Capital Per Person in India Is About Five Percent and Per

Short Answer

Capital per person in India is about five percent and per capita income is about nine percent of the U.S. level. Given that per capita income y = Ak0.3, calculate the level of total factor productivity (A) , relative to the U.S. level, that would be needed for India to match the U.S. level of per capita income. (0.050.3 = 0.4)