1.  If you yelled for 8 years, 7 months and 6 days, you would have produced enough sound energy to heat one cup of coffee  40% of McDonald's profits come from the sales of Happy Meals  You can tell from the statue of a mounted horseman how the rider died. If all four of the horse's feet are on the ground, he died of natural causes. One foot raised means he died from wounds suffered in battle. Two legs raised means he died in action

2. Target D and Target E

3.  Productivity refers to the output per worker Output is total amount of goods and services produced in a system  Productivity is the amount of a good or service that can be produced with a given amount of productive resources.  Productivity is measured by dividing output (goods and services) by the number of inputs used to produce it

5.  Productive resources are the resources used to make things (goods and services)  Factors of Production  These include natural, capital and human resources  Issues arise because productive resources are scarce  Productivity increases when:  1. more goods or services are produced with the same amount of productive resources  2. the same amount of goods or services is produced with fewer productive resources

6.  Henry Ford introduced the assembly line which meant that cars could be built using many fewer many hours or the same amount of man hours produced more cars

7.  For Businesses:  Less resources are needed to reach the total output and/or the total output increases  This drives down production costs  Makes it cheaper/easier for businesses to produce goods  Goods are sold for cheaper

8.  For Consumers  There are more goods available and more people get to have what they want  Goods are more affordable  This will improve the standard of living for people in a country When people get goods for cheaper they have more money to spend on other things or to save for other needs  Standard of living refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area

9.  Human capital is the knowledge that workers have, including creativity, to do labor  Allowing workers to gain more human capital will enable them to be more productive  Being more knowledgeable = work being done faster  Being more knowledgeable = more creativity  Examples: A business invests its money to pay for its employees Masters programs to improve their productivity at work

10.  Capital goods represents physical capital- the man made things used to produce goods and services  A company invests in capital goods when they decide to purchase products to aid their workers  Investing in capital goods may also involve updating equipment  Example: A company buys a machine that can cut four pieces of wood at a time, rather than one

11.  When firms research and develop new products or processes it leads to increased productivity  Companies may invest in technology that can make things move faster, thus improving productivity  Example: A school district buys software that can create schedules for 2,700 students at a time rather than having a counselor make the schedules by hand

12.  The rate of productivity increasing is strongly affected by incentives that reward successful innovation and investments in research and development and in physical and human capital  Economic growth varies across countries because of differences in human and physical capital investments, technologies, and institutional arrangements and incentives

13.  Patents: A government license that gives an inventor the exclusive right to produce and sell a product for 20 years  Copyrights: A government license that grants an author exclusive rights to publish and sell creative works  Knowing that no one can steal your idea will help to motivate you to put in the proper effort to produce your idea

14.  Why did the American standard of living grow so rapidly after the American Revolution?

15.  The number of wooden chairs per household almost doubled  Most of the upper-middle class had upholstered sofas and chairs  Most people in cities and villages had replaced open fireplaces with cook stoves and parlor stoves  Many houses had larger windows because window glass was cheaper  Farm families owned more candlesticks, and oil lamps were becoming common in cities and villages  One household in four or five owned a carpet, and houses in most cities and villages had window curtains  Most households owned at least one clock

17. BEFORE THE COTTON GIN 1 MAN = 1 POUND OF CLEAN COTTON

18. AFTER THE COTTON GIN 1 MAN = 50 POUNDS OF CLEAN COTTON

19.  Cotton became the South’s most important crop and the most important export to Britain  Competition among textile producers drove prices down, which expanded the market for cotton cloth  Large planters began to spread westward into Mississippi, Alabama, and the rest of the south  Pressured the government to remove the Native Americans to Oklahoma  Cheap cotton also stimulated the textile industry in New England and more people could afford clothing  Also, cotton is washable so being able to clean clothes provided health benefits

20.  Why did the American standard of living grow so rapidly after the American Revolution?  Answer: Increase in Productivity