Which of the following explain(s) differences in total factor productivity?
A) institutions
B) human capital
C) infrastructure
D) legal structure
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these factors can play a role in differences in total factor productivity. Institutions, such as property rights and contract enforcement, can affect the incentives for investment and innovation. Human capital, such as education and skills, can improve the quality of labor and lead to greater efficiency. Infrastructure, such as transportation and communication networks, can reduce costs and increase accessibility to markets. Legal structure, such as competition policy and intellectual property protection, can also influence the incentives for innovation and investment. Collectively, these factors can shape the productivity of an economy and contribute to differences in economic growth and development.

Which of the Following Explain(s) Differences in Total Factor Productivity