Use the following to answer questions 8-11:
Figure 13.1
-(Figure 13.1) There is a decrease in total factor productivity. Which graph best illustrates this change?
A) (a)
B) (b)
C) (c)
D) (d)

Question

Use the following to answer questions 8-11:
Figure 13.1 
-(Figure 13.1) There is a decrease in total factor productivity. Which graph best illustrates this change?
A) (a) 
B) (b) 
C) (c) 
D) (d)

Quizplus · Accepted Answer

Total factor productivity is the ratio of output to the combined inputs of labor and capital. A decrease in total factor productivity means that output is decreasing relative to the inputs of labor and capital. Graph (a) shows a decrease in output relative to the inputs of labor and capital, so it best illustrates this change.

Use the Following to Answer Questions 8-11