Macro 21

2. Macroeconomics

3. Opening
Prayer

4. Quiz Master

6. Arbitraging
1. Pick a product and review the prices in both countries
2. Are the prices different than the exchange rates?
3. Buy currency in the low priced country
4. Buy the product in the low priced country
5. Move to the high priced country
6. Sell in the high priced country

8. 1.00 Dollar to 51.91 Peso
USD to PHP
$ to ₱
$ 50.00
x
51.91
=
₱ 2,595
₱ 1,973
÷
51.91
=
$ 38.00

9. $38
$40 $40
Supply
More Supply
Demand
More
Demand
Price
Quantity
Price
Quantity
Demand
Supply
$50
₱ 1,973

10. Cost?
Arbitraging
1. Traded $38 for ₱ 1,973
2. Bought shoes for ₱ 1,973
3. Shipped to U.S.
4. Sold in U.S. for $50
5. Traded $38 for $50
6. Made $12 on $38
7. Made 31 percent profit
8. Repeat

11. 1. Dollar to Won (KRW) rate is 1 to 1,176
2. Cell Phone in U.S. is $600
3. Same Cell Phone in South Korea is 600,000
4. Cost to ship is $5
5. What should you do and how much will you
make? Dollars and percent?

12. Why
Will Replace College

13. 1997 2020 $40,000
Increased by
167%
You get 0.375
of a degree
$148
Decreased by 99.0%
You get 100 TVs
Large-Screen TV
$15,000
College Degree
$15,000
In the past 23
years a college
degree has
become 267 times
more expensive
relative to TVs
100 ÷ .375 = 267

14. 1997
2020
Large-Screen TV
1997 2020
Nominal Price $15,000 $148
Average Hourly
Income
$12.50 $24.60
Time Price
in Hours
1,200 6
Time Price
Declined by 99.5%
Resource Abundance Multiplier: 200
Percentage Change in Personal
Resource Abundance: 19,900 percent

15. 1980 2018

16. Time Price Database
1980 2018

17. 1980 2018
$14.99
$22.95
Change
Reduced
by 80%
$22.46
Per Hour
$6.85
Per Hour
3.35 Hours 0.67 Hours
5x

18. 1980 2018
$71.98
$459.95
Change
Reduced
by 95.2%
$22.46
Per Hour
$6.85
Per Hour
67.1 Hours 3.2 Hours
21x

19. 1980 2018
$62.89
$459.95
Change
Reduced
by 95.8%
$22.46
Per Hour
$6.85
Per Hour
67.1 Hours 2.8 Hours 24x

20. 1980 2018
$36.80
$399.85
Change
Reduced
by 97.2%
$22.46
Per Hour
$6.85
Per Hour
58.4 Hours 1.6 Hours 36x

21. 5x
21x
24x
36x
1980 2018

22. 2018 8.3 hours 1 day
1980 196 hours 24 days
Reduced

23. But to make use of it, this
knowledge has to be put
back together through
organizations and markets.
Cesar Hidalgo

24. Climate-Related Deaths
1920-2021
1920:
248,718 deaths
per billion
2020:
778 deaths
per billion
99.687 percent
decrease

25. Economics
Costs versus Benefits

26. Saves
167,000
lives

27. Economics
The study of how human
beings create value for one
another

28. Chapter 21
Public Choice
Who decides?

30. Individual, Groups, Dictator
Choose,Vote, Impose
Choices

31. The reason there will be no change is because
the people who stand to lose from change
have all the power. And the people who stand
to gain from change have none of the power.
-Machiavelli

33. Producers, Consumers, and
Entrepreneurs
Politicians and Bureaucrats
Incentives

34. Personalize the benefits
Socialize the costs
Private Choice
Public Choice

35. Special Interests
or
General Public
Who is more informed?

36. Learning is discovering and
creating knowledge
Knowledge and Power

37. The person with the
knowledge should have the
power to make the decision
Knowledge and Power

38. Dictator
Majority
Individual
Knowledge and Power

39. Benefits of Learning
vs.
Costs of Learning
Rational Ignorance

40. Help me and
I will help you
Log Rolling

41. Economics
and the Gospel

43. "Happiness is the object and
design of our existence; and will
be the end thereof, if we pursue
the path that leads to it; and this
path is virtue, uprightness,
faithfulness, holiness, and keeping
all the commandments of God.
"In obedience there is joy and
peace . . . and as God has
designed our happiness . . . , He
never has — He never will . . .
give a commandment to His
people that is not calculated in
its nature to promote that
happiness which He has
designed."

44. For the earth is full, and there is enough and
to spare; yea, I prepared all things, and have
given unto the children of men to be agents
unto themselves.
- D&C 104:17

45. Economics Business
Psychology
Political Science
History
Mathematics
Philosophy

46. Minor - 5 classes
Concentration - 6 classes
Economics

47. Minor Concentration
ECON 200 Microeconomics
ECON 201 Macroeconomics
ECON 350 Development Economics
ECON 353 Money, Banking, and Business
ECON 360 International Economics
Electives - Pick 1 from 4 options