ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Total factor productivity is a measure of productive efficiency in that it measures how much output can be produced from a certain amount of inputs. It accounts for part of the differences in cross-country per-capita income.

Detailed explanation-2: -Total factor productivity (TFP) compares total outputs relative to the total inputs used in production of the output. As both output and inputs are expressed in term of volume indices, the indicator measures TFP growth. The change in production and input volumes is measured over a defined period (2010=100).

Detailed explanation-3: -Total factor productivity (TFP) is calculated by dividing an index of real output by an index of combined inputs of labor and capital.

Detailed explanation-4: -What is total factor productivity? Total factor productivity, commonly referred to as TFP, is an equation used in economics to measure the impact of technological advancements and changes in worker knowledge. It attempts to measure the effects that these changes have on the long-term output of an economic system.

Detailed explanation-5: -In economics, productivity refers to how much output can be produced with a given set of inputs. Productivity increases when more output is produced with the same amount of inputs or when the same amount of output is produced with less inputs.