The substitution of steel for wooden ploughs in agricultural production is an example of
This questions was previously asked in
UPSC CSP Previous Year Paper (2015)
labour-augmenting technological progress
Incorrect Answercapital-augmenting technological progress
Correct Answercapital-reducing technological progress
Incorrect Answer None of the above
Incorrect AnswerExplanation:
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. Steel is costlier than wood and steel also support mechanisation there by reducing the requirement of labor. 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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By: Abhipedia