Which of the following factors is NOT included in the formula for computing total factor productivity?
A) Cost of labor
B) Cost of capital
C) Cost of materials
D) Cost of energy inputs
E) Cost of inflation

Question

Quizplus · Accepted Answer

The formula for total factor productivity includes factors such as labor, capital, materials, and energy inputs. Inflation is not included in this formula as it is a measure of the increase in prices over time and does not directly relate to the efficiency of factors of production.

Which of the Following Factors Is NOT Included in the Formula