Author: Irwin Collier

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Exam Questions Princeton Theory

Princeton. General Exams on Theory for Economics PhD. 1953 through 1972

My curating strategy generally has been to post individual artifacts one by one with each limited to a specific university, a particular point in time and a single course/field. But sometimes, just sometimes, I stumble upon a relatively complete, long-run of comparable artifacts to warrant lining them up into a single post. 

In William J. Baumol’s papers in the Economists’ Papers Archives at Duke University, we find about two decades’ worth of post-war Ph.D. general exams in economic theory at Princeton. 

But wait, there is more…

Scans of the microeconomic theory general exams for 1987-1989 and 1990-1994 at Princeton can be downloaded from the Ed Tower Collection at Duke.

____________________________

May 1953

PRINCETON UNIVERSITY
Department of Economics and Social Institutions

General Examination
for the Degree of Doctor of Philosophy
Theory

May, 1953

Part I

Answer any three

I

Discuss the problem of cost calculation and pricing in a multi-product firm, touching on problems like overhead costs and technical variability and invariability of output proportions.

II

Is there a theory of wages? Describe what has been done in the literature on the subject and indicate why the initial question might be raised at all.

III

“Monopoly tends to restrict output to undesirably small levels.” Discuss.

IV

How would you show by indifference curve analysis that out of larger incomes larger amounts will be saved. Is such a proposition empirically plausible.

Part II

Define any four

    1. Cross elasticity of demand
    2. Economic horizon
    3. Marginal efficiency of capital
    4. Average period of production
    5. Consumer’s surplus
    6. Linear programming.

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

May 1955

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy
May 1955

Economic Theory

Answer any four. Try to be brief and to the point.

I

If a monopolist sells in two separated markets with similar costs but different demand curves, prove that it will be profitable to charge a lower price in the market where the elasticity of demand is greater.

II

Explain the relation between the rate of interest and the price of bonds and show how Keynes uses this in arguing that there is a floor to interest rates.

III

Construct a contract curve. Show that for any point on the contract curve a) the marginal rates of substitution between the two commodities will be equal for both parties,  b) no change can benefit one of the two parties without adversely affecting the other.

IV

Keynes argues that a fall in money wages will not reduce real wages because prices will fall proportionately. Explain how this could come about considering that labor costs are only a fraction of total costs and that workers provide only a fraction of the demand for goods.

V

Discuss the argument that a nationalized industry ought to sell its output at a price equal to its marginal cost.

VI

Discuss the policy implications of the monopolistic competition theory of the output and pricing by the firm.

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

October 1955

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

ECONOMIC THEORY

Mr. George K. Chacko
October, 1955
(Time: three hours)

Answer any three

I

  1. On what ground has it been argued that a nationalized industry should charge a price equal to its marginal costs?
  2. Why has it sometimes been argued that this rule will produce undesirable results unless all industries are nationalized?
  3. How would the presence of external economies or diseconomies affect this rule?

II

  1. Define a contract curve.
  2. Show its geometric construction.
  3. Show that corresponding to any point off the contract curve there is a point on the curve which represents an improvement to both parties.
  4. Show that no move from a point on the contract curve can possibly represent an improvement to both parties.

III

  1. Define the acceleration principle.
  2. Show that it implies a one quarter cycle lag in consumption behind investment.
  3. How can this get the underconsumptionists out of an embarrassing position?

IV

  1. Define price elasticity of demand.
  2. Assuming nothing but the definition prove that a fall in price will raise a consumer’s expenditures on an item if his demand for it is elastic.

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

January 1956

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

January, 1956

Economic Theory

Answer any four questions.

  1. Outline a) Keynes’ interest analysis and
    b) one classical analysis of the determination of the rate of interest.
    c) Show how a neo-classicist might accept the Keynesian position for the short and yet argue consistently that in the long run the rate of interest will be determined by “real” relationships.
  2. a) What is the marginal condition for the equilibrium of exchange of two commodities between two consumers?
    b) Show that if the conditions are not satisfied it is possible for these consumers to arrange for a mutually beneficial exchange.
    c) Show these results diagrammatically.
  3. a) Show the circumstances under which price and quantity sold on a competitive market for the product of one industry will tend toward their supply demand equilibrium values.
    b) When will they not tend toward equilibrium?
    c) What is the significance of this point for practical application of the static equilibrium analysis?
  4. a) What are external economies of scale?
    b) Show how they can prevent achievement of an ideal allocation of resources in a competitive free enterprise economy.
    c) Show how they might lead to a misallocation of resources by a competitive industry though they might have no analogous effect on a monopolistic firm which takes over that industry.
  5. a) Describe the Neumann-Morgenstern index of utility.
    b) How does it differ from utility measurement in the classical sense?
    c) What is meant by measurement unique up to a linear transformation, i.e., what does the mathematician mean by cardinal measurement?
  6. a) Define the income effect on the quantity of x of a change in the price of x.
    b) Show that in the case of the sale of a commodity out of a fixed total supply, the income effect on the amount offered by the supplier will usually be opposite in sign from the substitution effect.
    c) Show how this may be used to account for union demands for a shorter work week despite higher hourly wages.

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

October 1956

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

October, 1956

Economic Theory

Time: 3 hours
Answer any three questions.

I

  1. Show how in Keynesian theory an increase in money supply will have some effects in common with a fall in money wages.
  2. What difference can be expected in their effects on expectations?
  3. Why does Keynes argue for one against the other?
  4. What is the Pigou effect?

II

  1. In terms of indifference curves show the effects of a tariff on the terms of trade.
  2. What is the relation to the contract curve?
  3. Show why the point of competitive equilibrium in the absence of tariff is supposed to lie on the contract curve.

III

  1. Describe the Neumann-Morgenstern utility index.
  2. What is meant by its being cardinal?
  3. Prove the relevant properties.

IV

Discuss the stability of equilibrium under Marshallian and Walrasian assumptions including such considerations as long run vs. short run and forward falling vs. backward rising supply curves.

V

Show why it is maintained that ideal output can be achieved when price is everywhere equal to marginal cost.

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

January 1957

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

January, 1957

Economic Theory

Part I

Answer any three questions.

I

Show that the Laspeyres index of real income for an individual will always be correct when it shows his real income has fallen but may be wrong when it indicates his real income has risen.

II

Describe the identification problem and indicate what can be done about it. Use the Keynesian model rather than the supply-demand diagram as an illustration.

III

Describe the marginal and second order conditions of equilibrium for the output of two commodities produced by a single firm under pure competition (i.e. when will the relative outputs of the two items be optimal?) Show why these conditions are valid, and illustrate in a diagram.

IV

Describe the loanable funds and liquidity preference theories and some of the attempts to show that they amount to the same thing.

Part II

Answer any question.

I

What does Patinkin mean by the real balance effect? Why does he state that the price level will be indeterminate in its absence? Where does this leave the quantity theory?

II

What is ideal output? What price conditions are usually said to be enough to assure its achievement? Explain and criticize.

III

What is the point input-point output case in capital theory? Why is it particularly easy to define an average period of production in this case?

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

May 1957

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

May, 1957

Economic Theory

Time: 3 hours

PART I
(Answer all questions)

  1. (a) Explain how for close substitutes the marginal utility of X might fall as the quantity of X in increased but that of Y is increased.
    (b) Give a concrete illustration.
    (c) Explain intuitively why the consumer in not in equilibrium if the marginal rate of substitution of A for B is not equal to the ratio of their prices.
  2. (a) Explain why in the Keynesian system a fall in taxes will shift the savings curve to the right (Hint: Here the savings figure is based on income before)
    (b) Why does this result appear paradoxical?
    (c) Show diagrammatically that this shift in the savings curve will increase equilibrium national income.
  3. (a) Show diagrammatically how prices are determined in its two markets by a discriminating monopolist.
    (b) Why must equilibrium marginal revenue be the same in both markets?
    (c) Will discriminating monopoly output tend to be higher or lower than under simple monopoly? Briefly indicate an intuitive reason for your answer.

PART II
(Answer one question)

  1. Discuss the issues in the marginal cost controversy.
  2. Describe the theory of marginal pairs.
  3. Discuss the Scitovsky and Kaldor criteria.
  4. Discuss the average period of production and its use in interest theory.

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

October 1958

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

October, 1958

Economic Theory

Time: Three hours

I

Discuss the relationship of Say’s Law, Walras Law and the determinateness of the price level in a General Equilibrium system.

II

Describe and evaluate any two standard duopoly or bilateral monopoly models.

III

State and explain the basic assumption of the revealed preference analysis of consumer behavior. Derive at least one theorem with its aid and describe its implications for index number theory.

IV

What is the real balance (Pigou) effect? How does it enter the analysis of effects of a general wage cut on employment? Discuss the relevant interest rate mechanism.

V

What are external economies and diseconomies? How do they make possible competitive equilibrium in an industry in which the average cost curve is downward sloping? What are the implications of external economies for the relationship between competitive and “ideal” resource allocation?

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

October 1959

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

October, 1959

Economic Theory

Time: 3 hours

I. (answer four questions)

1. —

    1. What is the real balance (Pigou) effect?
    2. Explain its role in the determination of the price level.
    3. What is its role in the relation between wages and employment?

2. —

    1. Define the income effect.
    2. Show that the substitution effect involves a fall in the demand for a commodity when its price increases.
    3. Draw an indifference map which corresponds to a positively sloping demand curve.

3. Describe two oligopoly models in detail.

4. —

    1. Draw a curve of marginal fixed costs and explain its shape.
    2. What does this result imply about the effect of a change in fixed costs on the price and output of a profit maximizing firm? Explain.
    3. Does the same result necessarily hold for a firm with other objectives? Explain.
    4. Derive and criticize the theorem that perfect competition yields an ideal allocation of resources.

[note: file only has this first page of the October 1959 exam. Presumably there was at least a Part II and perhaps Part III/IV….?]

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1950-59)”.

____________________________

January 1960

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

January, 1960

Economic Theory

PART I
(Answer all Questions)

  1. [Linear homogeneous production function]
    1. Define “Linear homogeneous production function.”
    2. Name two areas in economies in which such functions occur in the literature and indicate their role briefly.
  2. Keynes at some point appears to assert that a fall in money wages does not reduce real wages.
    1. How may this be explained (in your answer take account of the fact that labor cost is only a part of total cost)?
    2. Does Keynes ever indicate that a fall in money wages might increase employment? If so, how would the process work?
  3. Compare the analyses by Lange and Patinkin of the role of money in neo-classical systems.
  4. Assume a purely competitive system with only one non-produced, scarce factor—labor. Also, assume the only capital in the economy is in the form of a single type of machine.
    1. in every industry using the machine it is “productive” in the sense that for given amounts of cooperating labor and intermediate goods, more is produced with it than without it. Is this necessary for interest to be paid to owners of the machines? Is it sufficient?
    2. if machines are only labor and are sold at long-run average coat, how can their owners get more from them than the recovery of these costs?
    3. “Wicksell was misleading in his explanation of interest, because he placed so much emphasis upon the productivity of the machine in the above example, while Böhm-Bawerk was misleading because he placed so much emphasis upon consumer psychology. Both elements are necessary to an explanation of the level of the interest rate.” Do you agree? Explain.

