1. 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.

2. Labor & Production

3. 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.

4. 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

5. 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?

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

7. 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

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

9. 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.

10. 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

11. 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

12. 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?

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