Lesson 6 pg. 21 - 24

Question 1

What did Adam Smith believe was the reason that the Carron ironworks succeed and the nail makers of Kirkcaldy fail?

Answer 1

> Smith found that the Carron plant effectively employed division of labor, the separation of work into individualized tasks
the division of tasks among workers allowed the production of goods by people doing the jobs they did best, a priniciple known aw specialization

Question 2

Adam Smith’s formula for economic success emphasized two important ingredients–what were they?

Answer 2

Adam Smith’s formula for economic success emphasized two important ingredients–an efficient division of labor and a free market in which individuals are allowed to own private property and make personal choices.
>when individual producers are allowed to pursue their own interests, they are brought together, as if by an “invisible hand” to make mutually beneficial choices that are best for both the individual and the entire society