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.

Question

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.

Quizplus · Accepted Answer

The model consistently overestimates the level of per capita GDP, as shown by the consistently higher predicted values compared to the actual values in the table.

Refer to the Following Table When Answering the Following Questions