An Advance in Technology That Increases Productivity and an Increase

question 253

Multiple Choice

An advance in technology that increases productivity and an increase in the working-age population results in a

• A) rightward shift of the labor supply curve.
• B) rightward shift of the labor demand curve.
• C) rightward shift of the labor demand curve and of the labor supply curve.
• D) no change to the production function.

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Definitions:

Vivid Memory

A particularly clear and detailed memory of an event or moment, often with emotional significance, that remains strong over time.

Ignoring Base Rates

Involves disregarding statistical information in favor of anecdotal evidence when making judgments.

Availability Bias

A cognitive bias that makes people overestimate the importance of information that is available to them, leading to a misrepresentation of reality.

Gambler's Fallacy

The erroneous assumption that an event occurring with greater regularity than usual in a specific timeframe will occur less often in the future, and the opposite.