Question

In Wealth of Nations, how does Smith introduce the reader to the central concept of the “division of labor” (DOL) and the role that plays in creating and increasing wealth in a market/capitalist economy? Does Smith recognize the possibility of a “dark side” to the DOL?

type, please not post pictures

Answer 1

Adam Smith Famously said in his book called The Wealth of Nation that the division of labour is limiited by the extent of the market . This is beacause it is by the exchange that each person can be specialised in their work and yet still have the access to a wide range of goods and services.The division of labour is the seperation of tasks in any system so the participants may specialise.An increace in the diviosion of labour is associated with the growth of the total ouput and trade , the rise in the capitalism , and the increasing complexity of the industrialised processes.Division of labour generally also increases both producer and individula productivity.The specialisation and concentration of the worlers on their single tasks often leads to greater skill and greater productivity.Smith also saw the importance of matching skills with equipments. For eg. pin makers were organised with one making the head another the body each using different equipments.