Chapter 7R, Problem 14MCQ

To determine

To find:

Factor that lead to long run economic growth.

Answer to Problem 14MCQ

Option D is correct.

Explanation of Solution

To put it simply, Total Factor Productivity (TFP), sometimes known as TFP, is an equation used in economics to calculate the effect of changes in worker knowledge and technological improvements. It makes an effort to quantify how these changes affect an economic system's long-term production. Total factor productivity (TFP) is frequently seen as the main driver of GDP growth. Labor inputs, physical capital, and people and human capital are other significant aspects.

Economics Concept Introduction

Economic growth is a value of goods and services that are calculated over a period of time according to the current price level.