Total Factor Productivity

question 153

Multiple Choice

Total factor productivity:

• A)is the amount of output produced from a given amount of factor inputs.
• B)is not an essential element in long-run growth.
• C)is less important than technological progress.
• D)cannot be used to explain how contributions of factors of production affect a country's growth.

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Definitions:

Bond Redemption

The process in which a bond issuer returns the bond's principal amount to the bondholders and terminates the bond.

Straight-Line Method

A method of calculating depreciation or amortization by evenly distributing the cost of an asset over its useful life.

Premium on Bonds Payable

The excess amount over the face value for which a bond is sold, indicating that it was issued at a higher rate than its nominal value.

Discount on Bonds Payable

The difference by which a bond's market price is less than its principal amount or face value, effectively increasing the bond's yield.