Final answer:
The division of work into several parts with different responsibilities for each worker is known as the Division of Labor, which increases productivity by allowing specialization.
Step-by-step explanation:
The concept of dividing work into several parts and giving each worker a different responsibility is referred to as the Division of Labor. This concept significantly increases production as it allows for workers to specialize in particular tasks, streamlining the production process and enhancing productivity. Adam Smith, in his observations of pin factories, illustrated that a group of ten workers dividing the eighteen tasks needed to make pins could produce a substantially greater number of pins in a day compared to each worker attempting to produce the pins independently. The division of labor advances economic activity by enabling workers to excel in specific functions and trade the results of their labor, ultimately raising standards of living and connecting people to the larger economy.