1. Short Quiz1. Which type of taxes should be favored by wealthier incomes? A. Progressive taxes B. Regressive taxes C. Gift taxes D. Proportional taxes E. Property taxes 2. Which part of our government is tasked with preventing the free rider problem? A. Homeland Security B. Antitrust law C. State governments D. Internal Revenue Service E. US Park Service 3. Which of the following would be counted as part of the GDP calculation of a country? A. Used clothing B. Stock purchases C. hair cuts D. social security payments E. interest on a student loan

2. Questions 1. Calculate the GDP of Mexico in 2009, where exports were $223.6 billion, imports were $234.6 billion, consumers spent $969 billion, $296 billion was invested in business, and government spent $229 billion. 2. Is Mexico a net exporter or net importer? 3. If Costa Ricas GDP is $48 billion, which country has a larger economy? 4. How many students are in class today? 5. Do you think the world is getting richer or poorer? 3. GDP What economic activity did I leave out? Transfer payments Financial transactions Used items Black market 2 ways GDP might be misleading? 4. US GDP history by part 5. Why not just look at GDP? 6. Per capita statistics Latin for per each head IOW: Per person X X per capta = # of people On your BR: Calculate cellphones per capita Bank accounts per capita Household vehicles per capita 7. Source: MSN 8. GDP per capita Adjust for different population Divide GDP by populationGDP $ # of people 9. 2009-2012 Top 24 GDP richest countries 10. Mexico vs. Costa RicaGDP: $1.483 trillion ($1483 billion) Population: 111 million GDP per capita: $13,360GDP: $48 billion Population: 4.2 million GDP per capita: $11,480 11. China vs. GermanyGDP: $6 trillion ($6,000 billion) Population: 1.3 billion 1,300 million GDP per capita: $4,600GDP: $3.6 trillion ($3,600 billion) Population: 81 million .081 billion GDP per capita: $38,000 12. Show video clip In the last 200 years, describe world GDP per capita. Do you think this will continue for another 200 years? Explain. 13. GDP consumption hunter http://www.reffonomics.com/TRB/chapter21/ HunterLessons/consumptionhunter3.swf http://www.reffonomics.com/TRB/chapter21/ HunterLessons/notincludedinGDP3.swf 14. Assignment Create an assignment for the regular students to do #1 12 realistic scenarios for students to choose the component. 3 for each part of GDP. For example: 1965 US creates Medicare (govt spending) #2 2 GDP problems (C + I + G + X) #3 Why is GDP per capita a better measure of wealth than GDP?