1. Define productivity.
2. Compare single factor productivity measure with total factor productivity measure.
3. What do we mean when we say productivity is a relative measure?
4. Various financial data for the past two years follow. Calculate the total factor productivity and the single-factor productivity measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?

		Last Year	This Year
Output:	Sales	$201,005	$202,015
Inputs:	Labor	$30,010	$40,010
	Raw materials	$34,775	$44,785
	Energy	$4,870	$5,890
	Capital	$49,700	$49,700
	Other	$1,870	$3,005