Asked by: Guilermo Arinto
asked in category: General Last Updated: 2nd May, 2020

What did Adam Smith think about the division of labor?

Adam Smith famously said in The Wealth of Nations that the division of labour is limited by the extent of the market. This is because it is by the exchange that each person can be specialized in their work and yet still have access to a wide range of goods and services.

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Consequently, what did Adam Smith say about the division of Labour?

Definition: Division of labour is an economic concept which states that dividing the production process into different stages enables workers to focus on specific tasks. Adam Smith noted how the efficiency of production was vastly increased because workers were split up and given different roles in the making of a pin.

Secondly, what is according to Smith the principle which causes the division of Labour? Adam Smith begins by stating that the greatest improvements in the productive power of labor lie in the division of labor. Even in the production of very simple products, division of labor always increases productivity exponentially.

Hereof, what did Adam Smith think were the advantages of the division of labor?

Adam Smith believes that the division of labor and specialization enables people to become adept at their job and therefore more productive. This is because in specializing, they learn how to do their specific part of the job quickly and well.

Who invented division of labor?

Adam Smith

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