Readings - week 3

Question 1

Adam Smith, The Wealth of Nations, chapter 1:

What does he say was the main cause for the increase in productivity? Explain the 3 reasons behind that cause.

Answer 1

Division of labor;

1. increase of dexterity in every particular workman
2. saving of the time which is commonly lost in passing from one species of work to another
3. the invention of a great number of machines which facilitate and abridge labor, and enable one man to do the work of man (“men are much more likely to discover easier and readier methods of attaining any object when the whole attention of their minds is directed towards that single object than when it is dissipated among a great variety of things” + philosophers)

Question 2

Adam Smith, The Wealth of Nations, chapter 1:

Why does he think that agriculture can’t keep up with industries?

Answer 2

Division of labor isn’t possible in the same way for farmers