UPSC Prelims 2015 GS Paper I · Q90 of 100 Economy medium

The substitution of steel for wooden ploughs in agricultural production is an example of

  1. (a) labour-augmenting technological progress
  2. (b) capital-augmenting technological progress ✓ UPSC's answer
  3. (c) capital-reducing technological progress
  4. (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.

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