In some countries, the real interest rate is 4%. Depreciation is 6% and companies operate in private sales competition with a 10% markup. What is the marginal productivity of capital here?

a. 15% b. 5% c. 10% d. 11%

There are two countries under consideration, A and B, which neither borrow money from nor lend to other countries. Both countries have the same technology (E) and the capital stock (K) is smaller than the golden rule suggests. Consumers in country A save a higher percentage of their income than consumers in country B.

Which statement is true in long run equilibrium? a. Economic growth is higher in country B b. Consumption per person is higher in country A c. Consumption per person is higher in country B d. Economic growth is higher in country A