What classification of economic productivity refers to the efficiency with which resources are utilized to produce goods and services?

The classification of economic productivity that focuses on how efficiently resources are used to create goods and services is called "total factor productivity" (TFP). This measure looks at how well all inputs, like labor and materials, are combined to produce output. For example, if a factory can produce more toys using the same number of workers and materials as before, it shows higher total factor productivity. This efficiency is crucial because it can lead to increased economic growth without needing to use more resources. Overall, improving TFP means that an economy can produce more with less, helping to create wealth and improve living standards.