- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics
- Reading 11. Economic Growth and the Investment Decision
- Subject 3. Production Function and Growth Accounting
CFA Practice Question
An increase in TFP:
B. affects the relative productivity of labor.
C. does not affect the relative productivity of the inputs.
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. |