Vocabulary Assembly line- A line of workers all assigned to a different task in order to create a final product. Specialization- Focusing of resources on a specific task. Ex: McDonalds Hamburgers, Columbian Coffee Division of labor- The act of breaking up a large job into smaller tasks.

Warm Up What is an incentive? Give an example of an incentive for a producer, employee, and consumer.

Warm up? What is an assembly line?

Costs faced by a producer that can change depending on the circumstances are called what? Variable costs Fixed costs Marginal costs Total costs The costs of producing each additional unit of a particular product is called what?

Labor & Production

Producers are always trying to find a way in increase productivity. The rate at which input is turned into output Two ways producers go about achieving this is through specialization and division of labor.

Specialization Specialization of labor The devotion of resources to a specific task More gets produced and with better quality. McDonald’s, Ford States and Countries also specialize Idaho potatoes, Columbian coffee

Division of Labor The act of breaking up a large job into smaller tasks Assembly line Created by Henry Ford The product moves down the line and is assembled by a series of laborers, each of whom carries out one specific task. One person puts on the doors, bumper, etc. Are there any disadvantages for the worker who puts on car doors all day compared to the worker that builds an entire car?

This leads to more production and better quality…Why? Workers get more practice and are able to perform the task more effectively

Cottage Industry vs. Factories Manufacturing of products is done at home Factory System Specialization and the assembly line are performed in huge buildings called factories Factories and these techniques make mass production possible More goods are able to be produced for less money

Business Organization Businesses usually have workers whose specialization is to manage and direct those whose labor produces the goods or services. Management

Technology Invention Innovation Any new form of technology created to meet a need. Innovation Something that profoundly changes and improves the way things are done.

Machine Capital Robotics Automation Agribusiness Machines that can be programmed to produce goods without the need for constant human interaction. Automation The process of replacing human labor with machines. Agribusiness The replacement of small family owned farms with large company owned farms. Then Now

Human Capital Unskilled workers Skilled workers Blue collar jobs Workers whose jobs require minimal amounts of training and few specific skills Skilled workers Workers whose jobs require greater training and/or education and more skills. Blue collar jobs Occupations that require manual labor White collar jobs Typically do not require manual labor

Happy Grams Questions Are Happy Grams a want or a need? Explain. What were the factors of production required for Happy Grams? What labor was required on your part in producing Happy Grams? Evaluate the productivity of your group in producing Happy Grams. Why is Division of Labor more efficient than the Cottage Industry? How did assembly lines affect supply and demand?

reflection What are ways producers try to increase productivity? What is the difference b/w specialization and division of labor? How does using specialization and division of labor lead to more production and better quality? Summarize the difference between the cottage industry and factory industry. What is the difference between an invention and an innovation? What is robotics? What is automation? What is agribusiness? Summarize the difference between a skilled and unskilled worker? What is the difference between an blue collar job and a white collar job?

Closing Question What are the advantages and disadvantages of specialization and division of labor?