The method of constructing a measure of technological progress relies on which of the following assumptions?
A)each factor of production is paid its marginal product
B)population growth does not change
C)population growth is zero
D)the saving rate does note change

Question

Quizplus · Accepted Answer

The assumption that each factor of production is paid its marginal product is fundamental in constructing measures of technological progress, as it allows for the calculation of total factor productivity by attributing output changes to technological improvements rather than changes in input quantities.

The Method of Constructing a Measure of Technological Progress Relies