1. Chapter 10 Section 3
Production Process

2. Production
Process of changing resources (Land, Labor, Capital, Entrepreneurship) into goods.
Consumer Goods – Goods created for personal use.
Capital Goods – Goods used to make other goods

3. Cont. Productivity – A measure of average output per unit of input.
Efficiency – Refers to the amount of wasted resources (Making the best use of available resources)

4. Improvements in Productivity
Mechanization – The combined use of labor and machines (Began in 1700’s, industrial revolution)
Assembly Line – Use of conveyor belt – Individual tasks

5. Cont.
Division of Labor – Made possible by creation of interchangeable parts.
Automation – Machines do the work and people oversee them.
Robotics – Computer controlled machinery.