In the formula used to measure the growth rate of multifactor productivity,the contribution of labor is represented by
A)bn.
B)bk - bn.
C)y - bk.
D)(1 - b)n.

Question

Quizplus · Accepted Answer

According to the formula for growth rate of multifactor productivity, Labor productivity (LP) is represented by (y - bk) and Total factor productivity (TFP) is represented by (1 - b)n. Therefore, the contribution of labor can be calculated by subtracting the TFP contribution from the overall multifactor productivity growth rate, which is represented by (1 - b)n. This gives us the option (D) - (1 - b)n as the correct answer.

In the Formula Used to Measure the Growth Rate of Multifactor