Refer to the Following Table When Answering
Table

question 38

Multiple Choice

Refer to the following table when answering
Table 4.1: Production Model's Prediction for Per Capita GDP (US = 1)
$\begin{array}{lll}&\text {Fredicted output }&\text {Observed }\\&\text {per capita, }y = \bar { k } ^ { 1 / 3 }&\text {per capita GDP } \\\hline \text { Switzerl and } & 0.966 & 1.083 \\\text { United Kingdom } & 0.828 & 0.876 \\\text { Japan } & 0.760 & 1.056 \\\text { Italy } & 0.686 & 0.975 \\\text { Spain } & 0.661 & 0.944 \\\text { Brazil } & 0.201 & 0.559 \\\text { South Africa } & 0.182 & 0.546 \\\text { China } & 0.172 & 0.528 \\\text { India } & 0.084 & 0.394 \\\text { Burundi } & 0.010 & 0.180 \\\hline\end{array}$
-Consider Table 4.1, which compares the model $y = \bar { k } ^ { 1 / 3 }$ to actual statistical data on per capita GDP. You observe the model:

• A) consistently underestimates the level of per capita GDP
• B) consistently overestimates the level of per capita GDP
• C) does a really good job of estimating the level of per capita GDP
• D) clearly contains all factors that affect per capita GDP
• E) None of these answers are correct.

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