Embodied technical change is one reason why
A) human capital is more valued in an economy than physical capital.
B) the quality of capital had decreased.
C) labor productivity has increased over time.
D) increases in population decrease labor productivity.

Question

Quizplus · Accepted Answer

Embodied technical change refers to the type of technological advancement that is incorporated into capital goods such as machinery, equipment, and buildings, as well as into the skills, knowledge, and education of workers. This type of technical change has been linked to increases in labor productivity over time. Therefore, choice C is the best answer. Human capital (choice A) is indeed more valued than physical capital in economies that have undergone embodied technical change, but this statement alone does not provide a comprehensive answer. Choice B is incorrect because embodied technical change typically results in an increase in the quality of capital rather than a decrease. Choice D is irrelevant to the topic of embodied technical change.

Embodied Technical Change Is One Reason Why