In: Economics
As an economist working at the International Monetary Fund, you
are given the
following data for Singapore: per capita GDP is 1.45 times that of
Canada, and the
saving rate is the same as in Canada. If α=1/3, what do you
conclude about TFP?
(a) Singapore’s TFP is approximately 44% larger
(b) Canada’s TFP is approximately 44% larger
(c) Singapore’s TFP is approximately 30% larger
(d) Canada’s TFP is approximately 30% larger
(e) None of the above
Answer) Option E is the right answer. On examination the absolute factor profitability of singapore is 45% more than that of Canada
A singapore= 1.45 A canada