If Technological Change in an Industry Results, at Given Relative

Multiple Choice

If technological change in an industry results, at given relative factor prices, in a reduction in the amount of both capital and labor used to produce a given amount of output, but the reduction in labor requirements is greater than the reduction in capital requirements, this technological change would be called __________ in nature.

A) neutral
B) labor-saving
C) capital-saving
D) both labor-saving and capital-saving