Question

For Adam Smith, the capacity for the division of labour and thus economic growth was principally dependent on:

The quality of the land.

The wealth of the land-owning class.

The extent of the market.

The concentration of trade in a small number of chartered companies in the colonies.

All of the above.

None of the above.

Answer 1

The division of labour is the separation of tasks in any economic system so that participants may specialize (specialization). Individuals, organizations, and nations are endowed with or acquire specialized capabilities and either form combinations or trade to take advantage of the capabilities of others in addition to their own. Specialized capabilities may include equipment or natural resources in addition to skills and training and complex combinations of such assets are often important, as when multiple items of specialized equipment and skilled operators are used to produce a single product. The division of labour is the motive for trade and the source of economic interdependence.

After the Neolithic Revolution, pastoralism and agriculture led to more reliable and abundant food supplies, which increased the population and led to specialization of labour, including new classes of artisans, warriors, and the development of elites. This specialization was furthered by the process of industrialisation, and Industrial Revolution-era factories. Accordingly many classical economists as well as some mechanical engineers such as Charles Babbage were proponents of division of labour. Also, having workers perform single or limited tasks eliminated the long training period required to train craftsmen, who were replaced with lesser paid but more productive unskilled workers.

Historically, an increasing division of labour is associated with the growth of total output and trade, the rise of capitalism, and the increasing complexity of industrialised processes.

So it basically depends on all the factors above. Hence ( E) part is a correct answer