The substitution of steel for wooden ploughs in agricultural production is an example of
-
A.
labour-augmenting technological progress
-
B.
capital-augmenting technological progress
-
C.
capital-reducing technological progress
-
D.
None of the above
Correct Answer:
B. capital-augmenting technological progress
Explanation:
The substitution of steel for wooden ploughs in agricultural production is an example of:
(b) capital-augmenting technological progress.
Explanation:
Capital-augmenting technological progress refers to improvements or innovations that increase the productivity or efficiency of capital goods (like tools, machinery).
Replacing wooden ploughs with steel ones enhances the effectiveness of the capital input in agriculture, allowing for better performance without increasing labor.
This is distinct from labor-augmenting progress, which improves labor efficiency.
Thus, substituting steel for wooden ploughs increases the productivity of capital, qualifying as capital-augmenting technological progress.
Click below to open Discussion & Feedback
0 Issues
Please
login to comment or Report Issues.