Question 90
AOptions
BSolution
Technological progress can be classified based on how it affects the productivity of different factors of production (labor and capital). When wooden ploughs are substituted with steel ploughs in agricultural production, it implies the adoption of a more advanced, durable, and efficient form of capital. The steel ploughs, being superior, enhance the productivity of the capital input itself. This makes the existing capital more effective or productive, which is termed 'capital-augmenting technological progress'.
It is not primarily 'labour-augmenting' because the direct impact is on the tool (capital), not necessarily making labor more productive in isolation. It is definitely not 'capital-reducing' as it involves using more advanced and effective capital.
CStrategy
For economic concepts related to technological progress, understand how new technologies impact the efficiency or productivity of capital and labor. Focus on the primary factor whose productivity is directly enhanced by the innovation.
DSyllabus Analysis
This question falls under the Indian Economy section of the UPSC Prelims syllabus, specifically related to economic growth and technological change.
EQuestion Analysis
Medium. Requires a clear understanding of economic terminology related to production and technology.