Correct. The answer is a. Smith estimated that using a division of labor, 10 men could make about 12 pounds of pins per day, which worked out to 4,800 pins per worker per day.

Incorrect. The answer is a. Smith estimated that using a division of labor, 10 men could make about 12 pounds of pins per day, which worked out to 4,800 pins per worker per day.

1. According to Smith, by how much did the division of labor increase productivity in the pin industry?

Correct. The answer is d. A critic might argue that, as productivity rose, fewer and fewer workers would be needed to meet market demand for pins.

Incorrect. The answer is d. A critic might argue that, as productivity rose, fewer and fewer workers would be needed to meet market demand for pins.

2. Which of these negative effects might an eighteenth-century critic of Smith have attributed to the division of labor Smith described?