PART II
(Answer any two questions)

  1. Discuss the welfare effects of monopoly from the point of view of resource allocation.
  2. (a) Describe and discuss the “minimum critical effort” thesis in the theory of economic development. (b) What is the role of external economies in the literature of economic growth?
  3. Compare and contrast the major theories of profits.
  4. Discuss each of the following statements:
    1. “Marx was right in stressing that labor should receive its average. If all factors are given their average, rather than their marginal products, the product will be exhausted and we need not worry about whether the production function is or is not linear and homogeneous.”
    2. “It is fundamentally impossible to determine how much of a product has been produced by the labor contained in it, how much by the capital, and how much by the land. Any distribution theory must, therefore, be fortuitous in spite of any seeming scientific quality. It cannot be based on relative contributions by factors to the product.”
    3. “To instruct me to pay every laborer his marginal product is not to tell me how much labor to hire. Suppose I am a farmer. The first man I hire at $40/per week, his marginal product. The second man I hire for $38.20, his marginal product, and so forth. But the theory of marginal productivity tells me to go on hiring in this way indefinitely.”

WJB-REK: rhm

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1960

PRINCETON UNIVERSITY
Department of Economics and Sociology

General Examination
for the Degree of Doctor of Philosophy

May, 1960

Economic Theory

Answer all questions.

I.

“Keynes’s General Theory is merely a subcase of the neoclassical theory of employment. In the latter, if the money wage-rate is inflexible downward, unemployment can result. The introduction of the rigid money wage-rate by Keynes yields such rigidity and unemployment. If one removed the assumption that the supply of labor was a function of the money wage-rate, and assumed instead it was related to the real wage-rate, no underemployment equilibrium could exist in Keynes’s model.” Discuss.

II.

(a) Assume that capital goods are fixed in quantity, are indestructible, and non-producible. Assume, also, the existence of a stationary state. Further, abstract from all monetary phenomena,

    1. Under what conditions would capital goods receive returns? How would such returns differ from rents to natural resources?
    2. Would an interest rate exist in this economy? If so, would it be positive or negative?

(b) Assume, now, that capital goods are subject to wear and tear, must be replaced if the capital stock is not to decline, and are producible. The stationary state is again assumed, and monetary phenomena are abstracted from.

    1. Schumpeter believed the interest rate in such an economy would be zero. How could this occur?
    2. Capital goods are “productive.” If the interest rate were zero, so that their owners received no net returns, would this contradict the proposition that capital goods contribute a net product to the society?
    3. Wicksell believed the interest rate in this economy would be positive. But, since capital goods are merely land and labor in a different physical form, this would imply that amounts of land and labor in one form would be paid more than the same amounts in merely different physical form. Explain.

III.

Briefly:

    1. What is the level of current United States gross national product at an annual rate?
    2. What proportion of it goes for consumption, gross investment, and all-levels-of-government usage?
    3. What is the current rediscount rate at the Federal Reserve Banks?

IV.

“Let A, B, C, and D be four baskets of goods, and Ua, Ub, Uc, and Ud be von Neumann-Morgenstern ‘utility’ measures of an individual’s preferences among them. These utility measures are ordinal for choices under conditions of certainty, but cardinal for choices under conditions of risk.”
Do you agree or disagree? Explain.

V.

“For a firm with no effect on product or factor prices, maximization of profits requires that marginal physical products of all factors be proportionate to factor prices. Yet sometimes it is said that maximization of profits requires that marginal value products be equal to factor prices. These conditions are not equivalents and one or the other does not hold when profits are maximized.”
Explain.

VI.

Answer either (a) or (b).

(a) A firm sells two products, A and B, which it may produce jointly by two linear, infinitely divisible processes whose vectors are given below:

Process 1

\left[ \begin{matrix}1{}^{x}a=1\\ {1}^{x} b=2\\ 1^{xc}=-.5\\ {1}^{x} d=-.2\\ {1}^{c} 1=-3\\ {1}^{c} 2=-4\end{matrix} \right]

Process 2

\left[ \begin{matrix}2{}^{x}a=3\\ {2}^{x} b=1\\ 2{}^{xc}=-.6\\ {2}^{x} d=-.3\\ {2}^{c} 1=-4\\ {2}^{c} 2=-2\end{matrix} \right]

where inputs are treated as negative quantities, and:

(1) jxa and jxb are outputs of A and B from process j;

(2) jxc and jxb are inputs of labor and capital into process j;

(3) jc1 and jc2 are inputs of plant and warehouse capacity into process j.

The firm has given plant capacity of 200 units per period and warehouse capacity of 1000 units per period. Prices are given at

pa = 4, pb = 6, pc = 3, pd = 1.

What are the firm’s optimal process levels?

(b) A Leontief [1 – a] matrix is given below:

\left[ \begin{matrix}.95&-.30&-.50\\ -.40&.98&-.36\\ -.50&-.60&.90\end{matrix} \right]

                  What levels of gross output are required to produce the following bill of goods:

\left[ \begin{matrix}27\\ 30\\ 15\end{matrix} \right]

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1961

PRINCETON UNIVERSITY

General Examination
for the Degree of Doctor of Philosophy

May, 1961

Economic Theory

  1. (a) State and explain the basic premise of the revealed preference theory.
    (b) Explicitly use this premise to derive the sign of the substitution effect.
    (c) Under what circumstances would you expect the premise to be violated in practice?
  2. (a) What is “Walras’ Law” and what is its rationale?
    (b) How is it related to Say’s law?
    (c) How is Walras’ law employed in the basic equilibrium model?
    (d) How is it employed in Patinkin’s central argument?
  3. (a) Explain the basic multiplier formula.
    (b) Explain the multiplier geometric series.
    (c) Discuss the balanced budget multiplier theorem.
  4. Why is marginal cost pricing sometimes recommended as a rule for nationalized industries and what are its limitations?
  5. In not more than one paragraph for each give a (necessarily) superficial characterization of
    (a) Nassau Senior’s contribution to interest theory
    (b) Marshall’s “two blades of the scissors”
    (c) The wages fund doctrine
    (d) The German academic position on economics at the beginning of the twentieth century.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1962

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

May, 1962

Economic Theory

Time: 3 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you obtain in the Office of the Department of Economies.

Start a new paper or book for each question so that the examinations can be assembled by question rather than by candidate. Be sure that your Code Letter appears on each sheet or book.

  1. —
    1. Define Pareto optimality
    2. Given two commodities A and B and two consumers 1 and 2, prove that if both commodities are bought by both consumers the situation will not be Pareto optimal unless
      (1) MUa1 / MUb1 = MUa2 / MUb2
      where MUa1 is the marginal utility of commodity A to consumer 1, etc.
    3. What happens to condition (1) if consumer 1 purchases same of B but none of A and consumer 2 purchases some quantity of each item? (Give the new condition and explain briefly.)
    4. Show that if the prices of A and B are arbitrarily fixed at any levels, Pa and Fb respectively, and if both consumers are rational and each buys both items that condition (1) will automatically be satisfied without any direct central intervention, planning or rationing.
    5. Indicate briefly what this means, and what it does not mean, about the desirability of a price system.
  2. —
    1. Assuming that the demand for money is dependent on the rate of interest and on the level of real income, show diagrammatically how a change in the quantity of money will affect the levels of investment, consumption, income and employment.
    2. State the grounds on which it is sometimes argued that a change in the rate of interest is unlikely to have a significant effect on the level of investment.
    3. Describe the process by which, according to Keynes, a fall in wages may increase the level of employment.
    4. Describe an alternative mechanism whereby a wage reduction can have this effect.
    5. How do these mechanisms conflict with the identity-form of “Say’s law”?
  3. Assume that men and women are equally efficient in a certain occupation but the conditions of supply of men and women workers are different; that it is possible for the employer to pay different wage rates to men and women; and that there are no trade unions. With the marginal net productivity curve and the two labor supply curves given, show in a graph the wage rates the employer will pay and the numbers of men and of women he will employ.
    (Exact geometric construction is essential.)
  4. Reasoning along the lines of Böhm-Bawerkian capital theory, assume that land is abundant and that there are two, and only two, alternative ways of using labor in the production of consumers goods: one without any roundabout-ways and another with an average investment period of one year. With the latter method, labor is 20 per cent more productive than with the former.
    1. that the rate of interest will be 20 per cent;
    2. that the interest rate will be zero, and wages will be determined by the productivity of labor used in the more productive way;
    3. that the rate of interest might be anything between zero and 20 per cent;
    4. that the rate of interest might be well above 20 per cent.

Discuss each of these alleged possibilities and state any additional assumptions needed for it to be realized.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

October 1962

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

October, 1962

Economic Theory

3 hours

  1. —
    1. Define the acceleration principle.
    2. Describe some alternative hypotheses about the determination of aggregate investment by decision makers.
    3. Prove that if fluctuations are perfectly regular and symmetrical, a constant accelerator coefficient will yield an investment cycle which anticipates fluctuations in investment output by precisely 1/4 of a cycle.
  2. —
    1. Describe the determination of wages as a bilateral monopoly process.
    2. Describe the role of linear homogeneous production functions in the theory of distribution.
    3. Discuss briefly why it has been considered appropriate to develop a theory of capital which is distinct from the general theory of distribution.
  3. —
    1. Argue by numerical example that if for two commodities, x and y,  MUx/Px > MUy/Py it will normally pay the consumer to purchase more of x. here Px is the price of x, MUx, is the marginal utility of x, etc.
    2. Show the same result diagrammatically.
    3. Under what circumstances does MUx/Px > MUy/Py become an equilibrium condition?
  4. —
    1. Write out a two constraint three variable cost minimization linear programming problem.
    2. Give an economic interpretation of the constraints and all the variables (including slack variables).
    3. Write out the dual of your problem.
    4. Interpret all of its variables economically.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1963

