Embodied technical change results in
A) an increase in physical capital.
B) disembodied technical change.
C) an improvement in the quality of capital.
D) a decrease in labor productivity.

Question

Quizplus · Accepted Answer

Embodied technical change refers to improvements in the quality or efficiency of physical capital, such as machinery or equipment. This leads to an increase in productivity and output per worker, as the improved capital can produce more or better goods and services. Therefore, option A and D are incorrect because embodied technical change leads to an increase in labor productivity, not a decrease. Option B is incorrect because embodied technical change refers to changes in physical capital, not changes that do not involve physical capital.

Embodied Technical Change Results in