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Showing posts from July, 2022

Division of Labor

The economic principle of division of labor, workers can concentrate on particular tasks when the production process is divided into stages. As long as there is enough volume and amount produced, workers who can focus on one particular component of production are more efficient overall. Adam Smith made this idea widespread in his book An Inquiry into the Nature and Causes of the Wealth of Nations (1776). He famously cited a pin factory as an illustration. Adam Smith discovered how workers' division and assignment to various responsibilities during the manufacturing of a pin greatly boosted production efficienc y. Why is the labor division more effective? 1. Workers require less training because they just need to be proficient in a limited set of skills. 2. Using one specific tool to complete one task at a time is quicker. 3. When a worker drops one tool and then picks up another, no time is lost. 4. A worker's branch of production might increase their sense of loyalty and