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

May, 1963

Economic Theory

Time: 3 hours

  1. —
    1. Define the “Real Balance Effect”.
    2. Explain the grounds on which Patinkin maintains that it is necessary for consistency of a classical monetary system.
    3. Describe its role in the mechanism which equilibrates the price level.
    4. Evaluate the significance of the real-balance effect in the real world. What are some of the other mechanisms which may help to stabilize the price level in practice?
  2. —
    1. Outline the Lutz-Hicks analysis of the structure of interest rates.
    2. How does this analysis account for the fact that long rates are frequently higher than short rates?
    3. What does this analysis assume about expectations?
    4. On what grounds can the analysis be criticized?
  3. —
    1. Explain in terms of an indifference map how one might obtain a backward-rising supply curve of labor. (You need not draw the indifference map if you do not want to).
    2. Why in the case of the supply of a commodity are the income and substitution effects more likely to work in opposite directions, than in the case of demand?
    3. Do you believe that the supply curve of labor is typically backward sloping in practice? What evidence can you muster?
  4. — Consider the following simplex matrix arising out of a problem of product line selection under profit maximization.

\begin{gathered}\begin{gathered}\begin{matrix}&&Q_{1}&Q_{2}&Q_{3}&\end{matrix}\\ \begin{matrix}\Pi\\ U_{1}\\ U_{2}\end{matrix} \left\vert \overline{\begin{matrix}0&3&6&1\\ 9&-1&-3&-3\\ 12&-1&-2&-1\end{matrix}} \right\vert \begin{matrix}\\ V_{1}\\ V_{2}\end{matrix}\\ \overline{\begin{matrix}\alpha&\  L_{1}&\  L_{2}&\  L_{3}\end{matrix}}\end{gathered}\\ \end{gathered}

    1. Go through one pivoting step to find the next simplex matrix.
    2. Give the primal and dual solutions corresponding to your calculated matrix.
    3. Give an economic interpretation of each of the variable values in these solutions.
    4. State two of the duality theorems and show that they are satisfied by these solutions.
  1. — Write one paragraph about each of the following:
    1. Von Thunen
    2. Nassau Senior
    3. Friedrich Bastiat.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

Undated, 1964-66[?]

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

Economic Theory

  1. —
    1. Demonstrate geometrically the basic characteristics of the contract curve in the box diagram representing exchange between two parties.
    2. Show that the offer curves of the two parties will intersect at some point on the contract curve.
    3. What is the welfare significance of result (b)?
  2. —
    1. Define: local maximum, global maximum, corner maximum, 2nd order maximum conditions.
    2. In which of the three preceding types of maximum will the marginal (first order) equilibrium conditions normally break down (and why)?
    3. What is the relevance of the second order conditions for local and global maxima?
    4. In intuitive terms, what is the relationship, if any, between second order conditions and stability of equilibrium?
  3. — “If the high price of corn were the effect, and not the cause of rent, price would be proportionately influenced as rents were high or low, and rent would be a component part of price. But that corn which is produced by the greatest quantity of labor is the regulator of the price of corn; and rent does not and cannot enter in the least degree as a component part of its price.”
    1. Who might have written this?
    2. Does this statement imply that the author supported either the theory of “differential rent” or of “scarcity rent?” Give reasons.
    3. What qualifications, if any, of the statement will be appropriate if corn production is only one of several possible uses of land?
  4. —
    1. Discuss briefly the manner in which Say’s Law decomposes a general equilibrium model into real and monetary sectors.
    2. Relate briefly the Patinkin criticism of the neoclassical Invalid Dichotomy to your answer in 4 a.
    3. Relate briefly Walras’ Law to your answers in 4 a. and 4 b.
  5. —
    1. What is the acceleration principle?
    2. Derive the multiplier formula.
    3. Discuss the multiplier effects of a balanced budget.
    4. Show how the accelerator can lead to a lagged relationship between investment and consumption.
  6. — In not more than two sentences each characterize some of the work of the following:
    1. Jevons
    2. Bastiat
    3. Henry George
    4. Quesnay.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1967

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

May, 1967

Economic Theory

Time: 3 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you will have obtained from Mrs. Kwok.

Start a new paper or book for each question so that the examinations can be assembled by question rather than by candidate. Be sure that your Code Letter appears on each sheet or book.

Part I.

Answer two questions. (15 points each)

  1. Why is the measured government surplus not a good indicator of government fiscal policy actions to stimulate the economy? Does the size of the government surplus that would be realized at full employment serve to indicate unambiguously the amount of fiscal policy stimulus? Discuss the reasons for your answers.
  2. One theory of investment emphasizes the importance of changes in output through the accelerator. Can this be incorporated within the view of investment as determined by the intersection of the marginal efficiency schedule and the marginal cost of funds schedule? Explain both theories in your answer.
  3. In what sense do “vintage” capital models suggest that it is easier to change the capital intensity of the economy than did earlier models? How is labor allocated over different vintages if there is substitutability ex post as well as ex ante? Only ex ante substitutability?

Part II.

  1. Discuss the following syllogism. (15 points)

Assumption. All markets are purely competitive.

Definition 1. Surpluses to factors are payments above the opportunity costs of those factors.

Definition 2. Profits are surpluses paid to entrepreneurs.

Major premise: in the long-run surpluses to factors do not tend to disappear.

Minor premise: profits are a type of surplus.

Conclusion: in the long-run profits do not tend to disappear.

  1. Answer two of the following questions. (12½ points each)
    1. How does the Hicksian static analysis of the stability of equilibrium in multiple market economies differ from a dynamic stability analysis of such an equilibrium?
    2. Describe the structure and use of a Leontief static open input-output model.
    3. Does the income effect of a price change affect the behavior of a consumer in exactly the same way that it affects the behavior of a firm? Explain.

Part III.

Answer both 1. and 2. (15 points each)

  1. —
    1. Explain with the aid of a numerical example why it would pay Sam Pfapfnfnik to readjust his allocation of money between bread and ink if the ratio of their two prices were unequal to the ratio of their marginal utilities to him.
    2. The price of ink falls but Sam does not change his ink purchases. Explain what is happening in terms of Sam’s indifference map between ink and other commodities.
    3. Assume that all of the increase in Sam’s purchasing power resulting from the fall in the price of ink is taxed away and that he consequently does not change his purchase of any commodity. The following would then appear to hold; the marginal utility of no commodity would have changed;
      Pi, the price of ink has fallen, so that if in the initial equilibrium—
      Px/Pi = MUx/MUi then in the equilibrium position after the price fall it must be true that Px/Pi does not equal MUx/MUi . How do you reconcile this result with your answer to part (a) of this question?
  1. In one sentence for each, indicate something about the contribution of each of the following individuals:
    1. H. Gossen
    2. H. von Thunen
    3. Cairnes
    4. James Mill
    5. J. B. Clark
    6. E. Barone

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

October 1967

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

October, 1967

Economic Theory

Time: 3 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you will have obtained from Mrs. Kwok.

Start a new paper or book for each question so that the examinations can be assembled by question rather than by candidate. Be sure that your Code Letter appears on each sheet or book.

Part I.

Answer two questions.

  1. Define:
    1. income effect
    2. corner maximum
    3. homogeneity of degree zero
    4. Cobb-Douglas function
    5. revealed preference (a is revealed preferred to b)
    6. integrability (of an indifference map)
  2. —
    1. Show precisely how, in a perfect capital market, the rate of interest enters the formula for the discounted present value of a stream of payments.
    2. Explain precisely why the rate of interest enters the formula in this way.
    3. If the capital market is imperfect so that the interest rate rises with the amount obtained by a borrower, how is your previous discussion affected?
  3. —
    1. The cost and demand curves are linear and the same in two industries, one operated by a monopoly and one under pure competition. Precisely how will the magnitudes of the two outputs compare? Prove your answer.
    2. Explain how external economies make possible a decreasing long-run supply curve for a competitive industry.

Part II.

Answer any two questions.

  1. What, in meant by the expressions “shocking” or “displacing the equilibrium of” a model and what can be learned by such procedures? Illustrate your answer with the standard income-substitution effect analysis of consumer theory. Discuss also the limitations of the techniques we now have for performing these displacements.
  2. The following is an input-output model of the form
    [I – a][X] = [Y] for a two-sector economy:

\left[ \begin{matrix}.8&-.3\\ -.4&.9\end{matrix} \right] \left[ \begin{matrix}X_{1}\\ X_{2}\end{matrix} \right] =\left[ \begin{matrix}Y_{1}\\ Y_{2}\end{matrix} \right] .

Suppose [Y] = [10,20]. Solve the system for [X] and interpret your answers in economic terms.
Solve the system when [I – a] is as given below:

\left[ \begin{matrix}.4&-.8\\ -.2&.4\end{matrix} \right] ,

And interpret in economic terms.

  1. Discuss the various concepts of “stability” in general economic systems analysis, including in your discussion the following comparisons:
    1. equilibrium vs. system stability
    2. global vs. local stability
    3. Hicksian vs. dynamic stability.

Part III.

Answer question No. 3 and either 1 or 2.

  1. Give possible reasons for the existence of money illusion in each of the following Keynesian functions: consumption, labor supply, demand for money. How does the presence or absence of each of these effects alter the response of the Keynesian model to an open market purchase of bonds by the Central Bank?
  2. For a non-monetary economy, what is the level of the interest rate in the classical stationary state, and why? Define carefully an analogous state for a growing economy. What factors determine the level of the interest rate? What is the “Golden Rule”, and what is its significance (if any)?
  3. Assume that the President’s proposed 10% tax surcharge would raise personal and corporate tax liabilities by $3 billion each in fiscal 1968. Using multipliers that you think are reasonable, estimate the impact of this action on GNP and describe in words the way in which this impact will work itself out. You may assume that the Federal Reserve System’s goal is to keep the rate of inflation below 3% and that in the absence of monetary or fiscal restraint money GNP would grow at an annual rate of 8% (the CEA forecast).

Part IV.

In one sentence each characterize the writings of three of the following:

  1. E. Barone
  2. H. H. Gossen
  3. F. Bastiat
  4. Henry George
  5. J. B. Clark.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1968

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

May, 1968

Economic Theory

Time: 3 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you have obtained from Mrs. Kwok.

Start a new paper or book for each question so that the examinations can be assembled by question rather than by candidate. Be sure that your Code Letter appears on each sheet or book.

Part I. (25%)
Answer any two questions.

  1. Present the essential points of the theories of income distribution expounded by
    1. Karl Marx,
    2. John Bates Clark (or another neo-classical writer),
    3. Michael Kalecki, and
    4. Nicholas Kaldor.
  2. It has been said that the marginal-productivity theory of income distribution rests largely on technological facts (or assumptions), whereas aggregative theories of income distribution of the Kaldorian type rest chiefly on psychological facts (or assumptions). Attempt first to defend and then to criticize these contentions.
  3. If the physical efficiency of labor increases in some industries but not in others, how would you expect the marginal productivities of labor in the various industries to change, assuming perfect mobility of labor and pure and perfect competition in all markets? After you have answered this question and explained your answer, proceed to point to the qualifications required (a) if mobility is restricted, (b) if some wage rates are fixed on the basis of collective bargaining with strong labor unions, and (c) if some industries enjoy a high degree of monopoly.
  4. “Rent, like all prices, is a test, even though an imperfect one, of social need: its payment roughly ensures the most economical distribution of land between different uses; and its remission, by a land-owning State, to those in a position to pay it, whether private persons or public enterprises, would in general promote waste.” Explain every part of this statement.

