Auto Bailout Debate

Well it is that time again; time for the Federal Government to fly in on the proverbial sled and deliver toys to the good children of America. And by toys, I mean millions of dollars. And by good children, I mean bankrupt corporations.

The question is do we really need to go down this road again? Is it the job of the Federal Government to bail out the Big Three Automakers? In answering this question, consider the following points:

1. What are the opportunity costs of NOT bailing out the automakers?
2. What message are we sending to other businesses by going through with the bailout?
3. Does this represent a fundamental change in our economic system?
4. Why should or shouldn't the government bail out the automakers?

Some links to help in your investigation:

http://www.nytimes.com/2008/11/20/business/20auto.html?_r=1&ref=automobiles

http://www.foxnews.com/story/0,2933,455286,00.html

http://www.forbes.com/opinions/2008/11/19/gm-economy-autos-oped-cx_bm_1119mcgarvie.html

http://www.reuters.com/article/GCA-autos/idUSTRE4AJ7YZ20081120

http://www.google.com/hostednews/ap/article/ALeqM5g9_YzIcykt_QqWPWLuCciw2ugCQQD94IHS9G0

GDP Review

What is GDP? How is GDP calculated?

GDP= ______+ ______ + _______ + ( ___ - ____ )

What does GDP not measure? (What is excluded and not taken into account)

Why is GDP not a good indicator of the standard of living in country?

What is GNP, and how is it different than GDP?

What is the difference between GDP and Real GDP?

What is the PI? What is measured by PI?

What is CPI? How/Why do we measure it?

What is the difference between planned and unplanned investment?