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

Question 74

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.

Correct Answer:

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