1. Warm Up #2 1.What is the purpose of a grand jury proceeding? 2.Why does scarcity exist? 3.Explain the difference between FIXED and VARIABLE cost. 4.How do we figure out the profit of a business? 1.(the formula) Your creative writing piece is due TODAY. Please have it out.

2. Factors of Production, Productivity, Specialization & Division of Labor

3. Factors of Production Natural Resources – Land, water, minerals, sun, etc. Labor- the services performed by workers for wages Capital- manufactured goods (tools) that are used to make other goods. – Machinery, buildings, tools Entrepreneurs- individual who starts a new business, introduces new products, improves processes.

4. Productivity Productivity is the amount of goods and services produced (or output) per unit of productive resources used (or input) in a specific period of time such as one hour. Increased by producing more goods/services with the same amount of resources – or by producing the same amount of goods /services with fewer resources. Productivity can be increased by investing in capital goods such as factories, machines and tools. Individual workers can also increase productivity and enhance their own earning power by investing in their human capital through education and training. – Human Capital- is the sum of people’s skills, abilities, and motivation.

5. Indicators of High Productivity 1.Best utilization of the available human and material resources. 2.Minimum wastage and losses of materials. 3.Quantitative and qualitative production of goods at lower cost.

6. Specialization Specialization takes place when people, businesses, regions, or even countries concentrate on goods or services that they can produce better than anyone else. Improves productivity. – Assembly line in a factory – Growing oranges in Florida instead of Chicago

7. Division of Labor Division of Labor is breaking down a job into a number of simpler tasks and assigning these tasks to specialists who generally perform only their assigned task. Think of an assembly line. Increases efficiency, and therefore productivity.

8. Economic Interdependence Because of specialization we are economically interdependent on the rest of the world, and our own nation. We must rely on others, and others must rely on us. Events in one region of the world have an impact on the rest of the world.

9. The Lorax