Standard SSEF6a- Define productivity SSEF3a-Give examples of Specialization SSEF6b-Explain how investment in equipment and technology leads to economic growth

Economic growth Economic growth = when the nation’s output of goods and services increases overtime. Productivity = most important factor in growth. Productivity = A measure of the amount of output produced by a given amount of input

Remember: Input vs. Output Input = The result of input. The final good or service Output =The amount of work or other productive resources that go into producing a product Individual output = # of goods produced ÷ Total time worked

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

4 Productive Resources Land Labor Capital AKA: Factors of Production Entrepreneurship AKA: Factors of Production These are the four elements of any business. Business want to maximize the use of productive resources.

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

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

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

Human Capital Investment is the main contribution to productivity a measure of the economic value of an employee's skill set Investment in Education pays off in the long run

Education Investment Pays