Non-neutral technological change is more valuable to labor than neutra

Non-neutral technological change is more valuable to labor than neutral technological change.

Indicate whether the statement is true or false

ANSWER

True . Neutral technological change leaves the proportion in which inputs are used (for example, the labor/capital ratio) unchanged, but non-neutral technological changes are innovations that alter the labor/capital ratio. The labor/capital ratio used to produce a given level of output falls after non-neutral technological change. Therefore, non-neutral technological change is more valuable to labor than neutral technological change.