David is 13 years old and is telling his mother that she should not drive too fast, and she should make a complete stop at the light in order to avoid getting a ticket. Lawrence Kohlberg would suggest that this illustrates morality.

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.