to create a blog about Markets. Yeah he's a computer hog.