generated from coulomb/repo-seed
53 lines
1.2 KiB
Markdown
53 lines
1.2 KiB
Markdown
# Division of Labour
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## Definition
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The separation of work into specialized tasks that increases productivity and depends on opportunities for exchange.
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## Source Chapter
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Book I, Chapter 3
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## Context
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Smith explains that the power of exchanging gives occasion to the division of labour, but that this division is constrained by how much exchange the market can support.
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## Economic Domain
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Production
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## Original Wording
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Smith writes that the power of exchanging gives occasion to the division of labour.
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## Modern Interpretation
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Specialization works only when producers can exchange specialized output for the goods they need.
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# Market Extent
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## Definition
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The geographical and economic reach of exchange that determines whether specialized producers can find enough demand for their surplus output.
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## Source Chapter
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Book I, Chapter 3
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## Context
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Smith states that the extent of the division of labour must always be limited by the extent of the market.
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## Economic Domain
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Exchange
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## Original Wording
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The extent of this division must always be limited by the extent of the market.
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## Modern Interpretation
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Market size sets the practical ceiling for specialization because small markets cannot absorb surplus production.
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