"Embodied technical change" is said to occur when

Question

Quizplus · Accepted Answer

Embodied technical change refers to the introduction of new and more productive capital equipment, which replaces older machines. This type of technical change is embodied in the new capital equipment and leads to an increase in labor productivity. Option B is incorrect because increasing the capital-labor ratio does not necessarily imply that embodied technical change has occurred, as it could happen due to a reduction in labor. Options C, D and E refer to other forms of technical change, such as organizational or managerial changes, which are not related to embodied technical change.

"Embodied Technical Change" Is Said to Occur When