Wednesday, February 26, 2014

Smith - Wealth of Nations Presentation

Things to consider tomorrow:

What are the factors of production?

What does a division of labor do for a society?

How does a division of labor help and hurt society?

Why was money created?

Was the creation of money good for society? If no, how can it be improved?

How does labor relate to stock (capital)?

How does one's amount of stock held relate to his profit from it?

What is the relationship between the two types of capital?

1 comment:

  1. In response to "How does a division of labor help and hurt society?":

    Division of Labor allows for an individual to specialize in a particular field within the production process. This would generally lead to a more improved and productive work force as efficiency increases, which would lead a increased productivity. These factors all lead to an increased profit, which is the main goal for manufacturers. It allows a person to perfect a particular skill set so that there can be maximum efficiency. However, a division of labor does not necessarily only helps society because specialization could potentially limit one's ability to gain more general knowledge or a variety of skills. It does increase productivity but if everyone only has the skill set to carry out one particular job, the company becomes over-dependent on them doing that one job. It could also lead to boredom as once the skills have been perfected, there is no room left to learn. This could lead to decreased productivity, which will not help society.


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