Joey's snow shoveling service, with Joey being the only employee, recently traded in his snow shovel for a gasoline-powered snow blower. Joey still requires one worker per blower; however, more snow is now moved in the same amount of time as before. This is an example of .

A. organizational change.
B. neutral technical change.
C. labor saving technical change.
D. nonneutral technical change.

The correct answer is letter "B": neutral technical change.

Explanation:

In Business, technical change refers to the fluctuations in production as the result of implementing new technological equipment. A technical change could be neutral and non-neutral. Neutral Technical changes are those that do not save in capital either in labor. When there are changes in any of those factors, there is non-neutral technical change.

After Joey changed his snow shovel to the new gasoline-powered snowblower, he still needs one worker per blower (more labor investment). Then, he will be investing more money in the snowblowers because they need gasoline (more capital investment). So, the change Joey made represents a neutral technical change.

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