In the context of Adam Smith's theory of the division of labor, which of the following correctly explains the impact of this concept on national output?
1
The division of labor leads to an increase in output per worker, as specialized tasks lead to greater efficiency and innovation, which boosts national productivity.
2
The division of labor results in a decrease in productivity since workers become more specialized and lose the ability to work in other areas.
3
It leads to a decline in wealth creation due to the rise in unemployment as fewer workers are needed for the specialized tasks.
4
It relies on the availability of natural resources and does not significantly contribute to technological advancements or labor productivity.