Which of the following is true about total factor productivity (TFP)?
A)it tells us how productive capital and labor are
B)it is a more general and better measure of productivity than labor productivity
C)it is not directly measurable
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Total factor productivity (TFP) indeed encompasses the productivity of both capital and labor (A), is considered a more comprehensive measure of productivity compared to just labor productivity (B), and is not directly measurable but rather inferred from data on inputs and outputs (C).

Which of the Following Is True About Total Factor Productivity