Q. The substitution of steel for wooden ploughs in agricultural production is an example of (UPSC Prelims 2015)
Answer:
capital-augmenting technological progress
Notes: The correct answer is
[B] capital-augmenting technological progress. In economics, technological progress is classified based on which factor of production becomes more efficient or "augmented."
- Capital-Augmenting Progress (Statement B – Correct): This occurs when a new technology makes capital (tools, machinery, equipment) more productive. A steel plough is more durable, efficient, and faster than a wooden one. By replacing wood with steel, the "quality" of the capital improves, allowing for higher agricultural output using the same or a similar amount of capital investment. It "augments" the efficiency of the capital itself.
- Labour-Augmenting Progress (Statement A – Incorrect): This refers to technology that increases the productivity of labor, making workers more efficient (e.g., a person using a computer instead of a typewriter). While a steel plough might save labor time, the primary change here is the qualitative improvement of the physical tool (capital).
- Capital-Reducing Progress (Statement C – Incorrect): This would imply a technology that allows the same output to be produced with less capital. While a steel plough is more efficient, it represents an advancement in the capital stock rather than a reduction of it.
Key Economic Context:
- Capital in Agriculture: In traditional economic models, tools like ploughs, tractors, and irrigation systems are considered "Fixed Capital."
- Technological Change: Innovation that allows for more output from the same input is the driver of economic growth. The shift from organic/wooden tools to inorganic/metal tools was a hallmark of the transition to modern intensive agriculture.