Question

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.

Answer 1

Answer:

.c. those that have dealt successfully with the efficiency v. equality trade off and those that haven’t.

Explanation:

Mankiw believed that a country's living standard will be heavily depended on that country's ability to produce economic goods.

Countries that can manage their production efficiently, tend to be able to sold larger amount of products with relatively lower cost. This will lead to more income for the country and the people will have higher living standard because of it,