Adam Smith

1. Because the division of labor is born from the power of market exchange, it is also limited by market exchange's limits. For example, a very small market offers little incentive to specialize, and some industries can only be in cities. In some rural areas, each farmer has to be butcher and baker. Those who specialize do so broadly: carpenter is also "joiner, a cabinet maker, carver, wheelwright, ploughwright, a cart and wagon maker." Thus industry complicates near areas of easy transport: waterways make it cheaper, and land travel is can prohibitively expensive. The division of labor is splitting different types of work so that people can specialize in a specific kind of work, and allows production technologies to only be needed once than for everyone. However, mental mutilation is a factor, though Smith recommends education as a rectifying formula. Human propensity to truck, barter, and exchange. Better to create one good, though this isn't possible in small markets.

So goes my study guide, through #40 and beyond. I'm ready for you, POEC final.