PART II. (25%)
Answer question 1 and either 2 or 3.

  1. Analyze the combined net impact of the two following actions:
    1. In a period of full employment with rising prices, the government raises transfer payments to the poor, financing the resulting deficit by selling Treasury bills to the Federal Reserve System. The Fed keeps the discount rate above the bill rate.
    2. The government also cuts spending on space programs by the same amount as it raises transfer payments, using the resulting savings to retire debt held by little old ladies who put the money in savings accounts.
  2. While economists differ on the proportion of economic growth to attribute to investment in tangible capital, education, and research into new techniques, many would agree that these factors may be complementary with each other or complementary through time. Discuss the possible complementarities that may occur, identifying clearly the relationships and the effects such complementarities may have on the evaluation of investment policies.
  3. Consider an economy in a classical stationary state with a positive interest rate determined by the interaction of productivity and time preference. If the discovery of the key to immortality wipes out time preference, while at the same time generating positive population growth, describe the resulting time path of the economy to a new “golden age” equilibrium.

PART III. (25%)
Answer two of the following questions.

  1. Assume an economy with fixed amounts of two inputs, both of which are used in the production of each of two final goods.
    1. A necessary condition for efficient production is that the ratios of the marginal products of the inputs in the production of both goods be equal. Explain in economic terms why this must be true.
    2. Show how the production possibility frontier — the whole set of efficient output mixes — can be derived from the condition in (a) above.
  2. Discuss each of the following statements. They are meant to be discussed separately.
    1. “In a purely competitive market economy a stationary state can exist only if the interest rate is zero, for every investment opportunity must be exhausted to have stationarity.”
    2. “Land in an economy with a zero interest rate must (a) have an infinite value and (b) earn a zero rate of return. These are contradictory, and so the interest rate can never be zero in a market economy.”
    3. “Marx was right. Labor sells its services for their discounted marginal product in an economy with positive interest rate. This is less than it creates, and therefore labor is exploited.”
  3. Discuss the meaning and significance of the following concepts in general equilibrium theory:
    1. the law of conjugate pairs,
    2. the theory of second-best,
    3. the stability of a general economic system,
    4. balanced-growth equilibrium in a general system.

PART IV. (25%)
Answer question 1 and one of questions 2, 3, or 4.

  1. —
    1. If demand is inelastic marginal revenue is ____________.
    2. If demand for a firm’s product is inelastic, a rise in its price
      1. will always increase profits.
      2. will always increase revenues but may not increase profits.
      3. we cannot tell from the information given.
    3. The price elasticity of a linear supply curve through the origin
      1. is unity.
      2. depends on the slope of the curve.
      3. will be higher the more firms in the industry.
      4. will be lower in the short-run.
      5. none of the above.
    4. Draw the indifference map for an item such as matches with perfectly inelastic demand for any price reduction.
  2. —
    1. Make up a small linear programming problem.
    2. Write out its dual.
    3. Discuss in detail the economic interpretation of the dual.
    4. How might the values of the dual variables be used in economic planning?
  3. The imposition of any arbitrarily chosen prices will mean that as far as exchange between any two consumers is concerned the Pareto optimality condition must be satisfied. Explain, proving any theorem you need for the purpose.
  4. State three theorems on linear homogeneous production functions and prove one of them.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1969

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

May, 1969

Microeconomic Theory

Time: 2 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you have obtained from Mrs. Kwok.

Start a new paper or book for each question so that the examinations can be assembled by question rather than by candidate. Be sure that your Code Letter appears on each sheet or book.

Instructions: The examination consists of two parts which will be given equal weight. Spend about one hour on each part.

PART I.

  1. Define:
    1. identification
    2. saddle point
    3. gross and net complements
    4. law of diminishing returns
    5. substitution effect
    6. Walras’ law
    7. lexicographical ordering.
  2. Equilibrium of the firm under Chamberlinian monopolistic competition requires tangency between the firm’s average cost and demand curves. What do we know about the firm’s marginal cost and marginal revenue at that output? Prove your answer.
  3. Describe one of the following:
    1. Kaldor’s model of distribution
    2. Arrow’s possibility theorem
    3. Fisher’s analysis of allocation of resources between present and future.
  4. (Peak and off-peak pricing) An electric company plans for its output level x1,…x24 during each of the 24 hours of the day. Its operations are limited by its hourly generating capacity y so that its decisions are subject to the constraints

xi < y  (i = 1, … , 24)

The firm’s prices are required by regulation not to vary with output

\left( \frac{\partial \underline{p}_{\underline{i}}}{\partial \underline{x}_{\underline{i}}} =0 \right)

It seeks to maximize its profits, knowing its total operating cost function

C = f(x1, … , x24),

and the total cost of expanding its capacity

K = g(y)

    1. Prove that in any period in which the firm is not operating at capacity (an off-peak period) its profit maximizing price will be equal to its marginal operating cost. (Assume all outputs are positive: xi > 0.)
    2. Prove that for peak periods the payments over and above marginal operating costs will sum up to the marginal cost of increased capacity.
  2. In one sentence each characterize some of the work of the following economists:
    1. Henry George
    2. Thorstein Veblen
    3. H. H. Gossen
    4. F. Bastiat
    5. K. Wicksell.

PART II.

  1. Give an example of an economic situation which does not satisfy the following hypotheses (using a separate example for each hypothesis):
    1. The consumption set for the ith consumer is convex.
    2. The preference relation of the ith consumer is strongly convex.
    3. The demand correspondence is upper semi-continuous.
  2. Explain concisely why stability is a desirable property of general equilibrium models.
  3. Consider a pure trade economy involving two individuals, Mr. A and Mr. B, and two commodities, 1 and 2. Assume that their initial holdings are

\left( {x}_{1A}^{o} ,{x}_{2A}^{o} \right) =\text{ and } \left( {x}_{1B}^{o} ,{x}_{2B}^{o} \right).

respectively, where

{x}_{1A}^{o} +{x}_{2B}^{o} +{x}_{2A}^{o} +{x}_{2B}^{o} =\  6.

Suppose their indifference curves are specified by the utility functions:

\begin{gathered}u_{A}\left( x_{1A},x_{2A} \right) =\text{min } \left( x_{1A},2x_{2A} \right)\\ u_{B}\left( x_{1B},x_{2B} \right) =\text{min } \left( 2x_{1B},x_{2B} \right) .\end{gathered}

    1. Show all Pareto-optimal states of the economy on an Edgeworth-box diagram.  Explain your answer.
    2. Find all initial holdings, for which

\left( \overline{x}_{1A} ,{\overline{x}}_{2A} \right) =\left( 4,2 \right) \text{ and } \left( \overline{x}_{1B} ,{\overline{x}}_{2B} \right) =\left( 2,4 \right)

constitute a competitive equilibrium at some nonnegative prices (p1, p2). Graph your answer on an Edgeworth-box diagram.

  1. Explain in concise terms the role of fixed point theorems in the theory of general economic equilibria.
  2. What are the three main sources of comparative statics theorems?
    (EXTRA CREDIT: Give one example of each type of theorem.)

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Economics 506: History of Thought…1968-1990” [note: filed in incorrect folder].

____________________________

October 1969

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

October, 1969

Microeconomic Theory

Time: 2 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you have obtained from Mrs. Kwok.

Start a new paper or book for each question so that the examinations can be assembled by question rather than by candidate. Be sure that your Code Letter appears on each sheet or book.

PART I.

Answer THREE questions ONLY (20 ea)

  1. Explain (5 ea)
    1. the relationship, between cost and the supply curve of the competitive firm.
    2. the relationship between cost and the supply curve of the competitive industry.
    3. What is the role of rent in the preceding relationship?
    4. How can the competitive industry be in equilibrium if its long run average cost curve is falling?
  2. Describe one of the following:
    1. the Cournot duopoly model;
    2. the solution to a zero sum two person game;
    3. the notions of producers’ and consumers’ surplus and their graphic representation.
  3. Construct a simple general equilibrium model discussing (7 ea)
    1. the significance of the number of equations as compared to the number of unknowns;
    2. the role of inequalities;
    3. the definition of existence end uniqueness and their significance.
  4. —
    1. Define and discuss the significance of stability for general equilibrium models.
    2. State two non-trivial theorems about such stability.
  5. Describe the Neumann-Morgenstern utility measure and its purpose.

PART II. (15 ea)

Answer every question.

  1. —
    1. The elasticity of a straight line supply curve through the origin is __________.
    2. Prove the preceding answer.
  2. —
    1. Give the formula for a Cobb-Douglas function.
    2. List two of its properties.
    3. Prove one of the two properties listed in (b).
  3. Derive one of the following:
    1. The Slutsky theorem for a firm under perfect competition;
    2. The necessary conditions for optimal distribution of two commodities between two individuals..
  4. —
    1. Nassau Senior
    2. F. H. Knight.
    3. John Bates Clark
    4. J. Dupuit
    5. Karl (sic) Menger

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1960-69)”.

____________________________

May 1970

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

May, 1970

Microeconomic Theory

Time: 2 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you have obtained from Mrs. Kwok.

Put PART I in one book and PART II in another. Be sure that your Code Letter appears on each sheet or book.

PART I. (50%)

  1. Answer one question.
    1. Describe briefly one real and one monetary interest theory. Show how they can be reconciled.
    2. Explain the analysis leading to the conclusion that pure competition tends to yield an optimal allocation of resources.
    3. Describe the nature of the optimal solution to a zero sum two-person game including the notion of optimal mixed strategy.
  2. Answer one question.
    1. A firm’s demand and average cost functions are linear with the general slopes usually assumed for them. Prove that the profit maximizing output will be half as large as the zero profit output, q0 , where q0 > 0.
      What are the second-order conditions here and what is their relevance?
    2. Prove that the feasible region for a linear programming problem is convex.
  3. Answer both questions.
    1. Explain briefly the grounds on which the area under a demand curve above the level representing the market price is said to represent consumers’ surplus.
    2. In one sentence each, characterize some of the best known work of each of the following:
      1. the physiocrats
      2. The Austrian school
      3. Henry Wicksteed
      4. Wesley Mitchell
      5. James Mill

PART II. (50%)

Please answer four questions out of the following. Try not to spend any more than fifteen minutes on each question. Show all of your work. If you attempt more than four questions, then the best four will count.

