Kayley has all of the symptoms of a urinary tract infection over a holiday weekend. She recalls that in the past, the urinary analgesic, phenazopyridine, has relieved her symptoms very quickly, so she asks a friend to pick some up for her rather than braving a crowded health clinic. As before, Kayley gets rapid relief of her symptoms. Should Kayley be concerned about anything else?

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.