When an individual proclaims the need for a new car, the person typically means a. that without a new car, their life cannot go on. b. that their ability to get around will cease. c. that having such a possession would be nirvana. d. they want something they currently do not have?

Mankiw attributes – chapter 1 and his 10 principles – differences in living standards within a countryover time and across countries at a moment in time to: a. the presence or absence of inflation and unemployment.b. the allocation of resources between private markets and the public sector.c. those that have dealt successfully with the efficiency v. equality tradeoff and those that haven’t.d. differences in productivity.e. ones that think at the margin and respond to incentives and those that don’t.