The firm in a perfectly competitive industry is a

Assume that at the beginning of 2012, one dollar could be traded for 5 yuan. If in 2013 one dollar was being traded for 6 yuan, it can be concluded that:

A) the dollar appreciated against the yuan and the yuan depreciated against the dollar in 2013. B) the real exchange rate changed in 2013 assuming PPP holds. C) the nominal exchange rate did not change in 2013. D) the dollar depreciated against the yuan and the yuan appreciated against the dollar in 2013.

If output per worker in a steady state is $30,000, depreciation is 13%, the population growth rate is two percent, and the saving rate is 20%, what is the steady state capital-labor ratio?

A) $10,500 B) $85,714 C) $22,500 D) $40,000