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ADAMSMITH

THEWEALTHOFNATIONS

EFFECTSOFDIVISIONOFLABOR:
increased
efficiency
oflabor
refinementofskill(s)
leadsto
specialization
(manualskills)
innovation-applicationofmachinery

OUTCOMES/RESULTSOFDIVISIONOFLABOR:
1. increasedproductionoflabor
2. separationoftradefromindustry
3. advancementofsocietiesfromprimitivetomodern

REASONSFORTHEOUTCOMES:
1. DOLinvolvesdexterityofworkmen
2. time-saving
3. applicationofmachines

LIMITATIONS/PREREQUISITEOFDOL:
1. sufficientlylargemarket
2. advancementintransportationandcommunication
3. theremustbeafreemarket

*SURPLUS*
*PRIVATEFIRMS/CORPORATIONS*

FUNCTIONSOFGOVERNMENT:
1. providedefensefromaggression
2. dutyofestablishingexactadministrationofjustice
3. maintenanceofpublicworks

TYPESOFG/SANDTHEIRVALUE:
utility
exchange

*MINIMALSTATE*
*LAISSEZ-FAIRE*