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| | Definition |
 | | We can think of this as a virtuous circle, in which intensified division of labor raises labor productivity, increasing incomes, increasing demand, creating larger markets which then afford the opportunity for further increase in the division of labor, starting the spiral over again. |
 | | Modern virtuous circle theorists would all agree with Smith that the government ought not do anything to cause the cycle to be broken, but some of the twentieth-century virtuous circle theorists might call on the government to remove barriers that could arise in the private sector. |
 | | The "virtuous circle:" growth increases the scale of production, which allows the work of production to be organized in more collaborative ways, which increases labor productivity, which in turn further increases the scale of production, starting the cycle again. |
| william-king.www.drexel.edu /top/prin/txt/gro/groOH.html (996 words) |
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