To Decompose What Explains the Difference in Per Capita GDP

question 67

Multiple Choice

To decompose what explains the difference in per capita GDP between any two countries, say, 1 and 2, we would use:

• A) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \times \left( \frac { \bar { k } _ { 1 } } { \bar { k } _ { 2 } } \right) ^ { 1 / 3 }\)
• B) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } }\)
• C) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { k } _ { 1 } } { \bar { k } _ { 2 } } \right) ^ { 1 / 3 }\)
• D) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \div \left( \frac { \bar { k } _ { 1 } } { \bar { k } _ { 2 } } \right) ^ { 1 / 3 }\)
• E) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 1 / 3 }\)

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