1. Discuss the components of the Veblenian Dichotomy. Discuss at least two aspects of the main branches of the dichotomy. Why is it called the Veblenian dichotomy? Give an example of the application of the dichotomy to economic theory.

2. Explain the principles of institutional adjustment as discussed in class and in the readings. What are the essential aspects of each principle? Why is each principle necessary for institutional adjustment? Give an example of institutional adjustment as it relates to economic activity.

3. From the model of the evolution of the organization of production (from handicraft to electronic machine process) as per class lecture and notes, analyze how the new regime of business enterprise/ machine process affects the general welfare and economic instability. Make sure to include an explanation of business enterprise and its relationship to the machine process and impact on it. What is the importance of each and what role does each play in influencing economic forces?