  1. The following assumptions are usually made in formulating a general equilibrium model. Give concise definitions of each and discuss their plausibility:
    1. nonincreasing returns-to-scale;
    2. no interdependence of decisions among economic agents;
    3. divisibility of goods and services.
  2. What relationships can you identify between (linear and nonlinear) programming and the existence proofs for general equilibrium?
  3. Illustrate graphically a case in which the competitive mechanism is not Pareto satisfactory. Describe in words how this case might occur in the real world.
  4. State two general cases of economies in which global stability is always valid.
  5. Distinguish between gross substitution and pure substitution. State a theorem in comparative statics that is a consequence of gross substitution.
  6. Discuss the value of the models of general equilibrium theory for an economist who does not believe in the capitalist system. Comment on the criticism that such models merely “justify capitalism.”

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Exams (1970-79)”.

____________________________

October 1972

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy

October, 1972

Microeconomic Theory

Time: 3 hours

Do not write your name on any of your examination papers, but identify them with a Code Letter which you have obtained from Mrs. Coleman.

Start a new paper or book for each question so that the examinations can be assembled by question rather than by candidate. Be sure that your Code Number appears on each sheet or book.

Answer three questions in Part I and three in Part II.

PART I.

  1. —
    1. Given a nonlinear demand curve illustrate graphically how the corresponding marginal revenue curve can be constructed (no verbal explanation necessary).
    2. Give a rigorous proof of the validity of your construction procedure in a).
  2. —
    1. Define the substitution effect on x of a change in the price of x.
    2. Prove the Slutsky Theorem about the sign of the substitution effect.
  3. Given linear demand curves in two markets for a firm’s product, and a linear marginal cost curve for its output, show geometrically the prices and outputs in the two markets if the firm maximizes its profits and
    1. if it cannot discriminate in price between the two markets; and
    2. if it does discriminate.
  4. —
    1. Explain the concept of Pareto optimality.
    2. In an Edgeworth box diagram show the locus of Pareto optimal points.
    3. What can be said about the desirability of a randomly chosen point off the locus relative to that of a randomly chosen point on the locus?
  5. —
    1. Prove that if demand is inelastic a fall in price will reduce total expenditure.
    2. Describe the identification problem and show its implications for the empirical determination of a demand relationship.

PART II

  1. —
    1. What is Say’s Law?
    2. What is homogeneity of degree zero in prices?
    3. Explain briefly how the two preceding assumptions cause difficulties for monetary theory.
  2. —
    1. What is the issue of existence and uniqueness in a general equilibrium system?
    2. What is the relevance for this issue of the number of equations and the number of unknowns in the system? Illustrate your conclusion with concrete examples of equations, specifying their coefficients.
  3. —
    1. Describe the Ricardian rent model, distinguishing between the extensive and the intensive margin.
    2. Show from this analysis why a tax on pure differential rent is not shiftable.
  4. —
    1. What is the basic theorem of linear programming?
    2. Show diagrammatically why it does not hold in nonlinear programming.
    3. Explain in economic terms how the theorem is affected by the presence of diminishing returns.
  5. —
    1. Define the acceleration principle.
    2. Draw a graph that assumes total output over the course of a cycle and has the form of a sine curve. Show then how investment must vary over time if it is determined by the acceleration principle.
    3. Show how your graph can mislead the unwary observer about the reasons for a downturn.

Source:  Duke University. David M. Rubenstein Rare Book & Manuscript Library, Economist Papers’ Archive. William J. Baumol Papers, Box 20, Folder “Economics 506: History of Thought…1968-1990” [note: filed in incorrect folder].

Image Source: John E. Sheridan, Princeton Poster, c. 1901 . Library of Congress Prints and Photographs Division Washington, D.C. 20540 USA.

Categories
Exam Questions Harvard Philosophy Social Work

Harvard. Description, enrollment and exam for Social Ethics. Peabody, 1907-1908

Social Ethics inhabited an academic borderland between the disciplines of economics and philosophy at Harvard in the early 20th century. Professor Francis Greenwood Peabody, himself a Unitarian minister and professor of theology, governed that territory which attracted many graduate students of economics interested in social policy.

This post adds to the collection of examinations given in his courses over the course of nearly two decades.

________________________

Exams from past years

Exam questions  this course from the late 19th century have been transcribed and posted:

1888-1889; 1889-1890; 1890-1891; 1892-1893; 1893-1894; 1894-1895; 1895-1896.

1902-03. Listed as Philosophy 5. Taught by Peabody and Ireland.

1904-05. Listed as Philosophy 5 and Ethics 1. Taught by Peabody and Rogers.

1906-07. Taught by Peabody and Rogers.

__________________________

Francis Greenwood Peabody. The Approach to the Social Question. New York: Macmillan, 1912. “The substance of this volume was given as the Earle Lectures at the Pacific Theological Seminary in 1907.”

Peabody’s own short bibliography on the Ethics of Social Questions was published in 1910.

Another post provides the history of Harvard’s Department of Social Ethics up through 1920.

__________________________

Course Description
1907-08

  1. Social Ethics. — The problems of Poor-Relief, the Family, Temperance, and various phases of the Labor Question, in the light of ethical theory. Lectures, special researches, and prescribed reading. Tu., Th., Sat., at 10. Professor Peabody and Dr. Rogers.

            This course is an application of ethical theory to the social problems of the present day. It is to be distinguished from economic courses dealing with similar subjects by the emphasis laid on the moral aspects of the Social Question and on the philosophy of society involved. Its introduction discusses various theories of Ethics and the nature and relations of the Moral Ideal [required reading from Mackenzie’s Introduction to Social Philosophy, and Seth’s Study of Ethical Principles]. The course then considers the ethics of the family [required reading from Spencer’s Principles of Sociology (Volume 1; Volume 2; Volume 3)]; the ethics of poor-relief [required reading from Charles Booth’s Life and Labor of the People (links below), and Devine’s Practice of Charity]; the ethics of the labor question [required reading from Carlyle’s“Past and Present”, Ruskin’s “Unto this Last”, Adams and Sumner’s, Labor Problems]; and the ethics of the drink question [required reading from The Liquor Problem; a Summary of Investigations]. In addition to lectures and required reading two special and detailed reports are made by each student, based as far as possible on personal research and observation of scientific methods in poor-relief and industrial reform. These researches are arranged in consultation with the instructor or his assistant; and an important feature of the course is the suggestion and direction of such personal investigation, and the provision to each student of special literature or opportunities for observation.

            Rooms are expressly assigned for the convenience of students of Social Ethics, on the second floor of Emerson Hall, including a large lecture room, a seminary-room, a conference-room, a library, and two rooms occupied by the Social Museum. The Library of 1800 volumes is a special collection for the use of students of Social Ethics, with conveniences for study and research. The Social Museum is a collection of graphical material, illustrating by photographs, models, diagrams, and charts, many movements of social welfare and industrial progress.

Source: Announcement of the Divinity School of Harvard University, 1907-08, p. 22.

*  *  *  *  *  *  *  *  *  *  *  *

Charles Booth’s Life and Labor of the People:

(Original) Volume I, East London;
(Original) Volume II, London;
(Original) Appendix to Volume II;
Note: the previous three original volumes were re-printed as four volumes that then were followed by
Volume V, Population Classified by Trades;
Volume VI, Population Classified by Trades (cont.);
Volume VII, Population Classified by Trades;
Volume VIII, Population Classified by Trades (cont.);
Volume IX, Comparisons, Survey and Conclusions.

__________________________

Course Enrollment
1907-08

Social Ethics 1. Professor Peabody and Dr. Rogers. — Social Ethics. The problems of Poor-Relief, the Family, Temperance, and various phases of the Labor Question, in the light of ethical theory.

Total 108: 3 Graduates, 13 Seniors, 44 Juniors, 38 Sophomores, 2 Freshman, 8 Others.

Source: Harvard University. Report of the President of Harvard College, 1907-1908, p. 69.

__________________________

SOCIAL ETHICS 1
Year-end Examination 1907-08

This paper should be considered as a whole. The time should not be exhausted in answering a few questions, but such limits should be given to each answer as will permit the answering of all the questions in the time assigned.

  1. The economic doctrines of Carlyle and Ruskin compared and criticized.
    [cf: “Past and Present” by Thomas Carlyle; “Unto this Last” by John Ruskin]
  2. The philosophies of the anarchist and the communist compared.
  3. The political origins of the Labor Question in Great Britain.
  4. The German school of Socialism; its philosophy of history, its principles and its demands.
  5. French and English precedents in Arbitration and Conciliation, applied to the circumstances of the United States. (Lectures, and Adams & Sumner, pp. 289-305.)
  6. The progress of Labor Legislation in the United States, and its relation to the doctrines of free contract and class legislation. (Adams & Sumner, p. 466 ff.)
  7. The “third party” to industrial disputes; and the American method of safeguarding its interests.
  8. The Canadian Industrial Disputes Investigation Act; its intention, limitations, and results.
  9. The German system of Workingmen’s Insurance, its principles, methods, and applicability to the United States.
  10. Four types of Industrial Partnership; their historical sequence, and relative importance.
  11. The relation of the Drink Problem to poverty, crime and nationality, in the United States. (Summary of the Liquor Problem, ch. 4.)

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 8, Bound vol. Examination Papers 1908-09 (HUC 7000.25), pp. 58-59.

Image Source: Harvard University Archives.  Francis Greenwood Peabody [photographic portrait, ca. 1900], Colorized by Economics in the Rear-view Mirror.

Categories
Economists Harvard M.I.T. Transcript Undergraduate

Harvard. Economics PhD alumnus, Douglass Vincent Brown, 1932

The lifespan of the sub-field of labor economics, industrial relations (collective bargaining and arbitration), very neatly coincided with the career of Douglass Vincent Brown (1904-1986). He was educated at Harvard College (A.B., 1925) and trained in the Harvard Graduate School of Arts and Sciences (A.M., 1926; Ph.D., 1932). After a few years of teaching at the Harvard Medical School, Brown was hired by M.I.T. in 1938 as an assistant professor of industrial relations and there rose through the ranks to become its first Sloan Professor of Management in 1946. He became professor emeritus in 1969.

What makes this post relatively unique is that it provides a complete picture of Brown’s educational progress from his college preparation through Harvard undergraduate years and graduate school as seen in his transcripts. Names of courses and professors have been added. A timeline of Douglass Vincent Brown’s life has also been appended to the post.

_______________________________

On Industrial Relations

Issues in Labor Policy. Essays in Honor of Douglass Vincent Brown. Edited by Stanley M. Jacks, M.I.T. Press, 1971. Publications and papers listed pp. xii-xiii.

