Which of the following is the correct mathematical expression to calculate a benchmark total factor productivity?
A) Quantity of output produced in current year ÷ Costs of inputs at current year prices that would have been used in previous year to produce current year output
B) Quantity of output produced in previous year ÷ Costs of inputs at current year prices that would have been used in previous year to produce current year output
C) Quantity of output produced in current year ÷ Costs of inputs at previous year prices that would have been used in previous year to produce current year output
D) Quantity of output produced in previous year ÷ Costs of inputs at previous year prices that would have been used in previous year to produce current year output

Question

Quizplus · Accepted Answer

Total factor productivity is calculated by dividing the quantity of output produced by the costs of inputs, using current year prices to reflect the current economic conditions.

Which of the Following Is the Correct Mathematical Expression to Calculate