1. Standard SSEF6a- Define productivity
SSEF3a-Give examples of Specialization
SSEF6b-Explain how investment in equipment and technology leads to economic growth

2. Economic growth
Economic growth = when the nation’s output of goods and services increases overtime.
Productivity = most important factor in growth.
Productivity = A measure of the amount of output produced by a given amount of input

3. Remember: Input vs. Output
Input = The result of input. The final good or service
Output =The amount of work or other productive resources that go into producing a product
Individual output =
# of goods produced ÷
Total time worked

4. Productivity
Producers reduce cost and earn a higher profit by increasing their productivity.

5. 4 Productive Resources Land Labor Capital AKA: Factors of Production
Entrepreneurship
AKA: Factors of Production
These are the four elements of any business.
Business want to maximize the use of productive resources.

6. Profit Profit= Money producers make after costs are all paid
Producers want to make as much money as possible by selling the goods and services they produce.

7. Specialization and Division of labor
Division of Labor is when workers perform specific tasks
Division of Labor
Specialization takes place when any of the 4 factors of production perform specific tasks
Specialization

8. Benefits of specialization
Increased production and higher productivity
Higher Productivity
Higher profits and business growth
Increased production and business growth
Economic Growth

9. Human Capital Investment
is the main contribution to productivity
a measure of the economic value of an employee's skill set
Investment in Education pays off in the long run

10. Education Investment Pays