All of the Following Are Problems Associated with Total Factor

question 26

Multiple Choice

All of the following are problems associated with total factor productivity EXCEPT:

• A) it is a useful tool to measure efficiency.
• B) managers find the calculation complex.
• C) it converts all factors into dollar factors.
• D) it does not consider the exact contribution of an input to an output.
• E) each input is typically measured in different units.

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Definitions:

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to negative outcomes for society.

Income Inequality

The uneven distribution of income within a population, leading to disparities in wealth and economic opportunities.

Private-Sector Risk

The exposure to uncertainty and potential financial loss faced by businesses and investors outside of government control.

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.