An increase in the quality of capital is a result of
A) population growth.
B) disembodied technical change.
C) embodied technical change.
D) an increase in the labor force.

Question

Quizplus · Accepted Answer

Embodied technical change refers to improvements in the quality of capital goods themselves, such as the development of new and better machinery. Therefore, an increase in the quality of capital is a result of embodied technical change rather than population growth, disembodied technical change, or an increase in the labor force.

An Increase in the Quality of Capital Is a Result