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 capitalâ€"labor ratio.

Question

Business

Captain Crunch

4 October, 16:22

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 capitalâ€"labor ratio.

+1

Answers (1)

Know the Answer?

Mateo Hanna · Answer 1

The correct answer is letter "A": increased expenditures on education.

Explanation:

Total Factor Productivity (TFP) measures the total production of a region by dividing the total amount of output by the weighted average of inputs such as labor and capital. It represents growth in real output as a result of changes in labor and capital. Under such a scenario, changes in the expenditures for education would change the total factor of production since it has a direct impact on labor quality. The higher the expenses in education, the higher the quality of labor.

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 capitalâ€"labor ratio.

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 capitalâ€"labor ratio.