1. Lesson 1 - My Country Does What? Concepts: Standard of Living Gross Domestic Product (GDP) GDP per Capita Purchasing Power Parity

2. Objectives - Lesson 1 Identify roles & responsibilities Objectives of IES Define GDP per Capita Utilize GDP per Capita as a measure of living standards

3. Your Role = Economic Advisors Must know a great deal about your country Economic, social and political structures What would be the consequences for having incomplete or incorrect information?

4. Consequences of Incorrect Information Missed opportunities Wrong conclusions Poor results Closed-minded attitude

5. Research Quality of research may affect: Opinions & beliefs Strategic plan Your perceptions about how the world works

6. Tools & Resources Player’s Guide: Details about simulation Project assignments IES Bulletin Board Team members IES Website: www.frbsf.org/education/ Links to sites for research

7. “STANDARD OF LIVING” WHAT DOES THIS PHRASE MEAN? MAY REPRESENT MANY DIFFERENT THINGS NEED CONSISTENT DEFINITION

8. “STANDARD OF LIVING”

9. Gross Domestic Product GDP Measure to represent standard of living for a country Amount of economic activity in a country is reflected in GDP

10. Gross Domestic Product - GDP Definition: Market value of all goods & services produced within a country over a specific period of time (1 year)

11. GDP Example US & Canada GDP 2007 US $13.8 trillion Canada $1.3 trillion US economy is larger based on dollar amounts How do living standards compare? Why is US economy larger?

12. GDP Per Capita (Per Person) Definition: GDP divided by the population of the country = An average $$ value of goods & services produced by each person in the country

13. GDP Example US & Canada 2007 Canada GDP $1.3 trillion divided by Canada population 33 million = $39,195 United States GDP $13.8 trillion divided by United States population 300 million = $45,845 Dollar value is goods & services produced on average by each person

14. GDP Per Capita (Per Person) Widely used measure of living standards Straightforward to calculate Wondering about your country & its standard of living?

15. Purchasing Power Parity (PPP) Costs of goods & services equalized across countries Calculation complicated Comparisons between countries = GDP PPP Comparisons within a country = GDP

16. Mini-Summit Participant Responsibilities: Understand objectives, rules, new concepts, vocabulary & resources How? Take notes – Cornell Review notes Study new vocabulary & concepts

17. More about the Mini-Summit Opportunity to develop Soft Skills: Teamwork Leadership Project Management Communication Negotiation And FUN, FUN, FUN!!!