Chapter 7. John G. Turnbull, “Reflections on a Generation of Work in the Field of Labor Economics”, pp. 165-177.

Chapter 1. Douglas Vincent Brown and Charles Myers, “Historical Evolution”,  in Public Policy and Collective Bargaining, ed. by Joseph Shister, Benjamin Aaron, and Clyde W. Summers,  Industrial Relations Research Association, Publication No. 27, 1962, pp. 1-27.

Fun fact: Douglas Vincent Brown was George Shultz’s thesis advisor.

_______________________

HARVARD UNIVERSITY
DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

Application for Candidacy for the Degree of Ph.D.

[Note: Boldface used to indicate printed text of the application; italics used to indicate the handwritten entries]

I. Full Name, with date and place of birth.

Douglass Vincent Brown, Wilkes-Barre, Penn. May 16, 1904.

II. Academic Career: (Mention, with dates inclusive, colleges or other higher institutions of learning attended; and teaching positions held.)

Harvard University, 1921-27

III. Degrees already attained. (Mention institutions and dates.)

A.B., Harvard 1925
A.M., Harvard 1926

IV. General Preparation. (Indicate briefly the range and character of your under-graduate studies in History, Economics, Government, and in such other fields as Ancient and Modern Languages, Philosophy, etc. In case you are a candidate for the degree in History, state the number of years you have studied preparatory and college Latin.)

Economics A, Economics B, Economics C, Ec. 6a, Economics 2a, Economics 3, Economics 5, Economics 6b, Economics 8.
History 1,  History 32b, Gov’t 1.
English A, English 31, English 41.
Social Ethics 4, German A, Philosophy 1a, Anthropology 1.

V. Department of Study. (Do you propose to offer yourself for the Ph.D., “History,” in “Economics,” or in “Political Science”?)

Economics.

VI. Choice of Subjects for the General Examination. (State briefly the nature of your preparation in each subject, as by Harvard courses, courses taken elsewhere, private reading, teaching the subject, etc., etc.)

  1. Economic Theory & Its History. Ec. 11, Ec. 14, Ec. 15. Private Reading.
  2. Statistics. Ecc. 1a, Ec. 41. Private Reading.
  3. Sociology. Ec. 8, Ec. 12a. Private Reading.
  4. Money and Banking. Ec. 3, Ec. 38. Private Reading.
  5. American History, since 1789. History 32b, History 55. Private Reading.
  6. (Labor Problems.) Ec. 6a, Ec. 6b, Ec. 34

VII. Special Subject for the special examination.

Labor Problems

VIII. Thesis Subject. (State the subject and mention the instructor who knows most about your work upon it.)

Restriction of Output. Family Allowances. Professors Taussig and Ripley.

IX. Examinations. (Indicate any preferences as to the time of the general and special examinations.)

Early in the second half-year, 1926-7. [Added later:] Wednesday, March 2, 1927. Thurs. April. 28/32.

X. Remarks

[Added later:]

Professors
Taussig, chairman
Bullock
Ford (James)
Schlesinger
Persons.

Signature of a member of the Division certifying approval of the above outline of subjects.

[signed] F. W. Taussig

*   *   *   [Last page of application] *   *   *

[Not to be filled out by the applicant]

Name: Douglass Vincent Brown.

Approved: January 21, 1927.

Ability to use French certified by Professor A. E. Monroe. February 7, 1927.

Ability to use German certified by Professor A. E. Monroe. February 7, 1927.

Date of general examination March 2, 1927, Passed – F.W.T.

Thesis received April 1, 1932

Read by Professors Taussig and Ripley

Approved April 25, 1932

Date of special examination Thursday, April 28. Passed – F.W.T.

Recommended for the Doctorate June 9, 1932

Degree conferred June 23, 1932

Remarks.  [left blank]

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Certification of reading knowledge
of French and German for Ph.D.

HARVARD UNIVERSITY
Department of Economics

Cambridge, Massachusetts
Feb. 7, 1927

Mr. D. V. Brown has this day passed a satisfactory examination in the reading of French and German as required of candidates for the doctor’s degree.

[signed]
A. E. Monroe

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Passed General Examination

HARVARD UNIVERSITY
Department of Economics

Cambridge, Massachusetts
March 4, 1927

To the Chairman of the
Division of History, Government, and Economics,

As chairman of the committee for the general examination in economics of Mr. Douglass V. Brown, I have to report that the committee unanimously voted to accept the examination as satisfactory. Mr. Brown’s showing was in every respect creditable.

Very truly yours,
[signed]
F. W. Taussig

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Passed Special Examination

HARVARD UNIVERSITY
Department of Economics

Cambridge, Massachusetts
April 30, 1932

Dear Professor Carver,

As chairman of the committee appointed for the examination in the special field of Douglass V. Brown, candidate for the degree of Doctor of Philosophy, I have to report that Mr. Brown passed the examination to the entire satisfaction of the committee. His showing was excellent. The committee also agreed that his thesis was of high quality.

Very truly yours,
[signed]
F. W. Taussig

Professor T. N. Carver
772 Widener Library
Cambridge, Massachusetts

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Undergraduate Transcript
of Douglass V. Brown

HARVARD COLLEGE
Record of Douglas V. Brown
for the years 1921-25

(Date) February 28, 1927

ADMISSION RECORD
SUBJECT
Elementary
Advanced
Grade
Units
Grade
Units
English. Part A, II

90
85

 3

Greek
Latin (1.2.4)

90

3
German
French

80

 2 74

1
History (anc.)

68

1
Algebra

100

 2 92

½
Plane Geometry

93

1
Solid Geometry
Plane Trig.

72
98

½
½
Physics

A
97

1
Chemistry
Geography

70

½
Admission Conditions:— [left blank]
 

YEAR 1921-22
Freshman
Grade
               Subject
Course
Half-course
English A

B
Chemistry A

B
German A

B
History 1

B
Mathematics C

A
 

YEAR 1922-23
Sophomore
Grade
               Subject
Course
Half-course
Anthropology 1

B
Economics A

B
English 31

B
Government 1

B
Mathematics 2

A
 

YEAR 1923-24
Junior
Grade
               Subject
Course
Half-course
Economics 3

B
Economics 8

A
Economics 6a1

B
Economics 6b2

A
English 41

A
Philosophy 1a2

A
Social Ethics 4a1

A
 

YEAR 1924-25
Senior
Grade
               Subject
Course
Half-course
Economics B1

A
Economics C hf

B
Economics 2a1

B
Economics 52

Exc(C)
Economics 12a1

A
History 32b2

Exc(B)

Concentration Subject:— Economics

Passed General Examinations in:— History, Government, and Economics

[…]

Received A.B. Degree:— magna cum laude at Commencement 1925

[…]

The standing of every student in each of his courses is expressed, on the completion of the course, by one of five grades, designated respectively by the letters A,B,C,D, and E; A and B are honor grades; C is passing; D passing but unsatisfactory; E failure. “Abs” indicates failure to obtain credit for the course, owing to absence from the final examination.

[…]

(   ) indicates the quality of the work in the course up to the time of the final examination, from which the student was excused.

Sixteen full courses, in addition to the prescribed English Composition, are required for the degree of Bachelor of Arts, or Bachelor of Science. From four to six full courses (or their equivalent in half-courses) constitute a full year’s work. An average of nine hours each week (normally three hours of classroom work and six hours of preparation) for thirty-six weeks is the approved amount of work for the ordinary student in a single full course.

C. N. GREENOUGH, Dean
By [signed] G. G. Benedict

Harvard University Archives. Division of History, Government & Economics, Ph.D. Degrees Conferred 1929-30. (UA V 453.270), Box 12.

_______________________________

Graduate School of Arts and Sciences
Record of Douglass Vincent Brown

First Registration: 25 September 1925

1925-26
Grades
First Year
Course
Half-Course

Economics 1a

A

Economics 11

A

Economics 38

A

Economics 412

A

History 55

A minus

 

1926-27
Grades
Second Year
Course
Half-Course

Economics 14

cr.

Economics 151

A

Economics 20 (F.W.T.)(2 co.)

AA

Economics 34 (1st half)

A

Henry Lee Memorial Fellowship

1927-28
Grades
Third Year
Course
Half-Course

Economics 20 (F.W.T.)

A

Inst. in Economics and Tutor in the Div. of H., G & E.
$1500

1928-29. Sheldon Fellow.

Source: Harvard University Archives. Graduate School of Arts and Sciences. Record Cards of Students 1895-1930. (UA V 161.272.5), Box 2, Belding-Burton.

__________________________

Harvard Course Names and Instructors

1921-22

English A. Rhetoric and English Composition, Oral and Written. Professor Murray, general direction of Course A.

Chemistry A. Elementary Chemistry. Professor Lamb and others.

German A.Elementary Course. Professor Bierwirth and others.

History 1. European History from the Fall of the Roman Empire to the Present Time. Professor Haskins and others.

Mathematics C. Analytic Geometry; Introduction to the Calculus. Section I: Associate Professor Bouton and Mr. LaPaz; Section II: Associate Professor Kellogg and Dr. Walsh.

1922-23

Economics A. Principles of Economics. Asst. Professor Burbank, and Messrs. Masson, Blackett, Fagg, Heath, and Chamberlin, with lectures on selected subjects by Professor Taussig.

Anthropology 1. General Anthropology. Professors Dixon and Tozzer, and Asst. Professor Hooton, assisted by Mr. Ghua.

English 31. English Composition. Professor Hurlbut.

Government 1. Constitutional Government. Professors Munro and Holcombe, assisted by Messrs. Wells, McClintock, McKaughan, and Pollock.

Mathematics 2. Differential and Integral Calculus; Analytic Geometry. Professors Huntington, Birkhoff, and Asst. Professor Graustein..

1923-24

Economics 3. Money, Banking, and Commercial Crises. Professor Young.

Economics 8. Principles of Sociology. Professor Carver.

Economics 6a1. Trade-Unionism and Allied Problems. Professor Ripley.

Economics 6b2. The Labor Movement in Europe. Dr. Meriam.

English 41. English Literature from the Elizabethan times to the present. Professor Bliss Perry, assisted by Mr. Bacon and Taeusch.

Philosophy 1a2. Introduction to Philosophy. Asst. Professor Lewis.

Social Ethics 4a1. Problems of Race and Immigration in America: Americanisation. Dr. Carpenter.

1924-25

Economics B1. Economic Thought and Institutions. Asst. Professor A. E. Monroe.

Economics C hf. Theses for Distinction. Members of the Department.

Economics 2a1. European Industry and Commerce since 1750. Professor Gay, assisted by Mr. Gilbert.

Economics 52. Public Finance. Associate Professor Bullock.

