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Macro 6.pdf
Lecture 7
Macroeconomics
Opening
Prayer
Quizmaster
1. Ten Questions
2. Three answers for each question
3. Email to Connor at by 3:00pm
cjh425@go.byuh.edu
4. One Extra Point on Exam
Rule of 70s
Year to Double =
70 歎 Rate of
Growth
Pooleynesia grows at 7% a
year. Current GDP per
capita is $5,000.What will
GDP per capita be in 40
years?
Chapter 7
Chapter 9
The Capitals of

Innovation
Culture
Human Beings
Ideas
Physical Human Intellectual Financial
Inventions
Entrepreneurs Free Markets
Innovations
The Capitals of Innovation
What is Wealth?

Any thing we value
What is Economics?

The study of how
human beings create
value for one another
What is Capital?

Any thing we can use
to create value
Macro 6.pdf
Culture
Human Beings
The Capitals of Innovation
Macro 6.pdf
Cultural Capital?

How people treat
each other
Cultural Capital is
determined by the
worldview of leaders
Macro 6.pdf
Property Rights

Rule of Law
Macro 6.pdf
Deidre McCloskey

Bourgeois Values

"Sweet Talk"

"Have a Go"
Culture
Human Beings
Ideas
The Capitals of Innovation
A thought about how
to potentially create
new value
Idea
Culture
Human Beings
Ideas
The Capitals of Innovation
Physical
atoms and energy

natural resources

time

buildings

equipment

things than make things
Physical Capital
Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human
trust

health

skills 

knowledge

personality

relationships
Human Capital
Integrity

Competence
Trust
I look for three things in
hiring people. 
The first is personal integrity,
the second is intelligence,
and the third is a high energy
level. 
But if you dont have the
first, the other two will kill
you
Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual
knowledge

technology

methods 

patents
Intellectual Capital
over 

10,000,000 

today
Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial
Money put at risk
over time
Financial Capital
Macro 6.pdf
money put at risk over time

money is time

savers and borrowers 

(1+r)n

insurance油油 

limited liability corporations

double entry accounting
Financial Capital
Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial
Inventions
Proof of an Idea

Thought to reality
Invention
Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial
Inventions
Entrepreneurs
Risk Takers

Value

Inventions to Innovations

Freedom to Discover

Learning

Failure
Entrepreneurs
Inventor Entrepreneur
Thomas Edison

Inventor and
Entrepreneur

Very Rare
Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial
Inventions
Entrepreneurs Free Markets
Where buyers and
sellers discover value
Free Markets
Solve each other's
problems with a price
system
Free Markets
Information system

that creates

incentives
Price System
Market-Successful
Invention

Profitable Invention
Innovation
All Trades 

Have One Price 

And Two Values
Culture
Human Beings
Ideas
Physical Human Intellectual Financial
Inventions
Entrepreneurs Free Markets
Innovations
The Capitals of Innovation
We create value by
continuously innovating
our capitals

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