Technical change that results in an improvement in the quality of capital is known as disembodied technical change.

Question

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Disembodied technical change refers to improvements in production that are not related to changes in physical capital or inputs, but rather improvements in how existing inputs are used, such as through better management practices or technological innovations that can be applied without altering the physical capital. Improvement in the quality of capital itself would be considered embodied technical change, as it involves changes in the physical assets.

Technical Change That Results in an Improvement in the Quality