Calculating the Total Factor Productivity for India Compared to the United States

Explanation:

To find the implied value of total factor productivity for India, we can use the formula: Total factor productivity = Per capita GDP / Capital per person ratio.

Given the values provided, the implied value of total factor productivity for India is approximately 2.114.

Explanation:

To find the implied value of total factor productivity for India, we can use the formula: Total factor productivity = Per capita GDP / Capital per person ratio.

Given that India's per capita GDP is 0.074 times the United States GDP and its capital-per-person ratio is 0.035 times that of the United States, we can substitute these values into the formula:

Total factor productivity = 0.074 / 0.035 = 2.114

Therefore, the implied value of total factor productivity for India is approximately 2.114.