Next Exam

Exam 3Tuesday December 16

Chapters 12-18

Microeconomics Lecture 18

Wealth Creation

Innovation

WageLevel

Quantityof Labor

WageLevel

Quantityof Labor

WageLevel

Quantityof Labor

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

SchoolTeachers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

SchoolTeachers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

SchoolTeachers

$36 million135 million SAR

WageLevel

Quantityof Labor

ProfessionalSoccerPlayers

SchoolTeachers

$36 million135 million SAR

1800 2014 Change

Population one billion seven billion 7x

Life Expectancy 26 years 71 years 45 +

GDP Per Capita Per Day $3 $30 10 x

ideas

ideas

inventions

ideas

inventions

ideas

inventions

innovations

ideas

inventions

innovations

ideas

inventions

innovations

3% becomeinnovations

Idea

Idea

Idea Invention

Idea InventionInventor

Idea InventionInventor

Steve Wozinac

Idea InventionInventor

Steve Wozinac

Idea Invention InnovationInventor

Steve Wozinac

Idea Invention InnovationInventor Entrepreneur

Steve Wozinac

Idea Invention InnovationInventor Entrepreneur

Steve Wozinac

Steve Jobs

Ideas - Inventions - Innovations

Ideas - Inventions - Innovations

Everyone has ideas

More people equal more ideas

Inventor

Inventor

turns an idea into reality

Entrepreneur

Entrepreneur

turns an invention into successful product

Capitalism isn’t about competition.

Capitalism is about innovation

Entrepreneur

Culture

Entrepreneur

Human

Culture

Entrepreneur

Physical

Human

Culture

Entrepreneur

Financial Physical

Human

Culture

Entrepreneur

Intellectual

Financial Physical

Human

Culture

Entrepreneur

Intellectual

Financial Physical

Human

Culture

Entrepreneur

trust knowledge skills personality health relationships

Intellectual

Financial Physical

Human

Culture

Entrepreneur

trust knowledge skills personality health relationships

natural resources time buildings equipmentthings than make things

Intellectual

Financial Physical

Human

Culture

Entrepreneur

trust knowledge skills personality health relationships

natural resources time buildings equipmentthings than make things

money and risksavers and borrowers time is money

(1+r)n

insurance   limited liability corporations

Intellectual

Financial Physical

Human

Culture

Entrepreneur

trust knowledge skills personality health relationships

natural resources time buildings equipmentthings than make things

money and risksavers and borrowers time is money

(1+r)n

insurance   limited liability corporations

ideas technologymethods

Five Ages

Five Ages

Hunter - GatherAgricultureIndustrial

InformationMobile

Dr. GaleNeighborhood

Idaho USA1877

Dr. GaleNeighborhood

Hunter-Gatherer AgeMuscle PowerStrongest Won

Idaho USA1877

Dr. GaleNeighborhood

Agricultural AgeAnimal Strength

Industrial AgeWaterWindSteam

Oil

Information Age

StoreProcessTransmitNetwork

Information Age

StoreProcessTransmitNetwork

WiredTelephonesComputers

Information Age

Internet • Network • Fixed Points

The Four Information Age Laws

The Four Information Age Laws

MooreSegateGilder

Metcalfe

Moore’s Law

Moore’s Law

computer power doubles every 18

months

Segate's Law

Segate's Law

storage doubles every 12 months

Gilder’s Law

Gilder’s Law

bandwidth doubles every 6 months

Metcalfe’s Law

Metcalfe’s Law

networks value =

number of members squared

Information Age Laws

Information Age LawsNine Years

2023

Computers 64 xStorage 512 x

Bandwidth 262,144 x7 billion internet users

Mobile Age

Wireless Networks

Mobile Age

Wireless Networks

Mobile Age

Wireless Networks

Mobile Age

Five Ages

HunterGatherer

Five Ages

HunterGatherer Agricultural

Five Ages

HunterGatherer Agricultural Industrial

Five Ages

HunterGatherer Agricultural Industrial Information

Five Ages

HunterGatherer Agricultural Industrial Information

Five Ages

Mobile

Technology

Technology

How we make things

Technology

How we make things

Leverage Intelligence

Technology

How we make things

Leverage Intelligence

Making things smarter

Technology

How we make things

Leverage Intelligence

Making things smarter

Smarter way to make

Five Ages

Five Ages

More EnergyAtoms always existed

Way we organize atomsHarness energy

Apply intelligence

Future Ages

Future Ages

Making things smarter and smarter

More bits per atom

Cancer Test

Cancer Test

3 cents - 5 minutes168 x faster

26,667 less expensive400 x more sensitive

Cancer Test

Cancer Test

3 cents - 5 minutes$800 - 14 hours

400 x more sensitive

1. What are the three I’s ?2. What are the five capitals?3. What are the five economic ages?4. What are the four laws of the information age?