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27 September, 14:21

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.

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Answers (1)
  1. 27 September, 17:05
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    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.
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