~Warm Up~ What are 3 benefits of a mixed economic system???

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Warm UpWhat are 3 benefits of a mixed
economic system???
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Some of the benefits of a mixed economy are

• Offers consumers the freedom to choose from a
  variety
• Govt can redistribute to those in need
• Eliminate inefficiency if people get to keep what
  they earn

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SPECIALIZATION

• Lets review together
• SWBAT Define and identify specialization and
  visually represent the process and examples in a
  comic strip.

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Specialization

1. What is specialization?
2. Why do you think Miss Stack shifted from a
   multi-toy company to a specialized doll making
   company? Why would that be beneficial for her?
3. How might employees feel about this change? What
   are the benefits and costs of employees being
   told to only make one product and one produce
   alone.
4. How might what you learned in this story be
   applied to an international/global scale? How do
   you think countries should operate???

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I LUCY
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QUESTIONS

• Where does Lucy and Ethel get a job at?
• What does the company specialize in?
• In the second clip, what type of machine does the
  company use to create the product?
• What is Lucy's and Ethel's new task?
• How do they solve the problem when production
  speeds up?

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What is specialization?

• Specialization means to concentrate your
  resources and energy into making a few items,
  rather than a variety of items.

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BEFORE SPECIALIZATION













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After Specialization
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Why do you think Miss Stack shifted from a
multi-toy company to a specialized doll making
company? Why would that be beneficial for her?

• Could lead to improved sales and efficiency if
  you concentrate on what your company is best
  suited for.

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How might employees feel about this change? What
are the benefits and costs of employees being
told to only make one product and one product
alone.

• Employees might be bored at the idea of doing the
  same thing over and over again. Gets repetitive.
• Benefit-employees get good at their jobs since it
  is broken down to simpler tasks

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Adam Smith The Pin Story

• When he first observed the factory, he noticed
  that each worker was producing his or her own
  pins.
• By the end of the day, the total production by
  the workers was 2,000 pins.
• He stated that each worker should specialize in
  the production stage rather than produce his or
  her own pins.
• Through specialization, the total output by the
  factory increased to 20,000 pins per day.

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Where do we see Specialization?

• I am going to prove that specialization actually
  works.
• On a scratch sheet of paper, write down what you
  think each state is known for.

• Idaho
• Florida
• Texas
• Michigan
• Nevada

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Trivia Question

• Why dont we grow oranges in Alaska?
• Can you grow oranges in Alaska?
• Why are oranges grown mostly in Florida
  California?

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How can Specialization be applied on an
international/global scale? How do you think
countries should operate???

• In the same way, countries shouldnt try to
  produce everything for its citizens. Rather,
  like the example with the toy company, countries
  should use their limited resources to SPECIALIZE
  in what the country is best suited for. And
  then, it can trade with other nations for other
  goods.

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Three Aspects of Specialization

• Economic Advantages
• Workers get good at their jobs
• Less time wasted shifting from one job to another
• Specialized capital can be developed
• Trade or Exchange
• Useful only if theres a demand for your
  specialty
• Could trade or barter (but is time consuming and
  inefficient)
• Therefore, money usually facilitates exchange
• Alienation
• Can lead to boredom and low morale

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Economic specialization leads to

• 1.) EFFICIENCY
• 2.) HIGHER STANDARD OF LIVING

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Evolution of the Market Economy pg. 24

1. Division of Labor (people have specific
   tasksthink of the assembly line)
2. Leads to Specialization (really good at one or a
   few products)
3. Wants to become an expert in your good, so you
   develop specialized capital (good
   technology/tools)
4. Leads to efficiency
5. Allocate your resources (sell your goods)
6. Leads to PROFIT!!!

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Directions On the back, create a comic strip
that illustrates the evolution of the market
economy.
1. Division of Labor 2. Specialization 3. Specialized Capital
4. Efficiency 5. Allocate Resources 6. Profit