-One explanation for the difference between the predicted output per person and the observed per capita GDP in Table 4.1 is:
A)differences in per capita capital.
B)differences in the labor supply.
C)differences in factor productivity.
D)differences in labor's share of GDP.
E)none of the above

Question

-One explanation for the difference between the predicted output per person and the observed per capita GDP in Table 4.1 is:
A)differences in per capita capital. 
B)differences in the labor supply. 
C)differences in factor productivity. 
D)differences in labor's share of GDP. 
E)none of the above

Quizplus · Accepted Answer

Differences in factor productivity can explain variations between predicted and observed GDP, as productivity affects how efficiently inputs are converted into outputs.

-One Explanation for the Difference Between the Predicted Output Per