A Technological Change That Raises the Value of Marginal Product

question 351

Multiple Choice

A technological change that raises the value of marginal product of capital ________ the rental rate of capital because the ________.

• A) raises; supply curve of capital shifts leftward
• B) lowers; supply curve of capital shifts rightward
• C) raises; demand curve for capital shifts rightward
• D) lowers; demand curve for capital shifts leftward

---

Definitions:

Standard Of Care

The degree of caution and concern an ordinary, prudent person should take in specific circumstances, often used as a benchmark in legal and medical fields to assess performance or negligence.

Common Carrier

A carrier that is licensed to provide transportation services to the public.

Strictly Liable

Being legally responsible for damages or loss, irrespective of fault or intent.

Bailment

The transfer of possession of property from one person to another under agreement that the property will be returned or otherwise disposed of according to the terms of the agreement.