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What is NOT true about multifactor productivity?

Focuses exclusively on labor usage
Also known as total productivity
Involves multiple inputs
Inputs are usually expressed in dollars

asked
User Gehleh
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1 Answer

3 votes

Final answer:

Multifactor productivity focuses on multiple inputs, including labor, materials, and machinery. It is also known as total productivity. Inputs in multifactor productivity are usually expressed in physical units, not dollars.

Step-by-step explanation:

Multifactor productivity is a measure that calculates the output produced in relation to multiple inputs. It considers not only labor usage but also other resources such as materials and machinery. Therefore, the statement 'Focuses exclusively on labor usage' is not true about multifactor productivity. Instead, multifactor productivity looks at the overall efficiency of all inputs.

Moreover, multifactor productivity is also known as total productivity because it considers all the factors of production. It takes into account the resources used to produce goods and services, including labor, materials, and machinery.

Lastly, when measuring multifactor productivity, inputs are usually expressed in physical units such as hours of labor or quantity of materials rather than dollars. This is because measuring inputs in dollars doesn't account for changes in prices, inflation, or other factors that can impact the value of money over time.

answered
User JackCA
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