All in all today was a pretty good day, I can't really complain; although a few specific instances made this good Tuesday feel like a Monday, Monday is good for no one.
Professor Mesznik was back for lecture today. We discussed GDP and what affects it and Risk Diversification.
A country's GDP is the measure of what it can produce, both tangible and intangible goods. It is the measure of what the people in the country can do and what they spend their money on. A country's GDP or the GDP of anything is simply a lot of rates and statistics that make similar things more comparable. A GDP is not entirely accurate, just like the average income of people in a country, because any major high or low will affect the numbers.
Risk Diversification is when people try to diversify the risk of an investment and essentially make it less risky. For example, if someone would like to invest a good amount of money into the ownership of a boat, would they buy a boat and be the sole owner or invest in many boats and own a fraction of each of the many boats? The correct answer, in context with risk diversification, is to invest in many boats. If one boat sinks then not all of the money you invested is lost, you still have some assets (in the sense of boats).
Along with risk diversification is joint ownership and limited liability. With joint ownership not one person will take the fall and loose all of their money. People's willingness to invest in something increases when they understand what the worst loss to them would be if they were to loose anything in the investment. The ideal worst loss would be losing all you put into the investment, nothing more, this is limited liability.
In seminar we continued to discuss the concepts of supply and demand in the market and their relations to each other.
At Midday today, the two hour lunch period between classes, I had to make a difficult decision. I had to (this probably sounds silly because I didn't actually have to make this decision and what I'm deciding on is a luxury) decide between going on the RA trip to see Cinderella on Saturday or The Book of Mormon on Sunday. Today at Midday was the last day to pay for tickets. You may see my dilemma. The Cinderella ticket was $65 and I don't know how good the seats are, and The Book of Mormon ticket was $262 and the seats are in the seventh row. Mrs. L saw Cinderella the other day and loved it, whereas my uncle went back to see The Book of Mormon at least five times because he loved it so much. I eventually chose Cinderella, for obvious reasons. I'm just going to wait for The Book of Mormon to come back to San Francisco to see it with my family.
On a good note, the first papers for the class were handed back today and I received a 9.5 out of 10! I have also finished the homework (for the seminar) for Friday so unless Professor Mesznik assigns another essay tomorrow, I have no work over the Fourth of July!