An increase in total factor productivity could be the result of
A) adverse weather.
B) the addition of new machinery.
C) new hires.
D) the introduction of new manufacturing methods.

Question

Quizplus · Accepted Answer

An increase in total factor productivity refers to an increase in the efficiency with which all inputs (capital, labor, technology, etc.) are used together in the production process to produce output. The introduction of new manufacturing methods can lead to improved efficiency and productivity, resulting in an increase in total factor productivity. Adverse weather, new hires, and the addition of new machinery may affect productivity, but may not necessarily result in an increase in total factor productivity.

An Increase in Total Factor Productivity Could Be the Result