Final answer:
Adam Smith emphasized the division of labor as the primary driver of improved productivity in his discussion of the pin factory.
Step-by-step explanation:
In his discussion of the pin factory, Adam Smith emphasized the division of labor as the primary driver of improved productivity. He observed that when tasks are divided and specialized among workers, they can produce a greater quantity of output. For example, in a pin factory, Smith noticed that one worker alone could make 20 pins in a day, but a small business of 10 workers, each specializing in certain tasks, could make 48,000 pins in a day.
The division of labor leads to increased productivity for three reasons. First, workers can specialize in tasks they are skilled at, becoming more efficient and faster in their work. Second, by dividing tasks, workers can save time switching between different tasks, leading to smoother and faster production processes. Third, specialized workers can develop innovative techniques and tools to improve their tasks, further enhancing productivity.