ECON 471

Problem Set #4 – Answer Key 1. The following table provides data on output per worker, physical capital per worker, and human capital per worker, all relative to the U.S. Suppose the production function is. A) For each country, calculate factor accumulation and productivity relative to the U.S. y k h A = Country Output per Worker Physical Capital per Worker Human Capital per Worker Factor Accumulation Productivity Canada 0.76 1.21 0.81 (1.21)1/2(0.81)1/2 = 0.99 0.76/0.99 = 0.77 Mex...