Final answer:
According to Adam Smith, the primary factor driving improved productivity through the division of labor is specialization. When workers specialize in specific tasks, they become more skilled and efficient, leading to increased productivity.
Step-by-step explanation:
According to Adam Smith, the primary factor driving improved productivity through the division of labor is specialization. When workers specialize in specific tasks, they become more skilled and efficient, leading to increased productivity. Smith observed that when tasks in pin factories were divided among workers, each specializing in certain tasks, the overall production increased significantly.
Specialization allows workers to focus on their strengths and become highly proficient in their specific area. This allows them to perform their tasks more quickly and with less effort, resulting in increased productivity. For example, in the pin factory Smith observed, each worker was assigned a specific task such as straightening the wire or sharpening the ends. By focusing only on their assigned task, they were able to perform it more efficiently than if they had to do all the tasks themselves.
In addition to individual skill and efficiency, the division of labor also allows for the development of specialized machinery or tools that further enhance productivity. For instance, in a pin factory, specialized machines can be designed and used for specific tasks, making the production process even more efficient.