Growth in total factor productivity equals the _____.
A)sum of resource growth and economic growth
B)ratio of total output to total input
C)ratio of total input to total output
D)percentage change in per capita real GDP
E)percentage change in output minus the percentage change in resources

Question

Quizplus · Accepted Answer

Total factor productivity measures the efficiency with which inputs (resources) are transformed into outputs. Therefore, growth in total factor productivity can be calculated as the percentage change in output (economic growth) minus the percentage change in inputs (resource growth). This means that choice E (percentage change in output minus the percentage change in resources) is the correct answer.

Growth in Total Factor Productivity Equals the _____