Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — capital-augmenting technological progress
Concept & Option Breakdown
Standard Reference VerifiedCapital-augmenting technological progress refers to improvements that enhance the productivity and efficiency of physical capital goods. Replacing a wooden plough with a steel plough improves the quality, durability, and output capability of the capital equipment itself without altering the nature of the labor input directly.
Improving or upgrading physical machinery/tools represents an upgrade in capital productivity (capital augmentation).
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