Growth in total factor productivity equals the
A) sum of resource growth and economic growth.
B) ratio of total outputs to total inputs.
C) ratio of total inputs to total outputs.
D) percentage change in per capita real GDP.
E) percentage change in output minus the percentage change in resources.

Question

Quizplus · Accepted Answer

Total factor productivity growth is measured as the percentage change in output minus the percentage change in inputs (resources). This reflects the efficiency gains in producing output beyond what can be explained by the increase in inputs alone.

Growth in Total Factor Productivity Equals the