Venture Capital Investment Slips in first quarter

http://www.sltrib.com/ci_5757242

In this article, the amount of venture capital investment in Utah has dropped significantly, down nearly 60% in comparison to the first quarter in 2006. However, the article claims that a good level of investment is from 20 million to 60 million dollars and that the first quarter of 2006 was so high because of the abnormal amount of venture capital investment. Venture captial investments are early stage investments where the chances of success are uncertain.

The low investment in venture capital means that the GDP for the first quarter in Utah is lower because a 60% decrease in any form of investment will ineveitably decrease GDP by a noticeable amount. Also a decrease in investment decreases the injection of money into the cycle therefore decreasing the total money spent, whether it is in consumption or government spending. This could be signs of a recession because of the contraction of buisness activity within the economy. This in fact may be the trough of the business cycle because the level of investment is at the lowest point that is considered a good level of investment. Therefore, next year in the first quarter of 2008 we should see an increase in venture capital investment because it should be the recovery part of the buisness cycle. If it does not recover, then it may be considered a depression if this decline in investment continues for too long.

Discussion starters : chapter 21

1. The GDP can tell the CIA that what the country is producing and how much the country is spending. This is a quantitative measure of the well-being of the populace and can tell how much each individual can poosibly spend and therefore can indicate the possible potential happiness of that individual. However, the GDP does not say how the wealth is distributed among the people, so one person could have all the money and everyone else could have none. Economically, this would be bad for GDP because it would decrease if GDP were calculated by expenditures because no matter how much money a single person has, a thousand people can spend alot more money than one person can. Also, GDP does not account for the "cash market" where services are not performed by professionals but rather under the table. Having your neighbour mow your lawn in exchange for you fixing his bike is also not included in GDP.

2. If in some countries, drug are legal, then they are counted in GDP but in others, if drugs are illegal then they are not counted. Therefore, because of this difference in legality the GDP for both countries will seem uneven. The country that has legal drugs will have a relatively higher GDP then one with illegal drugs because even though the drugs are still in the country, they are not counted because they are illegal, which lowers the country's GDP. The prohibition of alcohol and the hunting of endangered species may also confuse comparisons of GDP between countries.

3.

4. A) out B) out C) in D) in E) in F) in

5. Leisure time could be included as a measure of social welfare because it provides oppurtunities for happiness for the worker. Leisure time could be measured by the wage of the worker or his contribution to GDP because if he did not have leisure time then that time could have been spent working and contributing to GDP

London is ranked 6th highest GDP for a City in the World.

London to Rise From Sixth to Fourth Place in Global City GDP Rankings by 2020

Tuesday , 20 March 2007

http://www.turkishweekly.net/news.php?id=43577

London has been ranked 6th richest city in the world in terms behind New York, Los Angeles, Chicago, Paris and Tokyo. However, because London's growth is faster than Chicago's or Paris' it is said that it will overtake them by the year 2020. The faster growth will cause the average person to be earning more so therefore the GDP per capita will also increase. Other cities that are projected to increase in standings are from countries with high levels of growth.

Pollution Permits to regulate greenhouse gases

Short Run and Long Run Average Total Cost Curves For Natural Gas Producers

Market of Natural Gas Subsidized to Increase Supply

MSC/MSB cost curves for negative externalities