Answer each in no more than a single page, double-spaced, EACH.
1. How does the value-added concept assist in avoiding double-counting in the measure of Gross National or Domestic Product? Discuss.
2. Describe the principle of comparative advantage in a manner that convinces me that you truly understand it – which is a tall order, I know. Now explain how, at least under the bilateral trading framework envisioned by this theory, it is possible to have a place in the global arena without actually achieving absolute advantage in any line of business.
3. Define total factor productivity and explain how it relates to economic growth.
4. Define and describe the so-called “three prices of money.” How do changes in the money supply affect each.
