1. Productivity 1.4

2. capital B. labor C. land D. entrepreneurship
Warm-up: On your new warm up sheet write the letter for the answer to the following questions
1. Unlimited needs and desires confronting limited resources is known as:
capital B. labor C. land D. entrepreneurship
2. Donald works as an accountant for a large corporation, which of the following terms would best describe him in this role?
entrepreneur B. firm   C. labor D. consumer
3. Jean owns a business baking wedding cakes. Her knowledge of how to make the perfect butter-cream frosting is what kind of resource?
A. Labor B. Physical Capital    C. Human Capital D. Entrepreneurship
4. Josh works for a large law firm in Atlanta. His boss informs him that a promotion will be available in four months. He wants the job, so he works harder to impress his boss. Josh is motivated by:  
negative incentive B. positive incentive   C. rational decision D. trade offs
5. What does the word allocate mean?
A. to describe B. to pick a strategy   C. to distribute D. to confront

3. Writing Task Standards: SSEF1, SSEF2
Directions: Write a paragraph using the following terms: scarcity, opportunity cost, trade-off, cost and benefit. Your paragraph could be a story or even a song that illustrates the fact that you understand these terms and can use them correctly.
Rubric:
Exceeds standard (4): Student uses all vocabulary terms correctly and writes a paragraph with no or minimal structure, grammatical, and spelling errors.
Meets (3): Student uses at least 4 of the five terms correctly, writing may contain some structural, grammatical, and spelling errors.
Improving (2): Student uses 2-3 of the terms correctly, writing contains structural, grammatical, or spelling errors.
Does Not Meet (1): Student uses 1 or less of the terms correctly, writing contains numerous errors.
0: Student wrote nothing

4. Agenda Today you will: Take 1.4 notes on productivity
Briefly discuss the benefits of Henry Ford’s assembly line
Interpret pictures to find signs of standard of living.
Complete a productivity simulation.

5. Standards
SSEF6: The student will explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education, and training of people.
a. Define productivity as the relationship of inputs to outputs.

6. Essential Question
How are changes in inputs (productive resources) related to changes in output?
How are the concepts of economic growth and standard of living related to increases in productivity?

7. Opener What does it mean to be productive?
How would you illustrate someone being productive?

8. Review of Specialization
Specialization is the concentration of the productive efforts of individuals and firms on a limited number of activities. Specialization makes societies more efficient and productive.
Examples:
Dermatologists have specialized in issues and diseases related to the skin.
Professors usually specialize in the study of one particular topic.
Ms. Adamson has specialized in the study of economics.

9. Productivity
Productivity: Making more with the same amount of resources or inputs.
In order to have long term economic growth, we must increase our productivity. Economic growth in turn increases our standard of living.
Technology usually increases productivity.

10. Discussion
How did the invention of the assembly line affect American productivity?

11. Productivity and the Assembly Line
Before the 20th century, most manufactured products were made individually by hand. A single craftsman or team of craftsmen would create each part of a product. They would make each part individually and then assemble the parts themselves.
The assembly line increased productivity because each person could specialize in one particular task. This allowed them to become very good at this task before passing it on.

12. Productivity and the Assembly Line
As a result of the assembly line, Ford cars came off the line in 3 minute intervals. This was much faster than previous methods, increasing production by eight to one (requiring 12.5 man-hours before, 1 hour 33 minutes after), while using less manpower. Same inputs but more output!!
Only Japan black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying paint was developed in 1926.
 In 1914, an assembly line worker could buy a Model T with 4 months' pay.

13. Productivity and the Assembly Line
The assembly line technique was an important part of the diffusion of the automobile into American society.
Decreased costs of production allowed the cost of the Model T to drop within the budget of the American middle class. In 1908, the price of a Model T was around $825, and by 1912 it had dropped to around $575. This price reduction is comparable to a drop from $15,000 to $10,000 in dollar terms from the year 2000.

14. Productivity – Discussion
How as the invention of computers and smart phones affected our nation’s productivity?
How have increases in writing technology (typewriters, computers, iPads, etc) had an impact on our writing productivity.

15. Economic Growth
Economic growth is a steady, long-term growth in our economy.
Economic growth leads to a higher quality of life or standard of living.
Standard of living is the degree of wealth and material comfort available to a person or community.

16. Standard of Living - Discussion
If you were to guess, which countries would you say have the highest standard of living?

17. Standard of Living

18. Standard of Living

19. Standard of Living

20. Standard of Living

21. Standard of Living

22. Quality of Life / Standard of Living

23. Work Period
Paper Chains productivity simulation.

24. Production Simulation
Overview
The class will be divided into two firms.
There will be several rounds in which each firm will produce chains out of paper.
Each round last exactly 2 minutes
Each firm is going to hire one more worker at the start of each round.
Resources
1 stapler, 1 scissors, 1 table, and plenty of staples and paper
Rules
Workers cannot stockpile slips of paper. No extras
Workers cannot cut more than one paper at a time
Workers can only add links to one side of the chain
Each link must pass inspection
If links don’t meet specifications they won’t count
Responsibilities
The manager will hire the workers.
The inspector will check to make sure each product is made to specifications

25. Production Simulation
Step 1: Cut paper down the middle into two piece
Step 2: Fold piece down the middle
Step 3: Wrap ends around and staple
Step 4: Add more links to one end

26. Closure: Thumbs up Thumbs down:
Productivity is the relationship between inputs and output.
True
Adding workers always increases productivity and efficiency.
False
Adding more capital goods may cost money in the present but can lead to growth in the future.
Firms should make decisions where marginal benefits exceed marginal costs.
A stapler would be considered a labor resource.