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

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1 Answers

(b) Capital-augmenting technological progress results in the more productive use of existing capital goods; for example, the substitution of steel from wooden ploughs in agricultural production.

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