Refer to the following table when answering the following questions.
Table 4.1: Production Model's Prediction for Per Capita GDP (US = 1)
(Source: Penn World Tables 9.0)
-Consider Table 4.1, which compares the model
to actual statistical data on per capita GDP. You observe the model:
A) consistently underestimates the level of per capita GDP.
B) consistently overestimates the level of per capita GDP.
C) does a really good job of estimating the level of per capita GDP.
D) clearly contains all factors that affect per capita GDP.
E) None of these answers is correct.
Correct Answer:
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