CONTENT STATEMENT
- The availability of productive resources and the division of labor can have a positive or negative impact on productive capacity.
CONTENT ELABORATION
In grade four, students learned that the role of the entrepreneur is to organize the use of productive resources to produce goods and services.
At this level, students consider the influence of available productive resources and the division of labor on productive capacity.
The productive resources (resources used to make goods and services) available and the division of labor (the way work tasks are separated) can impact the productive capacity (maximum output) of an economy both positively or negatively.
The productive capacity of a region is influenced by available resources. For example, the climate in Florida provides the necessary productive resources for large-scale production of citrus fruits. By dividing labor tasks among many workers with different expertise, citrus farms can increase their productive capacity.
In another example, a family-run business that builds bicycles in coastal Argentina can only produce as many bicycles for which they have the natural resources, capital goods, and human resources. Productive capacity may also be impacted positively or negatively by the way the work is divided during the production process.
EXPECTATIONS FOR LEARNING
Explain how the availability of productive resources and the division of labor can have a positive or negative impact on productive capacity.