1. Draw the MPK schedule so that, over a certain initial range of capital, there is increas- ing MPK and then this is followed by diminishing MPK until the MPK declines to a level higher than that achieved in poor countries. What pattern of cross-country growth will this produce? How does this compare with the data described in this and earlier chapters?
2. A country has a working age population of 70 million, a total population of 100 million, unemployment of 5 million, and employment of 45 million.
(a) What is its labor force?
(b) What is its participation rate?
(c) What is the participation rate as a proportion of the working-age population?
(d) What is its unemployment rate?