# Productive Powers of Labour

## Definition

The capacity of labour to generate output, which Smith argues is substantially enhanced through the division of labour, resulting in greater skill, dexterity, and judgment in the application of labour.

## Source Chapter

Book I, Chapter 1

## Context

Smith identifies the division of labour as the primary source of improvements in productive powers of labour, using the pin factory example to demonstrate how specialisation multiplies output.

## Economic Domain

Production

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