Wealth of Nations Summary
AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS by Adam Smith
(Chapters I-VIII Summary)
Submitted to: Sir Lemuel P. Del Rosario
Submitted by: Rian Karlo Z. Punzalan
Section:2B-G2
CHAPTER I
THE DIVISION OF LABOUR.
When a work is broken down into much smaller work and distributed into individuals that specialize in that work, we can achieve maximum productivity.
For example the work of making a computer program can be divided up into these assignments. 1. The main programmer handles the Coding. 2. A debugger scans for errors and bugs within the program. 3. The designer designs the interface of the program.
By using this example we can show how productivity works, because if all of those tasks will be given to one person only, the productivity will suffer thus it takes too much time to complete the program, unlike when it is divided into smaller tasks.
The fruits of division of labor: It decreases the effort of every workman to produce a product. It also saves time because the work is passed down from one division into another. Single Purpose machines can be used to perform a specific task in a work division.
Knowledge is also divided into workmen, the ways and techniques for increased productivity that are specifically designed for their divisions. They don 't need to know all the process of production but only to focus on their division. And when that knowledge is gathered, it will represent the whole manufacturing process itself. It is proven that Increased Productivity may result into a Wealthy Society. Because Division of Labor leads to High Productivity, which means more excess products that is beyond what the society needs and then opens the opportunity of Trading. Trading = Wealth. The Division of Labor was already in our civilization from the most ancient times, one example is the building of Pyramids in Egypt. One slave could not achieve such success alone, thus Division of Labor comes in action. It is applied
(Chapters I-VIII Summary)
Submitted to: Sir Lemuel P. Del Rosario
Submitted by: Rian Karlo Z. Punzalan
Section:2B-G2
CHAPTER I
THE DIVISION OF LABOUR.
When a work is broken down into much smaller work and distributed into individuals that specialize in that work, we can achieve maximum productivity.
For example the work of making a computer program can be divided up into these assignments. 1. The main programmer handles the Coding. 2. A debugger scans for errors and bugs within the program. 3. The designer designs the interface of the program.
By using this example we can show how productivity works, because if all of those tasks will be given to one person only, the productivity will suffer thus it takes too much time to complete the program, unlike when it is divided into smaller tasks.
The fruits of division of labor: It decreases the effort of every workman to produce a product. It also saves time because the work is passed down from one division into another. Single Purpose machines can be used to perform a specific task in a work division.
Knowledge is also divided into workmen, the ways and techniques for increased productivity that are specifically designed for their divisions. They don 't need to know all the process of production but only to focus on their division. And when that knowledge is gathered, it will represent the whole manufacturing process itself. It is proven that Increased Productivity may result into a Wealthy Society. Because Division of Labor leads to High Productivity, which means more excess products that is beyond what the society needs and then opens the opportunity of Trading. Trading = Wealth. The Division of Labor was already in our civilization from the most ancient times, one example is the building of Pyramids in Egypt. One slave could not achieve such success alone, thus Division of Labor comes in action. It is applied