Final answer:
True, measuring the impact of capital acquisition on productivity is an example of multi-factor productivity which considers various inputs including capital and labor to determine changes in output.
Step-by-step explanation:
Measuring the impact of a capital acquisition on productivity is indeed an example of multi-factor productivity. Multi-factor productivity (MFP) is a measure of the efficiency with which all inputs are used to produce outputs. It differs from labor productivity, which only considers the output per hour of work or output per worker. In the case of capital acquisition, a company may invest in new machinery or technology that requires different inputs including labor, capital, and possibly materials. By examining how these various inputs contribute to changes in output, a business can determine the effectiveness of its investment. The main answer to this is 'True' as it exemplifies MFP by considering both the capital input and the resulting productivity changes.MFP is important in understanding productivity growth and comparing productivity across different economies or industries. Other factors such as the education of workers, economies of scale, and the knowledge base of workers can all influence MFP. As such, companies often analyze MFP to decide on investments and strategies that could lead them to a competitive edge.