According to Adam Smith, how does the division of labor lead to prosperity?(2 points)

Question

Responses

Dividing labor would limit the number of items sold
Dividing labor would limit the number of items sold

Dividing labor would decrease profits
Dividing labor would decrease profits

Dividing labor would make productivity increase

Answer 1

Dividing labor allows workers to specialize in specific tasks, increasing their productivity and efficiency. This leads to a greater overall output of goods and services, thus increasing prosperity.