ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -specialization. The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity and judgement with which it is any where directed, or applied, seem to have been the effects of the division of labour.

Detailed explanation-2: -THE greatest improvement in the productive powers of labor, and the greater part of the skill, dexterity, and judgment with which it is anywhere directed, or applied, seem to have been the effects of the division of labor.

Detailed explanation-3: -The improvement of dexterity increases the quantity of work a person can perform by reducing work to a single operation that they can quickly master and excel at. It saves time by eliminating the time lag when one person passes from one type of work to another (i.e, retooling, retraining, learning curve, etc.).

Detailed explanation-4: -The main cause of prosperity, argued Smith, was increasing division of labor. Smith gave the famous example of pins. He asserted that ten workers could produce 48, 000 pins per day if each of eighteen specialized tasks was assigned to particular workers.

Detailed explanation-5: -Productive labor, according to Smith, was any work which fixed itself in a tangible object. Unproductive labor, was any work where the value was consumed as soon as it was created. Smith contrasted the role of laborers in a manufacturing plant (productive work) with the tasks of a servant (unproductive work).