Total Factor Productivity

question 39

Multiple Choice

Total factor productivity:

• A)is a ratio of the value of output to the value of all key inputs.
• B)is the same thing as the production volume variance.
• C)focuses on an individual input.
• D)includes materials and labor but not overheaD.Total factor productivity includes a number of inputs rather than just one.

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Definitions:

Productivity Growth

The rate at which an economy's or an industry's output per unit of input (labor, capital, etc.) increases over time, indicating improvement in efficiency.

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, often leading to an imbalance in the transaction.

Health Care Costs

The total expenditures for services and products related to the treatment and prevention of disease or the maintenance of health.

Overallocation

A situation where resources are allocated in excess to a particular good or service, often leading to inefficiency and waste.