Which of the following would result in an increase in total factor productivity, assuming all other variables are held constant?
A)The quantity of outputs increases.
B)The company uses more total inputs.
C)The company uses lower quality inputs.
D)Current technology becomes obsolete.
E)Quantity of inputs increases and costs of inputs stays the same.

Question

Quizplus · Accepted Answer

An increase in the quantity of outputs, while holding the quantity of inputs constant, indicates an improvement in total factor productivity, as it reflects more efficient use of inputs.

Which of the Following Would Result in an Increase in Total