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If Technological Change in an Industry Results, at Given Relative

Question 25

Multiple Choice

If technological change in an industry results, at given relative factor prices, in a reduction in the amount of both capital and labor used to produce a given amount of output, but the reduction in labor requirements is greater than the reduction in capital requirements, this technological change would be called __________ in nature.


A) neutral
B) labor-saving
C) capital-saving
D) both labor-saving and capital-saving

Correct Answer:

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