Topmusicanswers
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. ... This concept was popularised by Adam Smith in An Inquiry into the Nature and Causes of the Wealth of Nations (1776).
- What did Smith mean by the division of labor?
- Why was Adam Smith's division of labor important?
- What did Adam Smith say about labor?
What did Smith mean by the division of labor?
In the first chapter of the book, Smith introduces the idea of the division of labor, which means that the way a good or service is produced is divided into a number of tasks that are performed by different workers, instead of all the tasks being performed by the same person.
Why was Adam Smith's division of labor important?
For Smith, the division of labor built upon two natural propensities in human nature and in doing so created the possibility for greater efficiency, cheaper production, and more jobs. He also valued the division of labor for facilitating human cooperation and understanding on a mass scale.
What did Adam Smith say about labor?
Smith wrote that labor was the original exchange money for all commodities, and therefore the more labor employed in production, the greater the value of that item in exchange with other items on a relative basis.
