Answer and Explanation:
1.Total productivity = output/input
For last year
Output = 200,000
Input = 30000+35000+5000+50000+2000
= 122000 dollars
Output/input = 200000/122000 = 1.64
For current year
Output = 220000
Input = 40000+45000+6000+50000+3000
= 144000
Output/input = 220000/144000
= 1.53
Percentage change = [(1.53-1.64)/11.64} x 100
= -6.70
Partial measure of labor
For last year
Output = 200000
Input = 30000
Output/input = 200000/30000 = 6.67
For current last
Output = 220000
Input = 40000
Output/input = 220000/40000
= 5.50
Percentage change = (5.5-6.67)/6.67*100
= -17.54%
Percentage measure of raw material
For last year
Output = 200000
Input = 35000
Output/input = 200000/35000 = 5.71
For current year
Output = 220000
Input = 45000
Output/input = 220000/45000 = 4.89
Percentage change = (4.88-5.71)/5.71 * 100
= -14.36%
Percentage measure of capital
For last year
Output = 200000
Input = 50000
Output/input = 200000/50000 = 4
Current year
Output = 220000
Input = 50000
Output/input = 220000/50000 = 4.40
Percentage change = (4.40 - 4.00)/4.40 x 100
= 10%
The overall percentage change for total productivity is negative, this tells us that productivity is on a decline. Partial measure of labor and raw material is decreasing but that of capital is increasing
