Changes that can increase measured total factor productivity include:
A) increased expenditures on education.
B) regulations requiring reductions in pollution.
C) regulations requiring increases in worker safety.
D) increases in the capital-labor ratio.

Question

Quizplus · Accepted Answer

Increased expenditures on education can enhance the skills and efficiency of the workforce, leading to higher productivity without necessarily increasing the amount of labor or capital, thus increasing total factor productivity.

Changes That Can Increase Measured Total Factor Productivity Include