Chapter 10 Section 3 Production Process

Production Process of changing resources (Land, Labor, Capital, Entrepreneurship) into goods. Consumer Goods – Goods created for personal use. Capital Goods – Goods used to make other goods

Cont. Productivity – A measure of average output per unit of input. Efficiency – Refers to the amount of wasted resources (Making the best use of available resources)

Improvements in Productivity Mechanization – The combined use of labor and machines (Began in 1700’s, industrial revolution) Assembly Line – Use of conveyor belt – Individual tasks

Cont. Division of Labor – Made possible by creation of interchangeable parts. Automation – Machines do the work and people oversee them. Robotics – Computer controlled machinery.