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 UpWhat is an incentive? Give an example of an

incentive for a producer, employee, and consumer.

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

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?

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?