1. Distinguish carefully between

(a) absolute advantage and comparative advantage;

(b) natural and acquired difference in productive abilities; and

(c) economies of practice and learning by doing.

2. Explain carefully why the rate at which a country is urbanizing is a proxy for the growth of

agricultural productivity. What assumptions lie behind your explanation?

3. Define total factor productivity (TFP). What factors give rise to a positive TFP? And what

factors give rise to a negative TFP?

4. Distinguish carefully between

(a) market failure;

(b) path dependence;

(c) rent-seeking; and

(d) the tragedy of the commons.

5. Distinguish carefully between

(a) adverse selection;

(b) information asymmetry;

(c) moral hazard; and

(d) the principal-agent problem.

6. Distinguish carefully between

(a) an intellectual enlightenment;

(b) an industrious revolution; and

(c) the Industrial Revolution.