Questions 5 (TFP) Consider the following production function: Y = AK" (qL) 1-Q 1. In 2000, the data for France and UK has given as below, employment education capital GDP France 27 7.8 3852 1351 UK 29 9.4 2873 1326 which country had higher TFP? 2. Korea Since the end of the Korean War, Korea has been one of the most successful economies in the world. What are the sources of its success? The data are given as follows, year GDP per capita Population Capital Labor Education 1961 1542 25.98 102.24 8.75 4.25 2000 15876 47.28 2117.08 20.36 10.84 Note: GDP per worker is GDP per capita times population then divided by the number of workers. (a) Compute the average annual growth rate of GDP per worker from 1961-2000. (b) Express growth in output per worker with respect to growth in TFP, capital per worker, and human capital. What factors are most important? Assume o = 1/3