1. Smith suggests that division of labor leads to increased production through t
ID: 1169162 • Letter: 1
Question
1. Smith suggests that division of labor leads to increased production through three different avenues. Explain.
2. “It is the great multiplication of the production of all the different arts in consequence of the division of labour, which occasions in a well-governed society, that universal opulence which extends itself to the lowest rank of the people”. What does this sentence reveal about Smith’s views on what constitutes and what determines the wealth of nations?
3. Smith argues that in civilized society, humans rely at all times on the cooperation and assistance of others. How do we appeal to others for their help, according to Smith?
Answers can be found in Ch. I-II of Book One of the Wealth of Nations
Explanation / Answer
1. Division of labour
We all know that Adam Smith regarded as the Father of economics. He is written in his famous book Wealth of Nations published in 1776. We know that Division of labour is one of the important contribtion of Adam Smith. He explains that Division of labour is the specialization of labour force. According to him " Division of labour is the specialization of coorporating individuals Who perform specific task and roles. So according to the specialization a labour will perform one task and he will become a specialist in his task. It will improve entire production of the country.
According to Adam smith the division of labour through three different approaches. That is:
1. Skill
2. Dexterity
3. Judgement
These three approaches are discussed below:
Skill
We know that every worker needs skill in his work. So Smith argued that skill important for doing a task. So he suggests that improve skill to improve the production of the country. He suggests that upgrade the knowledge based skill of the changing pattern of the nature of work. When the knowledge based skill is needed for the knowledge intesive jobs. So the work force must be specilased in the knowledge based skill that will improve their working condition. It will permanantly improve the employment of the country. If the work force are unawreness of knowledge based jobs so the unemployment must be increased in the country.
The changes in the skill based jobs we categorized that is:
1. Skilled labour force
2. Semi skilled labour force
3. Unskilled labour force
So in three catogories the skilled workers cannot faced any type of unemployment. But in the Unskilled labour force will faced huge unemployment and social exclusion. Adam smith suggests that improve workers skill to improve the production.
Dexterity
We know that dexterity means that a skill that performing a task. The skill performing by using hand. When we improved the dexterity of labour force that will increased the total production. In the words of Smith, a labour who work with hammer, then he cannot used his nails.So improve in dexterity that will improve the efficiency of labour and it will permanantly improved the production.
Judgement
Smithy suggest that if we improve the productive power of the labour the third important factor is judgement. The judgement makes a labour perfect. We know that judgements directs the labour. The directive judgement positivley benefit for the division of labour.
2.
In this statement smith believed that all the workers in a society will be able to work. The division of labour help all the people in a society and entered into them labour force of the country. So all the workers in a society will contribute the total production of the country. The joint labour will create additional production to the socitey. When all the workers are entered into the job the country will get the universal opulence. This will extend every ranks of people of the society.
3.
In this statement Smith argued the point is that the economic exchages of goods and services. So in the exchange of goods and services the country needs held. So gave much importance to coorporation and assistence. In this way Smith argues that when the people in a society produce so many goods and services, So this must be exchages for the different locations and different classes of the society. In this way the economy needs coorporation and assistence. So this economic exchages create universal benevolence in a society.
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