The Table Below Represents Freedonia's Macroeconomic Data for 2002 and 2003

question 103

Multiple Choice

The table below represents Freedonia's macroeconomic data for 2002 and 2003.
$$\begin{array} { c c c c } \text { Year } & \text { Y } & \mathrm { K } & \mathrm { N } \\\hline 2002 & 2000 & 1700 & 70 \\2003 & 2100 & 1785 & 75 \\\hline\end{array}$$
Suppose that the production function is given by Y = AK?.²? ??.??.Between 2002 and 2003,total factor productivity of Freedonia's economy increased by

• A)-1.5%.
• B)5.0%.
• C)5.5%.
• D)12.7%.

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Definitions:

Cost of Goods Sold

The total cost of manufacturing or acquiring the products that were sold during a given period.

Operating Expenses

Expenses incurred in the course of regular business operations, such as wages, rent, and utilities.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' share.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of the company's stock, rather than cash.