1. Assume that a nation experiences a trade deficit. Explain how Hume's price- specie flow mechanism turns the deficit into a trade surplus. 2. Who, according to Adam Smith, are the agents of capital accumulation? Why is capital accumulation deemed important for an economy? 3. Adam Smith laid down the foundations for a market economy. Discuss five of the several concepts advanced by him which are important characteristics of this economic system. 4. Explain Hume's statement: " One can not deduce "right" from "is" and discuss how this relates to positive and normative economics in contemporary economics. 5. When and how do the Malthusian trap and Malthusian catastrophe happen? Why are checks to population necessary? Why do preventive checks come first before positive checks? 6. What are the Corn Laws? the Poor Laws? Why did Malthus support the Corn Laws and proposed the abolition of the Poor Laws? 7. Why can't a glut happen in the market according to Say's law of markets? In today's world , why can overproduction occur contrary to Say's law , as claimed by its critics?