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)
-Considering the data in Table 4.1, the explanation for the difference between the predicted and actual level of output is called ________. If you compare South Africa's observed and predicted output, this difference is equal to ________.
A) total factor productivity; 0.37
B) the Solow residual; 2.71
C) Dirac's delta; 0.14
D) capital's share of GDP; one-third
E) labor's share of GDP; two-thirds

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)
-Considering the data in Table 4.1, the explanation for the difference between the predicted and actual level of output is called ________. If you compare South Africa's observed and predicted output, this difference is equal to ________.
A) total factor productivity; 0.37 
B) the Solow residual; 2.71 
C) Dirac's delta; 0.14 
D) capital's share of GDP; one-third 
E) labor's share of GDP; two-thirds

Quizplus · Accepted Answer

Total factor productivity explains the difference between the predicted and actual level of output. For South Africa, this difference is 0.37.

Refer to the Following Table When Answering the Following Questions