These are the dpi values that iPhoto 9.6.1 uses for its various items:

The dpi I strive for is 300 dpi or larger. However, I've had books with photos that are in the 180 dpi range that came out very nicely. Just always use the largest image available.
iPhoto creates PDF files that are 300 dpi so anything with a higher dpi will be downsized so don't bother to artificially increase dpi beyond that. In fact, artificially increasing dpi is, as Larry has pointed out, counterproductive as it lessens the image quality.
One key item you can control is the color profile. Do not use the Adobe RGB profile. Use the standard RGB from Apple RGB, Camera RGB (as long as it's not Adobe) or the sRGB IEC61966-2.1 profile.
We can only assume that Photos uses values similar to iPhoto since they use the same printing facilities.
