reflectionWhat is the difference between variable costs
and fixed costs?What is the goal of producers?What is the incentive for producers to sell?What is marginal cost?What is the name of the economic model that
compares the marginal costs and marginal benefits?
What is the problem with cost benefit analysis?
Warm UpWhat is an incentive? Give an example of an
incentive for a producer, employee, and consumer.
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.
Warm up?What is an assembly line?
1. Costs faced by a producer that can change depending on the circumstances are called what?
A. Variable costsB. Fixed costsC. Marginal costsD. Total costs
2. The costs of producing each additional unit of a particular product is called what?
A. Fixed costsB. Marginal costsC. Total costsD. Variable costs
EQ: HOW HAS MASS PRODUCTION CHANGED THE WAY GOODS ARE PRODUCED AND HOW DOES THIS AFFECT MARKETS?
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.
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
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?
This leads to more production and better quality…Why?Workers get more
practice and are able to perform the task more effectively
Cottage Industry vs. Factories Cottage Industry
Manufacturing of products is done at home
Factory SystemSpecialization 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
Business OrganizationBusinesses usually
have workers whose specialization is to manage and direct those whose labor produces the goods or services.Management
Technology Invention
Any new form of technology created to meet a need.
Innovation Something that
profoundly changes and improves the way things are done.
Machine Capital• Robotics
– 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
Human Capital Unskilled workers
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
Happy Grams Questions1. Are Happy Grams a want or a need? Explain.2. What were the factors of production required
for Happy Grams?3. What labor was required on your part in
producing Happy Grams?4. Evaluate the productivity of your group in
producing Happy Grams.5. Why is Division of Labor more efficient than the
Cottage Industry?6. How did assembly lines affect supply and
demand?
GRAPHIC ORGANIZER
EQ: HOW HAS MASS PRODUCTION CHANGED THE WAY GOODS ARE PRODUCED AND HOW DOES THIS AFFECTS MARKETS?
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?
Closing Question What are the advantages and disadvantages
of specialization and division of labor?