What is the subject matter of economics? What role does the “division of labor” play in defining this subject matter?
The subject matter of economics deals with social science concerned with administration of scarce resources. These resources can be objects and services that are capable of satisfying human needs and wants in both direct and indirect ways. This can be by helping to produce other objects and services whose use satisfies human wants. The administration of resources does not always create economic problems. There are lots of these resources that are more than enough to satisfy all of human wants and needs completely depend of them. One such resource example is “Air”. Such type of resources are known as free resources where
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Such an individuals’ to meet their needs and desires, would have to depend on their limited capacity to work and would confront the issue of how to best manage their energy and distribute their time between leisure and various kinds of work. This is identified as a problem of managing the scares resources of individuals’ time and energy but it is their personal issue that they may be left to resolve as best as they can. This is simply because their individual solutions to these issues have no effect or impact to other individuals’ goodwill. Division of Labour is the term that was first used by Adam Smith to describe the distribution and separation of the process of manufacturing into several well defined and simple operations that are later delegated to specific hands/workers or machines to perform. The quality and quantity of work undertaken by an organized workforce with the use of division of labor is far more superior to the work done through a non-divided labor. The use of Division of Labor principle helps increase productivity far better than an undivided. There are several reasons that help increase productivity with the use of this principle. Firstly, the workers tend to be very active, savvy, and skillful and therefore effective in their individual tasks allocated to them individually. This is simply because with the use of skill based workers it very efficient for the workers to take adequate time required to fulfill a specialized task and