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Question

The economic benefits of Division of labour was first proposed by:

The correct answer is

Adam Smith

Understanding the Division of Labour in Economics

The question asks about the individual who first proposed the economic benefits associated with the Division of Labour. This concept is fundamental in the study of economics.

What is the Division of Labour?

The Division of Labour refers to the specialization of workers in different parts of the production process. Instead of one person completing every single step to create a product, different people focus on specific tasks or stages.

  • Breaking down a complex job into simpler tasks.
  • Each worker performs a specific, limited set of tasks.
  • This contrasts with a single worker performing all tasks from start to finish.

Economic Benefits of Division of Labour

Proponents argue that dividing labour leads to several economic advantages:

  • Increased Skill and Dexterity: Workers become highly proficient and faster at their specific tasks through repetition and practice.
  • Saving of Time: Less time is lost switching between different tasks or tools.
  • Encouragement of Innovation: Workers focusing on narrow tasks can identify better methods or tools for their specific job.
  • Better use of Resources: Workers can be matched to the tasks they are best suited for.

Identifying the Pioneer

Let's look at the options provided:

  • Frank B. Gilbreth: Known for time and motion studies, contributing to industrial efficiency in the early 20th century, but not the first to propose the economic benefits of division of labour.
  • Eli Whitney: Famous for inventing the cotton gin and advocating for interchangeable parts, important for mass production, but his primary contribution isn't the first proposal of the economic benefits of division of labour itself.
  • Frederick W. Taylor: A pioneer of scientific management in the late 19th and early 20th centuries, focusing on optimizing workflow and productivity, but again, not the first to propose the core economic benefits of dividing labour.
  • Adam Smith: An 18th-century Scottish economist widely regarded as the father of modern economics.

Adam Smith famously discussed the Division of Labour in detail in his groundbreaking book, "The Wealth of Nations" (1776). He used the example of a pin factory to illustrate how dividing the process of pin-making into various simple tasks performed by different workers could dramatically increase productivity compared to a single worker performing all tasks. He clearly articulated the economic benefits like increased dexterity, saving time, and potential for technological innovation stemming from this specialization.

Therefore, Adam Smith is credited with being the first to extensively analyze and propose the economic benefits of the Division of Labour.

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Important Questions from Project Management

  1. An interface between the functional application and the data is

  2. The following statements relate to project network. Choose the correct code for the statements being correct or incorrect.

    Statement I: An activity cannot be represented by more than one arrow, but an arrow can represent one or more activities.

    Statement II : The activities in a critical path can be preponed or postponed.

  3. A public limited company has 9,00,000 shares outstanding at current market price of Rs. 130 per share. The company needs Rs. 2.25 crores to finance its proposed new project. The board of the company has decided to issue rights shares to raise the required money at Rs. 75 per share (as subscription price) to ensure that the rights issue is fully subscribed. How many rights are required to purchase a new share ?

  4. What are the characteristics of job shop production ?

    A. Different product types are produced

    B. Very large quantities are produced

    C. Single type of product is produced

    D. Low quantities of product are produced

  5. Match List I with List II

    LIST I

    (Project Network concepts)

    LIST II

    (Underlying meaning)

    A.Crashing an activityI.Length of the longest path through the project network
    B.Project NetworkII.It shows the time and cost when the activity is fully crashed
    C.Critical pathIII.It consists of a number of nodes and a number of arcs that connects two different nodes
    D.Crash pointIV.Taking special (costly) measures to reduce the duration of an activity below its normal value

    Choose the correct answer from the options given below:

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