MICROECONOMICS
MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
Question
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Chapter 2, Problem 5QAP

(a)

To determine

The current scenario of the effects of division of labor on productivity and on human capacity by Adam smith.

(b)

To determine

The policy implications. 

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Students have asked these similar questions
Writing in 1776, Adam Smith was concerned not only with the profound effects of the division of labor on productivity (as your textbook notes) but also its stultifying effect on the human capacity. InThe Wealth of Nations, Smith warned that performing a few simple operations over and over again could render any worker, no matter his or her native intelligence, “stupid and ignorant.” a. Does the division of labor in today’s economy continue to have both these effects? b. What are the policy implications? (Radical)
Give the three reasons that explain why the division of labor increases an economy’s level of production.
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