What is the growth in resources when total factor productivity grows by 3.5 percent and the economy grows by 2.7 percent?
A)0.8 %
B)-2.7 %
C)3.5 %
D)-0.8 %
E)0.6%

Question

Quizplus · Accepted Answer

The growth in resources is calculated as the difference between the growth in total factor productivity (3.5%) and the growth in the economy (2.7%), which is 3.5% - 2.7% = 0.8%. Since the economy's growth is less than the productivity growth, the growth in resources is negative, hence -0.8%.

What Is the Growth in Resources When Total Factor Productivity