The substitution of steel for wooden ploughs in agricultural production is an example of
[UPSC Civil Services Exam – 2015 Prelims]
(a) labour-augmenting technological progress
(b) capital-augmenting technological progress
(c) capital-reducing technological progress
(d) None of the above
- Capital refers to capital goods such as manufacturing plants, machinery, tools, or any equipment that can be used to produce other goods.
- The substitution of steel for wooden ploughs in agricultural production increases the productivity thereby encourages steel production.
- Hence it is capital-augmenting technological progress.
- Labour-augmenting is the technology that increases the skills and productivity of the existing labour.