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The substitution of steel for wooden ploughs in agricultural production is an example of
labour-augmenting technological progress
capital-augmenting technological progress
capital-reducing technological progress
None of the above
Substitution of steel can be considered as the substitution of a lesser machine by a better machine. In this case, replacement of wooden by steel, increases the productivity of plough. This encourages steel production. Hence it is a capital-augmenting technological progress.
Labor augmenting is technology that increases skills and productivity of existing labor.
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