Future Business Leaders of America (FBLA) Business Management Practice Test

Who famously outlined the benefits of the division of labor?

1. Karl Marx

2. Abraham Maslow

3. Adam Smith

4. Frederick Taylor

The correct answer is: Adam Smith

Adam Smith is recognized for his influential work on the division of labor, particularly in his seminal book, "The Wealth of Nations," published in 1776. He articulated how dividing tasks among workers leads to increased efficiency and productivity. Smith illustrated this concept with the example of a pin factory, where specialization allows workers to produce far more pins collectively than if each worker attempted to make a pin independently. This division of labor not only enhances productivity but also allows workers to develop specific skills related to their particular tasks, further optimizing performance and contributing to economic growth. Smith's insights laid the foundation for modern economic theory and emphasized the importance of specialization in enhancing the efficiency of production processes. In this context, while other figures like Karl Marx, Abraham Maslow, and Frederick Taylor contributed significantly to various aspects of economics, psychology, and management, it is Adam Smith who is specifically credited with outlining the advantages of the division of labor in the context of economic productivity.