ECONOMICS ASSIGNMENT

Economics Assignment



Economics Assignment

a

For Adam Smith's Division of Labor is the main source of growth and development of a country. This is possible because it increases the worker's ability to engage a small number of operations. His premise is exemplified with a pin factory. If a pin was made entirely by a worker, this man would take much to stretch the wire, then cut, and then grind the tip to finally put a head. That is if ten people do pins alone could make only a few per person, whereas if working with each worker specializes in part of the process (only one cut, the other draws out the wire, the other hit his head, etc.). At the end, there will be a much greater production. This is the key to Economic Growth (Hobsbawm, 1969). However, despite the great benefits that a country generates the Division of Labor, Adam Smith believes that this division is the main cause of a large group of people is idiotic, to having to work very mechanically.

b

The use of more specialized machinery in pin-making would lead to increased output. In the large manufactories, such as pin manufacturing industry, which are designed to meet the vast demand for large numbers of people, every single part of the work is such a large number of workers that already seems to be impossible to unite them all in the same studio. Here, we have seen only workers with one part of the work. And so, although in large manufactories, a division of labor can be carried much further than in manufactures smaller value in them is not so much because of this and much more pay less attention to them (Smith, 1983). This significant increase in the amount of work that can perform as a result of the ...