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What is the multifactor productivity ratio?

Multifactor productivity measures are indicators that take into account the utilization of multiple inputs (e.g., units of output per the sum of labor, capital, and energy or units of output per the sum of labor and materials).


Once a firm knows what is it should produce what must it then decide?

Once a firm knows what is it should produce what must it then decide


What is Harrad domar model in economic development?

It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.


What is partial factor productivity?

Partial factor productivity measures the efficiency of a single input factor in the production process, typically expressed as the ratio of output to a specific input, such as labor or capital. For example, labor productivity is calculated by dividing total output by the total hours worked. This metric helps businesses assess how effectively they are utilizing individual resources, enabling them to identify areas for improvement. However, it does not provide a complete picture of overall productivity or efficiency since it isolates only one factor at a time.


What are factors affecting capital output ratio and economic growth?

It is difficult to estimate the capital output ratio for an economy. The productivity of capital depends upon many factors such as the degree of technological development associated with capital investment , the efficiency of handling new types of equipment , the quality of managerial and organizational skill, the existence and the extend of the utilization of economic overheads and the pattern and rate of investment. For instance, the higher the proportion of investment devoted to the production of direct commodities, the lower the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads. The higher shall be the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads.

Related Questions

What is a dependency ratio of a population pyramid?

In economics and geography the dependency ratio is an age-populationratio of those typically not in the labor force


What a firm knows how to best use the land to which it has access what must it then decide?

how to set the ratio of labor to capital in the production process


What Once a firm knows how to best use the land to which it has access what must it then decide?

how to set the ratio of labor to capital in the production process


What is a labor ratio and what line items belong in it?

A labor ratio is the percentage of labor spent vs the amount of revenue earned. A labor ratio is the percentage of labor spent vs the amount of revenue earned.


What is the difference between labor and capital intensity in proportion form?

Capital intensity refers to the amount of work done to make a product. Labor is the work put into making the product. The ratio in proportion form is dividing the total company assets by the amount of sales calculated.


What are the most five important ratios for banks?

current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio


How do you calculate net capital ratio?

Net Capital Ratio =Total assets / Total Liabilities


What is the common ratio of labor cost to materials during a bid?

In my opinion the ratio of labor is 40% and Material is 60%


How Capital Adequacy Ratio of a Bank is arrived?

The Capital Adequacy Ratio of a bank is arrived at by comparing the sum of its Tier 1 and Tier 2 capital to its risk. The equation for expressing the Capital adequacy ratio is: CAR=(Tier 1 Capital +Tier2 Capital)/Risk weighted assets.


What is the multifactor productivity ratio?

Multifactor productivity measures are indicators that take into account the utilization of multiple inputs (e.g., units of output per the sum of labor, capital, and energy or units of output per the sum of labor and materials).


What is the formula for capital turnover ratio?

Capital turnover = Sales/ Invested capital


What is minimum capital ratio?

The minimum capital ratio is a financial metric that measures the minimum amount of capital a bank or financial institution must hold relative to its risk-weighted assets. It is a regulatory requirement designed to ensure that banks maintain sufficient capital buffers to absorb potential losses and promote stability in the financial system. This ratio is typically expressed as a percentage and is a key component of the Basel Accords, which set international banking standards. Maintaining an adequate minimum capital ratio helps protect depositors and reduce the risk of bank failures.