Use the Data in the Exhibit to Complete a and B

question 88

Essay

Use the data in the exhibit to complete a and b.
Exhibit: Factors of Production Data $$\begin{array} { l r c c c } \text { Period } & Y & K & L & \text { Share of Labor in Output } \\1 & 100 & 200 & 100 & 0.5 \\1 & 106 & 205 & 102 & 0.5 \\3 & 111 & 210 & 104 & 0.5 \\4 & 110.5 & 215 & 104 & 0.5 \\5 & 110 & 220 & 104 & 0.5\end{array}$$ a. Compute and report the value of growth in total factor productivity $( ( A t - A t - 1 ) / A t - 1 )$ in each period from periods 2 through 5 . If the value of A is 1.000 in period 1 , also report the value of A in each period.
b. Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanati on.

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Definitions:

Reward System

A structured plan designed to provide benefits, either monetary or non-monetary, to individuals for achieving specific goals or benchmarks.

Autocratic

A leadership style characterized by individual control over all decisions and little input from group members.

Hierarchical

Related to a system or organization in which people or groups are ranked one above the other according to status or authority.