Presentation on theme: "12/2Warm-Ups 1. If output does not increase despite hiring another laborer, is an example of … 2. What is the cost of producing one additional unit? The."— Presentation transcript:
12/2Warm-Ups 1. If output does not increase despite hiring another laborer, is an example of … 2. What is the cost of producing one additional unit? The revenue created from producing one additional unit?
Costs of Production review Trade-offs Opportunity cost Fixed costs Variable costs Total costs Thinking at the margin Marginal cost Marginal revenue Cost benefit analysis Law of Diminishing Marginal Returns Consumer goods Capital goods Incentive Production Possibilities Curve Underutilization
How to Increase Productivity p. 210 Objective: Explain methods used to increase production through notes, activity and video.
How to Increase Productivity Remember…What is the goal of economics?
How to Increase Productivity Remember…What is the goal of economics? Solving the problem of scarcity!
Answering the 3 Basic Economic Questions What goods and services should be produced? Should money go to schools or a new city park? Should money be used for defense or for social services? How should these goods and services be produced? In producing a product, how much pollution should we allow? For whom should these goods and services be produced? After goods and services have been produced, society must determine how goods and services should be distributed among members of society…use a price system in the US
How can an Economy become more productive? Specialization Takes place when people, businesses, regions, and even countries concentrate on goods and services that they can produce better than anyone else (i.e. you wouldn’t build a house yourself, you would use a carpenter, plumber, electrician, etc.)
How can an Economy become more productive? Division of Labor The breaking down of a job into separate, smaller tasks, which are performed by different workers. Assembly Line A manufacturing process in which interchangeable parts are added to a product to create an end product.
Technological Advances Robotics – machines perform physical tasks. Inventions – new goods and services. Innovation – improving a good or service. Automation – machines control production.
How can an Economy become more productive? Labor/Workers Blue-collar workers: working class employee who performs manual labor. Example: Factory Worker
How can an Economy become more productive? Labor/Workers: White-collar workers: perform tasks that require less physical labor. Skilled workers oftentimes are more highly paid than blue-collar workers. Example: doctors, lawyers, administrative
I Love Lucy Be prepared to answer the following questions after the video: At the beginning of the show: 1. What is Lucy and Ethel’s specilization 2. What is Fred and Ricky’s specialization? After the job switching: 3. How do they use division of labor? 4. How do Lucy and Ethel experience division of labor at their new job
Homework 19.2 and 19.3, pp. 213-214 Study for tomorrow’s quiz covering: costs of production, law of diminishing marginal returns, and productivity