Which is a good example of an increase in total factor productivity?
A) a tax cut
B) good weather
C) a company reducing its workforce
D) better credit conditions

Question

Quizplus · Accepted Answer

Good weather can increase the productivity of agricultural and outdoor activities, leading to an increase in total factor productivity. A tax cut or better credit conditions may increase investment and consumption, but they do not directly impact productivity. Reducing a company's workforce may lead to lower productivity if it is not done strategically and efficiently.

Which Is a Good Example of an Increase in Total