So it looks like you're having trouble with the concepts.
Yeah, the textbooks are a bit dense, once you begin to have a bit of an idea about what it's saying, then the textbooks are a bit easier to understand. The stuff you're talking about is all mentioned in the textbook.
At a glance, the question seems to be badly place to a small extent (there seem to be easily missed references about the opposite business, paragraph 3 of page 359 for example). Perhaps have a read of 10.2 (Faraday's Law) and 10.3 (Lenz's Law) first, the answer to the question might be clearer after that.
For that question, you have a current, that induces a magnetic flux (chapter 9 content), which induces a current in the other end of the solenoid.
You'll do demonstrations like these in class, but have a look at the ones here about electromagnetic induction and magnetic fields.
http://www.youtube.com/ibphysicshelp (youtubing electromagnetic induction will come up with quite a few videos).
Right hand column, the videos on magnetism on khanacademy could be of use to you at the moment:
http://www.khanacademy.org/#physicsThe iTute notes might also be of help too.
edit: I didn't notice you had posted two questions, mistook 1) and 2) to refer to 7 and 8:
With the second Q, how do you determine the direction of the current? Book say's initially clockwise then later anticlockwise, but how can you determine this?
Right hand grip rule.
You know the direction of the field, so you curl your fingers in that direction. The direction of the current is given by your thumb. The clockwise/anticlockwise here would refer to the direction of the current in the loop. Also remember that the EMF generated is given by the
negative rate of change of flux.