The substitution of steel for wooden ploughs in agricultural production is an example of

The substitution of steel for wooden ploughs is an example of capital-augmenting technological progress because it involves a qualitative improvement in the capital tool, thereby increasing the efficiency and output potential of the capital input. It is not labour-augmenting progress, as that term specifically refers to advancements like education or specialized training that increase the inherent productivity of the workforce itself. The core concept being tested is the classification of technological change based on which factor of production’s productivity is enhanced within a production function.