In Year One,capital Stock Was 6,labour Input Was 3,and Output

question 21

Multiple Choice

In year one,capital stock was 6,labour input was 3,and output was 12.In year two,capital was 7,labour was 4,and output was 14.If shares of labour and capital were each 1/2,between the two years,total factor productivity:

• A) increased by 1/12.
• B) increased by 1/18.
• C) decreased by 1/12.
• D) decreased by 1/18.

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Definitions:

Income

The monetary payment received for goods or services, or from other sources, such as wages or investments.

Intermediation Revenue Model

The different methods by which third parties such as brokers (or “middlemen”) can generate money.

Commission

A fee paid for provided services typically a percentage of the item sold.

Home Renters

Individuals or groups who lease living spaces from landlords or property management companies for a specified period.