1. Productivity and Specialization

2. What is the main goal of business?
To make money, a PROFIT
Profit = the money earned after all
expenses (bills) are paid

3. What is key in order to a make a profit?
Because resources are LIMITED, businesses need to use them in the best way (efficiently).
a. Productivity and Specialization help
businesses use resources in the best way.

4. What is Productivity?
the amount of goods or services workers can produce in a period of time.

5. Why is productivity important to business?
Likely to make Profits
1. More goods/services are produced quicker
2. Less labor is required.
Goods/Services become less expensive to make.

6. How can businesses improve productivity?

7. What is SPECIALIZATION?
is when a business focuses on producing a specific type of goods or services.
Examples: Coca Cola makes drink.
Ford makes cars.

8. How does a business benefit from specialization?
1. Builds a reputation and a recognizable brand
*2. Focuses its attention on what is does best.
*3. Able to break down the production process
into steps and assign workers a specific task or job.
**Increases PRODUCTIVITY and profitability

9. What is it called when workers are assigned a specific task or job?
A. Division of Labor

10. What are the benefits of Specialization and Productivity?
Encourages the better use of resources, increase productivity
PRODUCTIVITY
Better use of resources, more goods/services are produced for less money
BOTH help BUSINESSES MAKE PROFITS

11. Economic Goals

12. Economic Freedom
The right of individuals to own productive resources and to make choices about the use of these resources

13. Economic Efficiency
Making wise use of productive resources; economic actions should not be undertaken if the additional costs exceed the additional benefits

14. Economic Growth
Producing more goods and services to meet the needs of a growing population

15. Economic Stability
Smoothing out the ups and downs in the economy; maintaining high levels of employment without causing rapid increase in prices
1) stable prices
2) full employment
3) economic growth

16. Economic Justice or Equity
What is fair and unfair in the distribution of wealth; equality of opportunity versus equality of outcome

17. Economic Security “Safety Net”
Things that the government provides to a society to ensure it’s people have certain things: education, healthcare, living, etc.