Production Survey of Social Studies Economics Mr. Biddle Artwork of Caleb Biddle.
-
Upload
aubrey-chambers -
Category
Documents
-
view
225 -
download
0
Transcript of Production Survey of Social Studies Economics Mr. Biddle Artwork of Caleb Biddle.
The 3 Branches of Industry
3 Branches of Industry
Production
Distribution
Consumption
• Production- the application of tools and a processing medium to the transformation of raw materials into finished goods for sale
The 3 Branches of Industry
• Distribution- the process between the Manufacturer and retailer, where goods are delivered to various places and areas
• Getting your goods from the factory to the store
The 3 Branches of Industry
• Consumption- the final use of goods and services to provide utility
• The buying and consuming of the product
Productivity
• The single most important determinant of a nations standard of living is the productivity of its resources
Three Factors of Production
• Factors of Production are resources necessary to produce what people want or need
• Land is the society’s limited natural resources-landforms, minerals, vegetation, animal life and climate
• Capital is the means by which something is produced such as money, tools, equipment, machinery, and factories.
• Labor is the workers who apply their efforts, abilities and skills to production.
Factors that effect Production
• Technological Change• Investing in Capital
Goods• Human Capital/Resources
Technological Change
• Technological change may increase production and employment by making products more affordable
• Ex- the assembly line made automobiles more affordable to the average household
• It stimulated production and employment in the auto industry
Technological Change
• Technological change can also lead to workers losing their jobs, or being displaced by a machine– You can train people to
use machines to increase productivity in the work place
Investments in Capital Goods
• Capital Goods- include all human creations used to produce other goods and services
• Ex- Factories, Machines, Tools, Trucks, and etc.
Investments in Capital Goods
• Investing in a capital goods increases productivity, because it makes you more efficient with your time
Investments in Capital Goods
• Investing in a capital good may take time and money, but it may be worth it in the long run– Buying a tractor helps
farmers produce more goods
• When a nation produces capital goods it leads to economic growth
Human Capital/Resources
• Labor is the resource most commonly used to measure productivity– Measure by hour, day,
or week
Human Capital/Resources
• The resource most responsible for increasing labor productivity is capital
• Capital- tools, equipment, and factories used in the production of goods and services
Human Capital/Resources
2 types of Capital:Human Capital- the
accumulated knowledge, skill, and experience of the labor force- As workers acquire more human capital their productivity and income grow
Human Capital/Resources
Physical Capital- the same as capital good-any good that is used to produce a final product
Federal Reserve
• Gov’t organization that monitors the Economy
Duties• Regulate the monetary
supply and interest rates• Lend money to banks• Advise the President and
Congress on economic decision making
Trickle Down Economics
• The idea in American Politics that tax breaks to big businesses and the wealthy will benefit poor individuals and the economy as a whole
• Money will trickle down to the poor Also referred to as Reaganomics