Transcript how to increase productivity ppt

12/2
Warm-Ups
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?
1.
Costs of Production review
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Trade-offs
Opportunity cost
Fixed costs
Variable costs
Total costs
Thinking at the margin
Marginal cost
Marginal revenue
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Cost benefit analysis
Law of Diminishing
Marginal Returns
Consumer goods
Capital goods
Incentive
Production Possibilities
Curve
Underutilization
Scenarios Review
p. 211-212
How to Increase
Productivity p. 210
Objective: Explain methods used to
increase production through notes,
activity and video.
How to Increase Productivity
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Remember…What is the goal of
economics?
How to Increase Productivity
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Remember…What is the goal of
economics?
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Solving the problem of scarcity!
Answering the 3 Basic Economic
Questions
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What goods and services should be produced?
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How should these goods and services be produced?
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Should money go to schools or a new city park?
Should money be used for defense or for social services?
In producing a product, how much pollution should we allow?
For whom should these goods and services be produced?
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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?
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Specialization
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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.)
Specialization
How can an Economy become more
productive?
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Division of Labor
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The breaking down of a job into separate,
smaller tasks, which are performed by different
workers.
Assembly Line
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A manufacturing process in which
interchangeable parts are added to a product to
create an end product.
Ford Assembly Line
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Ford Assembly Line video
How can an Economy become more
productive?
How can an Economy become more
productive?
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Technological Advances
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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?
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Labor/Workers
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Blue-collar workers: working class employee who
performs manual labor.
Example: Factory Worker
How can an Economy become more
productive?
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Labor/Workers:
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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
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19.2 and 19.3, pp. 213-214
Study for tomorrow’s quiz covering: costs of
production, law of diminishing marginal
returns, and productivity
Remember Yoda?
There is no try….
Origami Yoda demoSkilled craftsperson vs. assembly line
Origami Yoda demo
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Which is more efficient- skilled craftsman or
assembly line?
Which produces a better product?
Which is more satisfying/fun?