Question

SSWH15 According to Adam Smith, how does division of labor lead to prosperity?

dividing labor would allow multiple people to work on the same task
dividing labor would limit the number of items sold
diving labor would make productivity increase
dividing labor would decrease profits

Answer 1

[AI-generated answer — Bot GPT 3.5]

According to Adam Smith, division of labor leads to prosperity by making productivity increase. This is because when labor is divided and specialized, each worker becomes more skilled and efficient in their specific tasks, leading to higher productivity and output. As a result, more goods can be produced and available for exchange in the market, leading to increased prosperity for the society as a whole.