Standard SSEF 6 a Define productivity SSEF 3

Standard • SSEF 6 a- Define productivity • SSEF 3 a-Give examples of Specialization

Economic growth • Our economy grows when the nation’s output of goods and services increases overtime. • Productivity is the most important factor in growth.

Profit • Producers want to make as much money as possible by selling the goods and services they produce. • Profit= Money producers make after costs are all paid

Output v. Input Output Input • The result of input. The final good or service • The amount of work or other productive resources that go into producing a product # of goods produced/total time worked=output per worker

Productivity • Producers reduce cost and earn a higher profit by increasing their productivity.

Productivity • Measure of the amount of output produced by a given amount of input • Output-input = productivity

Specialization and Division of labor • Division of Labor is when workers perform specific tasks • Specializati 0 n takes place when any of the 4 factors of production perform specific tasks • Division of labor • Specialization

Questions • 1. Who produced more? Solo or group? • 2. Why do you think factories use specialization? • 3. How does specialization increase productivity?

Benefits of specialization Specialization Increased production and higher productivity Higher Productivity Higher profits and business growth Increased production and business growth Economic Growth

Factors of Production • There are four productive resources • These are the four elements of any business Land Labor Capital Entrepreneurship

Human Capital Investment • Human capital is the main contribution to productivity • Investment in Education pays off in the long run

Education Investment Pays Doctorate Master Bachelor Associates Female Male Some College High School Grad 9 -12 no diploma 0 100 000 200 000