Which of the following best differentiates labor productivity from total factor productivity in the context of economic productivity classification?

Labor productivity measures how much output is produced per worker or per hour worked, focusing specifically on the contributions of labor to production. In contrast, total factor productivity considers all inputs used in the production process, including labor, capital, and materials, to assess overall efficiency. For example, if a factory produces 100 toys with 10 workers in a day, the labor productivity is 10 toys per worker. However, if we also consider the machines and materials used to make those toys, total factor productivity would give a broader view of how effectively all resources are utilized. In summary, while labor productivity looks only at the role of workers, total factor productivity provides a complete picture of how well all inputs work together to create goods.