Economics 12a1. Problems in Sociology and Social Reform. Professor Carver.

History 32b2. American History: The Development of the Nation, 1840 to the Present Time. Professor Schlesinger (University of Iowa).

1925-26

Economics 1a. Statistics. Asst. Professor Crum.

Economics 11. Economic Theory. Professor Taussig.

Economics 38. Principles of Money and Banking. Professor Young.

Economics 412. Statistical Theory and Analysis. Asst. Professor Crum.

History 55. Social and Intellectual History of the United States. Professor Schlesinger.

1926-27

Economics 14. History and Literature of Economics to the year 1848. Professor Bullock.

Economics 151. Modern Schools of Economic Thought. Professor Young.

Economics 20. Two Research Seminars with Frank William Taussig.

Economics 34. (First half) Problems of Labor. Professor Ripley.

1927-28

Economics 20. Research Seminar with Frank William Taussig.

Source: Harvard University. Courses of Instruction of the Faculty of Arts and Sciences, 1921-22 and Report of the President of Harvard College for 1922-23 through 1926-27.

__________________________

Douglass Vincent Brown
Timeline of his education and career

1904. Born May 16 in Wilkes-Barre, Pennsylvania.

1918-21. Wyoming Seminary college preparatory school, Kingston, Pennsylvania.

1925. A.B. magna cum laude, Harvard.

1926. A.M. in economics, Harvard.

1926-27. Henry Lee Memorial Fellow, Harvard.

1927-33. Instructor and tutor of economics, Harvard University.

1932. Ph.D. in economics, Harvard University. Thesis: “Family Allowances.”

1933-38. Assistant professor of medical economics, Harvard Medical School.

1938-40. Assistant professor of industrial relations, M.I.T.

1940-43. Associate professor of industrial relations, M.I.T.

1941. Member of presidential mission sent to Moscow under W. Averell Harriman to organise Lend-Lease deliveries.

1942-45. Consultant to Departments of Labor and War. Advisory posts for the Council of National Defence and Office of  Production Management.

1943-46. Professor of industrial relations, M.I.T.

1944-45. Public member of the New England Regional War Board.

1944. Named as Fellow of the American Academy of Arts and Sciences.

1946-. Named first Albert P. Sloan Professor of Management at M.I.T. Switched from “Economics and Social Science” to “Business and Engineering Administration.”

1947. Member of the Slichter Commission that issued a report leading to the 1948 “Slichter Law” which had the goal of reducing industrial disputes. It would have allowed the governor of Massachusetts to seize an industry if after 15 days there was ­“a menace to public health or safety” due to a strike.

1947. Charter member of National Academy of Arbitrators.

1948. Appointed by the governor of Massachusetts as a moderator to resolve a major trucking strike in New England. Application of the “Slichter Law” was avoided when the truckers agreed to continue moving food and fuel.

1959-60. Ford Foundation visiting professorship of industrial relations at the University of Chicago School of Business.

1969-. Professor emeritus, M.I.T.

1970. President of the Industrial Relations Research Association.

1986. Died March 21 in Brookline, Massachusetts. Obituary in The Boston Globe, 23 March 1986, p. 87.

Image Source: MIT Museum. Portrait photo of Douglass Vincent Brown from  1946.

Categories
Exam Questions History of Economics Princeton

Princeton. History of Economic Thought General Exams for Ph.D. 1981, 1986

I believe the history of economics is too important to be left exclusively in the hands of either historians or economists, but I also believe that not a whole lot would get done if we had to wait for scholars with the right blend of talents and skills, given the constraints of time and the institutional realities of modern universities. Nonetheless there has been the one or other colleague who actually contributed to the development of economics in a scientific sense and has thought long and hard about the ideas of those upon whose shoulders we all stand. William J. Baumol was one such economist. The history of economic thought was one polished arrow in his teaching quiver.

This post provides a transcript of the two Ph.D. field exams in the history of economic thought at Princeton that I found in Baumol’s papers at the Economists’ Papers Archive in Duke University’s Rubenstein Rare Book & Manuscript Library. The 1981 exam appears to have only run one page and just might be missing a few questions on a second page not seen, though I find that possibility less likely than it only was one page long.

In an earlier post you can find the field exam from January 1987 and a reading list for his course from the fall semester of 1988.

________________________

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy
History of Economic Thought

October 1981

3 hours

  1. Discuss Ricardo’s “93 percent Labor Theory of Value.”
    1. In what sense was the Labor Theory taken to approximate the true determination of equilibrium price relationships?
    2. How does this relate to Ricardo’s views about the relationship between wages and profits?
  2. Describe Marx’s use of the Tableau Économique.
    1. Briefly describe the working of the tableau.
    2. Describe the working of the Marxian model that emerged from the tableau.
    3. Indicate at least one use that has been made of the Marxian model.
  3. In one sentence for each, give some information about the work of the following writers:
    1. Nassau Senior
    2. Jules Dupuit
    3. John Bates Clark
    4. Enrico Barone
    5. Knut Wicksell
  4. Classical and neoclassical economists considered free trade to be superior to protectionism from the viewpoint of the general welfare.
    1. How did Pigou measure the general welfare in this sort of analysis?
    2. When the free trade issue was discussed by earlier writers did they usually discuss this measurement problem to any substantial degree?
    3. On what grounds was the Pigouvian approach criticized?
    4. What alternative was offered in the “new welfare economies2 of Hicks and Kaldor?

________________________

PRINCETON UNIVERSITY
Department of Economics

General Examination
for the Degree of Doctor of Philosophy
History of Economic Thought

Time: 3 hours

January 1986

  1. (for Peter Rathjens) Earlier writings on rent focussed on rent payments as a reward to units of superior quality that was attributable to the heterogeniety of the resource. Thus, land was alone among inputs in the focus upon its heterogeniety. Discuss the role of this issue in later writings and the degree to which they did or did not treat land as essentially different from all other inputs which of them, if any, concluded that there is such a thing as an “absolute” rent (in contradistinction to differential rent)?
  2. (for Jai-June Kim) Validity of the infant industry argument for tariffs as a benefit to the general public required that when the industry grows up it not merely yield net benefits, but that they be more than sufficient to offset the welfare lost during the period of protection. Was this point recognized by those who wrote on the subject? If so, by whom? Discuss what other qualifications some of the writers raised in relation to the argument and how they treated the way in which the issue had been analyzed by others.
  3. Discuss the role of alienation in Marx. In which of his writings was it discussed? Does the term always refer to the same phenomenon? How might it relate to accumulation and, consequently, to the “Laws of motion of capitalism?”
  4. Ricardo’s test of the labor theory of value was whether a rise in wages will change the relative prices of commodities. Explain the logic of this test. What does Ricardo conclude from the test about the validity of the labor theory in reality? Why was this way of looking at the matter of importance to Ricardo?
  5. Describe the tasks that Adam Smith considers to constitute the proper roles of government. Was he an extreme or a moderate advocate of laissez-faire? What is the logic of his arguments for governmental economic activity? How do they compare with modern analysis of the subject?
  6. In one sentence each characterize some of the work of the following:

a) Cantillon
b) Quesnay
c) Menger
d) Wesley Mitchell
e) Kondratieff

  1. (Jeehwan Rhee) Summarize some of Malthus’ arguments on the issue of general overproduction. Indicate (giving specific examples) to what extent Malthus’ arguments anticipate those of Keynes.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archive. William J. Baumol Papers, Box 20, Folder “Exams 1980-89”.

Image Source:  Cropped from portrait of William J. Baumol in 1981 published in his obituary published in The New York Times, May 10, 2017.

Categories
Uncategorized

Completed post for Harvard PhD (1923), Harry Edward Miller now posted

Harvard. Economics Ph.D. alumnus Harry Edward Miller, 1923

Categories
Uncategorized

oops mistake

please disregard the last post,  I meant to save a working copy that contains information from a previous post for a different Harvard PhD alumnus that I am updating.

Categories
Brown Economists Harvard

Harvard. Economics Ph.D. alumnus Harry Edward Miller, 1923

Today we meet the economics Ph.D. alumnus Harry Edward Miller who was an Allyn A. Young dissertation student awarded a Harvard Ph.D. in 1923. Miller went on to become the Eastman professor of political economy at Brown University. He was only forty years old at the time of his death that resulted from hemorrhaging, a complication from a pancreaticoduodenectomy, probably attempted because of pancreatic cancer (cause of death information from death certificate).

This post provides the entire record for Harry Edward Miller found in the files of the Division of History, Government and Economics at Harvard. Bonus content includes the identification of all his graduate school courses and instructors plus a chronology of Miller’s life and career.

_______________________

HARVARD UNIVERSITY
DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

Application for Candidacy for the Degree of Ph.D.

[Note: Boldface used to indicate printed text of the application; italics used to indicate the handwritten entries]

I. Full Name, with date and place of birth.

Harry Edward Miller, born October 11, 1897 at Boston Mass.

II. Academic Career: (Mention, with dates inclusive, colleges or other higher institutions of learning attended; and teaching positions held.)

Boston University, 1915-19
Harvard University, Graduate School of Arts & Sciences 1919-21

III. Degrees already attained. (Mention institutions and dates.)

A.B., Boston University, 1919
A.M., Harvard University, 1920

IV. General Preparation. (Indicate briefly the range and character of your under-graduate studies in History, Economics, Government, and in such other fields as Ancient and Modern Languages, Philosophy, etc. In case you are a candidate for the degree in History, state the number of years you have studied preparatory and college Latin.)

Full-year courses in Modern & Medieval European History, American History, Comparative Government. Full-year courses in Principles of Economics, and half-year courses in Public Finance, Economic History of the U.S., Socialism, History of Economic Theory.
4 years of high-school Latin and one of college.
3 years of high-school French and one of college.
2 years of high-school German and 3 of college.

V. Department of Study. (Do you propose to offer yourself for the Ph.D., “History,” in “Economics,” or in “Political Science”?)

Economics.

VI. Choice of Subjects for the General Examination. (State briefly the nature of your preparation in each subject, as by Harvard courses, courses taken elsewhere, private reading, teaching the subject, etc., etc.)

  1. Economic Theory and Its History. (Econ. 11, 14, and 15. Half-year undergraduate course at Boston University in the history, full-year course in the theory.
  2. Economic History since 1750 (Econ. 2 with additional reading and a half-year undergraduate course at Boston Univ.).
  3. Statistical Method and its Application (Econ. 41).
  4. Public finance (Econ 31 and a half-year undergraduate course at Boston University).
  5. History of Political Theory. (Gov’t 6).
  6. Money, Banking and Commercial Crises (Econ. 3 with additional reading, and Econ 382 hf. (to be taken during second semester of this year))

VII. Special Subject for the special examination.

Money, Banking and Commercial Crises. (Econ.3)

VIII. Thesis Subject. (State the subject and mention the instructor who knows most about your work upon it.)

To be determined.
[added by someone else] “Theories of Banking in the United States before the Civil War.” (with Professor Young)

IX. Examinations. (Indicate any preferences as to the time of the general and special examinations.)

I should prefer the general examination in the late spring of this year.

