Other Things Being Equal, a Technological Change That Raises the Value

question 66

Multiple Choice

Other things being equal, a technological change that raises the value of marginal product of capital raises the rental rate of capital because the

• A) demand curve for capital shifts leftward.
• B) supply curve of capital shifts rightward.
• C) demand curve for capital shifts rightward.
• D) supply curve of capital shifts leftward.

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Definitions:

Unfunded Mandate

A regulation or policy imposed by a higher authority (such as the federal government) on lower government levels or the private sector, without providing corresponding funds for implementation.

Grant-in-Aid

Financial assistance given by one level of government to another, often from the federal government to state or local governments, for a specific purpose.

Preemption

A doctrine in law where higher authority laws take precedence over laws created by lower levels of government.

Cooperative Federalism

A concept where national, state, and local governments interact cooperatively and collectively to solve common problems, rather than making policies separately.