Question

Define total factor productivity?

Answer 1

In economics total factor productivity also called multi factor productivity is the portion of output not explained by traditionally measured inputs of labour and capital used in production

Answer 2

Productivity is one of the most important part of any particular economic system.

There are many types of productivity which are completely different due to their economical characteristics difference.

Similarly,"Total Factor Productivity",or the "TFP" is an important type of economical productivity where the productivity is calculated from the average basis of the "labour expenses" and the required "capital".