IGCSE Economics – Division of Labour

Just been doing Division of Labour with my IGCSE class and came across this very good video from Marginal Revolution University.

Division of Labour  is the breakdown of a production process so that each person can specialise in one part of that process and, through skill development and timesaving, workers’ productivity is increased. Adam Smith in The Wealth of Nations pointed out that the making of pins required 18 distinct operations and if one person did them all, approximately 20 pins would be produced each day. However, if ten people carried out some of the operations, then – through a division of labour – upward of 48,00 pins or 4,800 pins per worker would be produced each day.

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