Long-run demotivation from repetitive specialization

Steps:

• Specialization initially boosts productivity through focused tasks and efficiency gains.
• Short-term output rises as workers master simple roles quickly.
• Over time, repetitive work causes boredom and reduced effort.
• This leads to long-run productivity decline despite initial improvements.

Why D is correct:

• Repetitive tasks in specialization cause worker boredom, reducing motivation and output per Adam Smith's division of labor, where overspecialization erodes enthusiasm.

Why the others are wrong:

• A: Pay increases are not required for sustained productivity; motivation issues persist regardless.
• B: Capital needs relate to production capacity, not the observed long-run worker output fall.
• C: Specialization builds specific skills, not loses them, contradicting initial productivity rise.

Final answer: D