Productivity Activity



1. 4-5 People per team.

2. Name your team & assign jobs


a. Leader

b. Salesperson

c. Accountant

d. Manager

3. You will be producing books.

a. Tear a piece of paper in half;

b. Put the halves on top of each other

c. Tear again

d. Put the sheets together again and you have a 16 page book (front and back).

e. Place a paper clip in the upper left hand corner to hold it together.

f. Write the name of the company on the FRONT cover.

g. Number the even numbered INTERIOR pages (left side) from 2-16.

h. This is a COMPLETED book.

4. You will have two minutes to produce as many books as possible.

5. At the end of the round only inspected COMPLETED books will count.

6. Each group receives raw materials, paper clips, and ONE pen.

7. Make a practice book.


8. Each worker in each company is a BOOKMAKER

9. Bookmakers will SHARE materials and capital goods (pen) but NOT labor.

10. Two minutes for the round.

11. Book check...completed books only.

12. Using ACTIVITY 8.1 sheet calculate the Round 1 data:

a. Wages (line 2) are $1.00 per worker for each round.

b. Rent (line 3) is $2.00 per round.

c. Investment in capital (line 5) is the number of pens used TIMES $0.50.

d. The cost of materials (line 7) is $0.25 for the paper and the paper clip for each ACCEPTED book.

e. Labor productivity is the number of accepted books per worker in the time period.

13. Discussion within group: What is another way you could organize this book production process? Write on back of sheet.


14. Each group still only has one pen.

15. Groups may specialize the division of labor.

16. Repeat the round.

17. Record the data on 8.1 after the accepted books are counted.


18. You may now buy as many capital goods as you want.

19. Discuss the round 3 strategy.

20. Record the data on 8.1 after the accepted books are counted.