If it is cheaper in the long run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of
A) a capital-using technology.
B) a capital-saving technology.
C) capital consumption.
D) private capital ﬂows.

Question

Quizplus · Accepted Answer

The use of a new metal plow that lasts a long time is a capital-saving technology, as it ultimately reduces the need for frequent replacement and therefore saves on capital costs in the long run.

If It Is Cheaper in the Long Run to Use