Economics · Technical Progress
What is the fundamental difference between 'Embodied' and 'Disembodied' technical progress?
- 1They are completely identical concepts with no theoretical distinction
- 2Embodied progress refers strictly to labour-saving technology, whereas disembodied progress refers to capital-saving technology
- 3Disembodied progress requires investment in new capital, whereas embodied progress raises productivity without investment
- 4Embodied progress requires investment in new capital goods, whereas disembodied progress increases the productivity of existing factors of production✓
Correct answer
Embodied progress requires investment in new capital goods, whereas disembodied progress increases the productivity of existing factors of production
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