Two of the most important factors that influence total factor productivity are

Question

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Total factor productivity refers to the efficiency with which inputs (such as labour and capital) are used to produce output. The stock of knowledge and level of technology are crucial factors that determine how efficiently inputs are used in the production process. An economy that has access to the latest technology and knowledge is likely to be more productive than one that does not.

Answer: C
 The quantity and quality of labour are important factors in determining productivity, but capital accumulation and total investment levels are also crucial. The availability of capital goods such as machinery and equipment can boost productivity, especially if they are up to date and efficient. Likewise, investment in research and development can contribute to the development of new technologies and knowledge, which can further boost productivity.

Two of the Most Important Factors That Influence Total Factor