As a rough approximation, differences in capital per person explain about ________ of the difference in incomes between the richest and poorest countries, while differences in ________ explain ________.

Question

Quizplus · Accepted Answer

According to the statement, differences in capital per person explain about one-third of the difference in incomes between the richest and poorest countries, while differences in total factor productivity explain two-thirds. Therefore, the best choice is B, which states that differences in total factor productivity explain two-thirds of the difference in incomes between the richest and poorest countries.

As a Rough Approximation, Differences in Capital Per Person Explain