Debbie gets up at 6 am takes a shower, eats a bowl of cereal for breakfast, gets dressed, and quickly takes the dog for a walk by the park next to her house. Before she leaves to go to work, Debbie puts the trash and recycling bin out by the curb. She gets in her new car she was able to buy because of her new job which pays much more. Also, because of the weak economy, dealerships are giving great bargains on new cars. She really liked the BMW, but the Toyota was cheaper and she would have more money to go shopping. Debbie drives down the new highway that just built and goes to the mall. She walks in and out of several stores and sees several things she would like to buy. There is a watch she really likes, but there is also a great pair of boots she had her eyes on, but she doesn’t have money for both. Due to her new job, she also must purchase a new suit, work shirts, and she must buy them because of the dress code. She finally decides on two suits, two shirts, and the watch because she really likes it and it was the last one they had. The cashier rings her up; she hates to see all the sales tax added to her total! Debbie then goes to a restaurant, looks at the menu and decides to get a salad and water for lunch. The waiter is really nice so she gives him a nice tip. Debbie hops in her car and heads home after a successful day of shopping!

WHAT GOES INTO MAKING A PRODUCT? PRODUCTION WHAT GOES INTO MAKING A PRODUCT?

PRODUCTION The resources that go into making a product. There are 4 factors of production.

NATURAL RESOURCES The raw materials used to make a product. Examples-Water, cotton, wood, oil

CAPITAL The tools and machines used to make a product. (Hammer, nails, machines) Money is only considered capital when it is used to buy a factor of production

Entrepreneurship The leadership, the person who takes the risk of starting the business. Usually the person who gives the money and has the idea.

LABOR The human effort that goes into making a product. The people who run machines and do the work.

Division of Labor Dividing the work into smaller, separate task When labor is divided, people become SPECIALIZED. SPECIALIZATION-when workers concentrate on a specific task and become very good at that task.

SPECIALIZATION BENEFITS OF SPECIALIZATION 1. Workers become expert at a certain job or task. 2. The worker become better at his/her job. 3. The more you do a task, the faster, more efficient you become.

SPECIALIZATION PROBLEMS 1. Workers are dependant on each other. 2. If one person doesn’t do their job, it can cause a breakdown in production.

SCENERIO Think about a restaurant: 1. Where do you see division of labor in a restaurant? 2. How does this division of labor lead to specialization? What are caused when one person doesn’t do their job?