Suppose That a New Invention Increases the Marginal Productivity of Labor,shifting

question 425

Multiple Choice

Suppose that a new invention increases the marginal productivity of labor,shifting labor demand to the right.Such an invention would be an example of

• A) labor-saving technology.
• B) labor-augmenting technology.
• C) Luddite technology.
• D) supply-shifting technology.

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Definitions:

Defensive Attribution

Defensive attribution is a psychological process in which individuals attribute causes for events in a way that defends their self-esteem or minimizes their feelings of vulnerability.

Self-Serving Bias

A common tendency for individuals to attribute their successes to personal characteristics and their failures to external factors.

Self-Effacing Bias

The tendency to downplay one's own success or attribute positive outcomes to external factors rather than to one's own efforts or abilities.

Rationalization Attribution

The process of explaining an individual's behavior with logical, but not always true, reasons to justify actions or opinions.