1. Complete the sentence…. Getting a good education is important to me because…

2. GDP GDP is the sum of goods and services produced in an economy during a period of time (usually a year). The Gross Domestic Product measures the value of economic activity within a country. GDP

3. Real Economic Growth is measured by calculating the increase in the GDP from one year to the next GDP

4. Standard of Living the degree of wealth and material comfort available to a person or community.

5. What is an Investment? Investment is putting money into something with the hope of a good outcome

7. Investment in Physical Capital Physical Capital-factories, machinery, and technology By investing in capital, you increase production, improve company, increase GDP.

8. Investment in Human Capital (investing in education and training of the labor force) By investing in human capital, you increase production, improve company, increase GDP.

9. Literacy Rate refers to the percentage of people in a country who can adequately read or write. Literacy Rate refers to the percentage of people in a country who can adequately read or write.

10. Growth of Countries in Europe

11. Entrepreneur One who innovates and takes risks in developing a product or business.

12. Oprah Winfrey

13. Steve Jobs

14. How does Entrepreneurship Influence Economic Growth? Entrepreneurship creates jobs and reduces unemployment (People having jobs) Entrepreneurship creates jobs and reduces unemployment (People having jobs) Encourages people to take risks, and in doing so, they’ve created better healthcare, education, & welfare programs Encourages people to take risks, and in doing so, they’ve created better healthcare, education, & welfare programs The more entrepreneurs a country has, the higher the country’s GDP will be… The more entrepreneurs a country has, the higher the country’s GDP will be…

15. Natural Resource Any product that comes from nature Examples: – Oil, coal, natural gas – Vegetables and fruits – Cotton – Sheep and cows – Gold and silver

16. Natural Resources United Kingdom Coal, oil, and gas Germany Rivers, forests, coal and Iron ore Russia *Resources located in remote areas * Hard to develop due to climate and transportation

17. How do Natural Resources Influence Economic Growth? Countries that have a lot of natural resources are able to use them to produce goods & services cheaper than a country that has to import natural resources. Source of income when exported. Fuel for a countries industries. Countries that have a lot of natural resources are able to use them to produce goods & services cheaper than a country that has to import natural resources. Source of income when exported. Fuel for a countries industries.

18. Standard of Living The higher a country’s GDP = a better standard of living for the people within the country In order for a country to have an increasing GDP, it must invest in human capital through education & training, and it must produce goods that have value to be sold within the country or exported.

19. United Kingdom Human Capital Investment - Literacy Rate 99% Capital Investment— 16.7% of GDP (2008 est.) Real economic growth rate (2007- 08):.7%

20. Germany Human Capital Investment- Literacy Rate-99% Capital Investment— 18.9% of GDP (2008 est.) Real economic growth rate (2007- 08): 1.3%

21. Russia Human Capital Investment- Literacy Rate-99.4% Capital Investment— 24.7% of GDP (2007 est.) Real economic growth rate (2008): 6%

22. Ticket out the Door!!! If a country increases Human Capital and Capital, what is the impact on Gross Domestic Product (GDP)?