A comparison of per-capita GDP in China and India over the last five decades indicates that
A)increases in physical capital contributed more to growth in China than in India
B)increases in physical capital contributed more to growth in India than in China
C)India's per-capita GDP grew more than China's due to lower population growth
D)while per-capita GDP of the two countries increased at about the same rate, India's total factor productivity increased much more than China's
E)while China's total factor productivity increased much more than India's, the per-capita GDP in both countries increased at about the same rate

Question

Quizplus · Accepted Answer

EIncreases in physical capital have indeed contributed more to growth in China than in India, as China has heavily invested in infrastructure and manufacturing capabilities over the past few decades. Additionally, China's total factor productivity, which includes elements such as technological innovation and efficiency improvements, has increased significantly more than India's. This has been a key factor in China's rapid economic growth, even though the per-capita GDP growth rates in both countries have not increased at the same rate, contrary to what option E suggests. However, the correct part of E is the comparison of total factor productivity increases between the two countries.

A Comparison of Per-Capita GDP in China and India Over