In Year 1, Capital Stock Was 6, Labor Input Was

question 42

Multiple Choice

In year 1, capital stock was 6, labor input was 3, and output was 12. In year 2, capital was 7, labor was 4, and output was 14. If shares of labor 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:

Resistance Point

The least favorable outcome that a negotiator is willing to accept before walking away from the negotiation table.

Accommodation Strategies

Conflict resolution methods where one party yields to the other's desires or demands in order to maintain harmony and avoid confrontation.

Bargaining Mix

The combination of topics, issues, and interests that are negotiated during a bargaining process.

Negotiation Steps

The structured phases or actions undertaken during the process of negotiating, typically including preparation, discussion, clarification of goals, negotiation towards a win-win outcome, agreement, and implementation.