Total factor productivity is
A)the quantity of output per worker.
B)the quantity of output per unit of capital.
C)the ratio of inputs divided by outputs.
D)the quantity of output per unit of input.

Question

Quizplus · Accepted Answer

Total factor productivity is a measure of efficiency that shows the quantity of output produced per unit of input, such as labor, capital, and materials. It measures how efficiently inputs are being used in the production process, and thus represents the overall productivity of an economy or industry. Therefore, the correct answer is D, "the quantity of output per unit of input". Choices A, B, and C are all incorrect because they do not capture the full concept of total factor productivity.

Total Factor Productivity Is