Adam Smith quote from The Wealth of Nations. What is this saying? What is the division of labor? Why is it limited by the extent of the market?
In: Economics
Division of labor is doing different jobs. There was a time when everybody grew their own food, baked their own bread, made their own clothes, built their own cabin, etc. For an economy to develop into one where there are bakeries and tailors and carpenters depends on a market where people can sell services and goods in return for money they can then spend on other goods and services.
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