1a. GDP Article
Definition: Gross Domestic Product (GDP) is the dollar value of all final goods and services
produced within a countrys borders in one year.
Summary: Bill Gates asserts that although GDP is the widely known way to measure a
1a. Money, Banking, and Financial Markets
Money: A medium of exchange that is usable for buying and selling goods.
o Example: A baker would not accept payment in bagels, however money is widely accepted
as a type of payment.
Stocks: Are ownership shares
1. Comparative Advantage
a. Puerto Rico has the absolute advantage in bananas, while Jamaica has the absolute
advantage in sugar cane. When it comes to absolute advantage, one only has to look at the
total number of products produced and whoever has more
1a. Determinants of Demand (AD = GDP = C + I + G + Xn)
Change in Consumer Spending: It is the purchases made by consumers. Even when the U.S. price
level is constant, domestic consumers may alter their purchases of U.S.-produced real output. If
1a. Scarcity is having unlimited wants, but limited resources. Since resources tend to be scarce, anyone
that uses the resource has to make a decision about how to use it. Your scarce resources force you to
make a choice and a trade-off producing one prod