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To Decompose What Explains the Difference in Per Capita GDP

Question 67

Multiple Choice

To decompose what explains the difference in per capita GDP between any two countries, say, 1 and 2, we would use:


A) y1y2=Aˉ1Aˉ2×(kˉ1kˉ2) 1/3\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \times \left( \frac { \bar { k } _ { 1 } } { \bar { k } _ { 2 } } \right) ^ { 1 / 3 }
B) y1y2=Aˉ1Aˉ2\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } }
C) y1y2=(kˉ1kˉ2) 1/3\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { k } _ { 1 } } { \bar { k } _ { 2 } } \right) ^ { 1 / 3 }
D) y1y2=Aˉ1Aˉ2÷(kˉ1kˉ2) 1/3\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \div \left( \frac { \bar { k } _ { 1 } } { \bar { k } _ { 2 } } \right) ^ { 1 / 3 }
E) y1y2=(Aˉ1Aˉ2) 1/3\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 1 / 3 }

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