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AP Macroeconomics: Chapter 4 Homework Adam Smith "Wealth or Nations" To take an example, therefore. from a very trifling manufacture; but one in which the division Of labor has been very often taken notice of. the track of the pin-maker, a workman not educated to this business (which the division of labor has rendered a distinct trade), nor acquainted With the use Of the mxhincry employed in it (to the invention of which the same division Of labor has probably given occasion), could scarce, perhaps, with his utmost industry, make I pin in a day. and certainly could not make 20. But the way in which this business is now caried on, not mly the whole work is a peculiar trade. but it is divided into a number Of branches, Of which the greater part are likewise peculiar trades. One man draws out the wire. another straights it. a 3rd eutS it, a 4th points it. a 5th it at the top for receiving the head; to make the head requires two or three distinct operations; to put it on, is a peculiar business, to whiten the pins is another. it is even a trade by itself to put them into the paper, and the important business of making a pin is, in this manner. divided into about 18 distinct operations, which, in some manufacturers. are all performed by distinct hands, in others the sarne tnan will sometimes perform 2 or 3 of them. I have seen a small manufacturer of this kind where ten men only were employed, and whcrc some of them consequently performed 2 3 distinct operations. But though they were very p-o, and therefore indifferently accommodated with the ncccssaD machinery, they could, when they exerted themselves. make about 12 pounds Of pins in a day. There are in a pound upwards of 4.000 pins of a middling size. Those 10 persons. therefore. could make among them upwards of 48,000 pins in a day. Each person, therefore. making a 10th part pins. might bc considered as making 4,800 pins in a day. But if they had all wrought separately and irdcpcndcntly, and without any of them having been educated to this peculiar business. they certainly could not each Of them have made 20. not one pin in a day. that is what they are at present capable of performing, in consequence of a proper division and combination of their different operations. I. How much more productive is the specialized worker as opposed to the 2. What happens to thc value ofeach worker? Why? 3. Therefore, how does specialization impact production? How does it impact wages?