The substitution of steel for wooden ploughs in agricultural production is an example of
- (a) labour-augmenting technological progress
- (b) capital-augmenting technological progress ✓ UPSC's answer
- (c) capital-reducing technological progress
- (d) None of the above
Why the answer is (b)
• Replacing wooden ploughs with steel ploughs improves the quality and productivity of the capital equipment itself, so the same investment yields more output — capital-augmenting technological progress — option (b).
• Labour-augmenting progress (a) would raise output per worker through skills or organisation without changing the capital; capital-reducing (c) would need less capital.
• Hence option (b).
Why the other options are wrong
- (a) labour-augmenting technological progress
- The improvement is in the tool (capital), not in labour.
- (c) capital-reducing technological progress
- Capital is improved, not reduced.
- (d) None of the above
- Option (b) correctly describes it.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2015, held on 23 August 2015. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.