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

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Definitions:

Nonshared Environment

Unique aspects of a person’s environment and experience that are not shared with family members.

Individualist Culture

A culture that emphasizes personal independence and the self, valuing personal achievements and autonomy over group goals.

Individualist Culture

A culture that emphasizes personal achievements and independence, encouraging individuals to prioritize their own goals over those of the group.

Group Harmony

Group harmony refers to the state of peaceful coexistence and cooperation within a group, often prioritized in collectivist cultures where the well-being of the group is considered above individual interests.