If the U.S. total factor productivity is 1.00 and China's is 0.33, then the U.S. capital per worker is 67 percentage points more productive than China's.

Question

Quizplus · Accepted Answer

Total factor productivity takes into account the efficiency of both capital and labor. Therefore, if the U.S. has a productivity level of 1.00 and China has a productivity level of 0.33, it means that the U.S. is 67 percentage points more productive overall. This includes both the capital per worker and the efficiency of labor.

If the US Total Factor Productivity Is 1