Discuss how Adam Smith developed the concept of the division of labor.

Adam Smith, often referred to as the "father of modern economics," introduced the concept of the division of labor in his book "The Wealth of Nations." The division of labor breaks down complex tasks into simple, specialized tasks for increased efficiency and productivity. Smith observed this phenomenon in industries such as pin manufacturing, leading him to identify factors contributing to increased productivity through the division of labor, including specialization, saving time by not switching tasks, and the development of labor-saving machinery. This concept has been fundamental in shaping modern economic theory, influencing production, organization, and trade. Today, the division of labor continues to play a significant role, forming the basis for modern manufacturing processes and promoting economic growth and improved living standards through specialization and cooperation among workers, industries, and nations.