2. What is money? What are the functions that money performs in a market economy and what conditions must necessarily exist in order for money to perform these functions? Carefully explain.

a. Distinguish between "absolute advantage" and "comparative advantage." Carefully explain why it is argued that countries should specialize in the production of those commodities in which they have a 'comparative advantage', rather than an 'absolute advantage

b. Carefully explain why National income accountants only include the market value of final tangible goods and services produced in a particular year when measuring GDP, making sure to identify which categories of transactions are omitted and why they are omitted

c. How and why does 'modern monetary theory' differ from "conventional' monetary theory in its view of stabilization policy? Carefully explain.

d. What are "non-tariff barriers'? Carefully explain why it is argued that 'non-tariff barriers' are inefficient, trade- constraining measures and why, despite this argument, countries continue to impose them?