CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

An increase in TFP:

A. affects the relative productivity of capital.
B. affects the relative productivity of labor.
C. does not affect the relative productivity of the inputs.
Correct Answer: C

It represents a higher level of technology.

User Contributed Comments 2

User Comment
kei1122 Why it doesnt affect the productivity of labor?
akirchner1 Because labor is an input.
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