7. Distinguish carefully between

(a) Gresham's law and Engel's law;

(b) a Giffen good and a Veblen good; and

(c) illiquidity and insolvency.

8. Distinguish carefully between

(a) a club good;

(b) a pure private good; and

(c) a pure public good.

9. Ceteris paribus, which countrieslarger (more populous) or smaller (less populous)would

you expect to rely more on international trade as a percentage of their economic activity?

Explain your answer.

10. Distinguish carefully between a tariff to raise revenue and a tariff to protect domestic

industries. Ceteris paribus, which would you expect to be levied at a higher rate?

11. Distinguish carefully between output per worker (a measure of productivity) and output per

person (a measure of the standard of living). If the workforce grew faster than total

population, which measure would rise faster? Explain your answer.

12. Distinguish carefully between what economic historians call a necessary condition and a

sufficient condition. Illustrate your answer with reference to the British Industrial Revolution.