Q. The ratio of total agricultural output to total production inputs is known as:
Red Book
Red Book

[A] Agricultural Productivity

[B] Yield

[C] Total Factor Productivity

[D] None

Answer: C
Notes:
  • Agricultural Productivity: Ratio of agricultural outputs to inputs. Agriculture productivity increases when more agricultural products are produced with the same amount or fewer resources.
  • Yield: Output per unit of a single input. Yields can increase through productivity growth, or by applying more inputs, called input intensification. An increase in yield may or may not represent improvements in sustainability.
  • Total Factor Productivity: IFPRI describes TFP as an indicator of how efficiently agricultural land, labor, capital, and materials (agricultural inputs) are used to produce a country’s crops and livestock (agricultural output)—it is calculated as the ratio of total agricultural output to total production inputs. When more output is produced from a constant amount of resources, meaning that resources are being used more efficiently, TFP increases.

Source: EPIC October 2021

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