As an economist working at the International Monetary Fund, you are given the following data for Burundi: observed per capita GDP, relative to the United States, is 0.01; predicted per capita GDP, given by $y = k ^ { 1 / 3 }$ , is 0.18. What is total factor productivity?

Question

Quizplus · Accepted Answer

Total factor productivity (TFP) is calculated as the ratio of observed per capita GDP to predicted per capita GDP. Here, TFP = 0.01 / 0.18 = 0.0556, which rounds to 0.06.

As an Economist Working at the International Monetary Fund, You y=k1/3y = k ^ { 1 / 3 }y=k1/3

As an Economist Working at the International Monetary Fund, You $y = k ^ { 1 / 3 }$