X. Remarks

[left blank]

Signature of a member of the Division certifying approval of the above outline of subjects.

[signed] Edmund E. Day

*   *   *   [Last page of application] *   *   *

[Not to be filled out by the applicant]

Name: Harry E. Miller.

Approved: January 25, 1921.

Ability to use French certified by C. J. Bullock, March 28, 1921.

Ability to use German certified by C. J. Bullock, March 28, 1921.

Date of general examination Thursday, 3 November 1921, passed – A.A. Young

Thesis received April 1, 1923

Read by Professors Young, Sprague and

Approved Bullock

Date of special examination May 25, 1923. Passed – A.A. Young

Recommended for the Doctorate June 5, 1923

Degree conferred 21 June 1923

Remarks.  [left blank]

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Certification of reading knowledge
of French and German for Ph.D.

HARVARD UNIVERSITY
Department of Economics

F. W. Taussig
T. N. Carver
W. Z. Ripley
C. J. Bullock
A. A. Young
W. M. Persons
E. E. Day
J. S. Davis
H. H. Burbank
A. S. Dewing
E. E. Lincoln
A. E. Monroe
A. H. Cole

Cambridge, Massachusetts
March 28, 1921

My dear Haskins:

I have this morning examined Mr. Henry E. Miller, and find that he has such a knowledge of French and German as we require of candidates for the doctorate.

Very sincerely yours
[signed]
Charles  J. Bullock

Dean C. H. Haskins

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Miller provides title of his dissertation

Apr. 11, 1921

Division of Hist., Govt. and Economics
Mrs. Dorothy Cogswell Sec’y.

My dear Mrs. Cogswell:

The title of my Ph.D. thesis is to be, “The History of Banking Theory in America before 1860.” I informed the secretary of the Dept. of Economics to that effect and am sorry it did not occur to me that you might not be advised through her.

Sincerely yours,
[signed] Harry E. Miller

*  *  *  *  *  *  *  *  *  *  *  *  *  *

General Exam Postponed

COPY

HARVARD UNIVERSITY
DIVISION OF HISTORY, GOVERNMENT,
AND ECONOMICS

20 May, 1921

My dear Sir:

The General Examination of Mr. Harry E. Miller, which was scheduled for Wednesday, 25 May, has been postponed until next year.

Very truly yours,
CHARLES H. HASKINS

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Request to Professors to join general examination committee

Copy

8 October 1921

My dear Sir:

Can you serve as one on the committee for the general examination of Harry Edward Miller? The committee will consist of Professor Young, Chairman, Professor Bullock, Professor McIlwain, Professor Usher and Professor Taussig. The examination will be on Tuesday, November 3.

The subjects which Mr. Miller offers are

Theory and its History
Economic History since 1750
Statistical Method and its Application on Public Finance
History of Political Theory
Money, Banking and Commercial Crises.

Very truly yours,

Professor [“Young”, “Bullock”,“Usher”, “Taussig”,“McIlwain” added here to the individual letters]

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Bullock declares willingness to serve on the general exam committee

HARVARD UNIVERSITY
Committee on Economic Research
Cambridge, Massachusetts, U.S.A.

Charles J. Bullock, Chairman
W. M. Persons, Editor
A. E. Monroe, Asst. Editor
F. Y. Presley, Business Mgr.
Charles F. Adams
Nicholas Biddle
Frederic H. Curtiss
Wallace B. Donham
Ogden L. Mills
Eugene V. R. Thayer

October 10, 1921

Professor Charles H. Haskins,
24 University Hall,
Cambridge, Massachusetts.

My dear Sir:

In reply to your letter of October 8th I may say that I will serve on the committee for the general examination of Henry Edward Miller on November 3rd.

Very truly yours,
[signed] Charles J. Bullock/A.H.C.

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Usher declares willingness to serve on the general exam committee

THE COLLEGE OF BUSINESS ADMINISTRATION
OF
BOSTON UNIVERSITY
525 Boylston Street
Boston

Department of Economics

Oct 11, 1921

Dear Prof. Haskins:

I shall be glad to serve on the committees for the general examinations of Mr. Miller and Mr. Bober; though on Tuesday Nov. 3 I should not be able to attend earlier than 3.30 P.M.

As no date has apparently been set for Mr. Bober’s examination, I may say that my class obligations here would make it impossible to attend either on Tuesdays or Fridays before 3.30.

Sincerely yours,
[signed] Abbott Payson Usher

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Young available for the proposed dates of the general exams

6 Hilliard Street, Cambridge, Mass.,
October 11, 1921.

Dear Haskins,

I have your notes informing me of the dates set for the general examinations of Miller and Bober. I have set aside the two dates mentioned, Tuesday, [marginal note “/Thursday?”] November 3, and Thursday, October 27

Yours sincerely,
[signed]
Allyn A. Young

Dean Charles H. Haskins
Graduate School of Arts and Sciences
University Hall,
Cambridge, Mass.

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Miller informed of date
for his general examination

Copy

13 October 1921

My dear Mr. Miller:

Your general examination will take place on Thursday, 3 November. I am very sorry that it was impossible to arrange for this earlier in the week as you desired.

Very truly yours,
[unsigned]

Mr. H. E. Miller

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Passed General Examination

6 Hilliard Street, Cambridge, Mass.,
November 5, 1921.

Dear Dean Haskins,

On behalf of the committee in charge of the general examination of Mr. Harry Edward Miller for the degree of Ph.D., I beg to report that Mr. Miller passed the examination, which was held on Thursday, November 3.

Yours sincerely,
[signed]
Allyn A. Young

Dean Charles H. Haskins
Graduate School of Arts and Sciences
University Hall,
Cambridge, Mass.

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Dean Haskins asking Young about the general quality of Miller’s general exam

Copy

8 November 1921

Dear Young:

I have your letter of 5 November, notifying me that H. E. Miller passed his general examination.

Could you without inconvenience let me know about the general quality of the examination and whether he had any margin. The Division desires a record of this kind for reference when a candidate comes to the later stages of his work, particularly the special examination, when the Committee may have no personal recollection of the general examination.

Sincerely yours,
[“x” for Haskins]

Professor A. A. Young

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Supplementary Information for
General Examination of H. E. Miller

6 Hilliard Street, Cambridge, Mass.,
November 21, 1921.

Dear Haskins:

I have your note of November 8 asking for supplementary information respecting H. E. Miller’s general examination for the Ph.D. degree.

It was the unanimous opinion of the committee that Miller’s examination was unusually creditable. He showed himself well prepared in each of the subjects offered; he thought clearly; and he was always in command of himself and of his information. In several fields the examination could easily be called brilliant; in all fields it showed unusual competence.

Yours sincerely,
[signed]
Allyn A. Young

Professor Charles H. Haskins, Dean
Graduate School of Arts and Sciences
24 University Hall,
Cambridge, Mass.

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Request to Prof. Vanderblue to join special examination committee

Copy

14 May 1923

My dear Professor Vanderblue:

Will it be possible for you to serve as a member of the committee for the special examination of H. E. Miller for the Ph.D. in Economics, to be held on Friday, 25 May, at 4 p.m., to take Professor Dewing’s place? Professor Dewing is to be away on that date, and so is unable to attend. I am sending you an examination pamphlet herewith. You will find Mr. Miller’s name on page 20.

Very truly yours,
Secretary of the Division

Professor H. B. Vanderblue

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Request to Prof. Vanderblue to join special examination committee

Copy

17 May 1923

My dear Professor Young:

Mr. H. E. Miller’s examination is on Friday, the 25th, but his thesis is not in yet. I gave it to Professor Sprague to read first, and Professor Bullock’s secretary tells me that it is in her office, signed by Professor Bullock and yourself. Can you tell me when it will be ready to come back to this office?

Very truly yours,
Secretary of the Division

Professor A. A. Young

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Reminder to Young: special examination

HARVARD UNIVERSITY
Division of history, Government, and Economics

Cambridge, Massachusetts
22 May 1923

My dear Professor Young:

This is to remind you that you are chairman of the committee for the special examination of H. E. Miller for the Ph.D. in Economics, to be held on Friday, 25 May, at 4 p.m., in Widener U. I enclose Mr. Miller’s papers herewith, also an envelope for their return.

Very truly yours,
[signed]
Esther W. Hinckley
Secretary of the Division

P.S. Professor Vanderblue is to take Professor Dewing’s place on the committee.

Professor A.A. Young

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Reminder to Miller: special examination

Copy

Cambridge, Massachusetts
22 May 1923

My dear Mr. Miller:

This is to remind you that your special examination for the Ph.D. in Economics, to be held on Friday, 25 May, at 4 p.m., in Widener U. Professor Vanderblue is to take Professor Dewing’s place on the committee.

Very truly yours,
Secretary of the Division

Mr. H. E. Miller

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Passed Special Examination

6 Hilliard Street,
Cambridge, Massachusetts
May 26, 1923.

My dear Haskins,

On behalf of the committee appointed to conduct the special examination of Mr. Harry E. Miller for the degree of Ph.D., I beg to report that Mr. Miller passed the examination. He made a very creditable showing, – distinctly above the average.

Yours sincerely,
[signed]
Allyn A. Young

Professor Charles H. Haskins, Dean
Graduate School of Arts and Sciences
University Hall.

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Record of Harry Edward Miller

Grades
1919-20 Course

Half-Course

Economics 2a1

B plus

Economics 2b2

A minus

Economics 11

A

Economics 31

B plus

Economics 41

A

 

1920-21 Course

Half-Course

Economics 14

A minus

Economics 15

A

Economics 382

A

Government 6

A

 

1921-22 Course

Half-Course

Economics 20 (2 co.)

AA

 

1922-23 Course

Half-Course

Economics 20

[left blank]

Source: Harvard University Archives. Division of History, Government & Economics, Ph.D. Degrees Conferred 1929-30. (UA V 453.270), Box 09.

__________________________

Course Names and Instructors

1919-20

Economics 2a 1hf. European Industry and Commerce in the Nineteenth Century. Dr. E. E. Lincoln.

Economics 2b 2hf. Economic History of the United States. Dr. E. E. Lincoln.

Economics 11. Economic Theory. Professor Taussig.

Economics 31. Public Finance. Professor Bullock.

Economics 41. Statistical Theory and Analysis. Asst. Professor Day

1920-21

Economics 14. History and Literature of Economics to the year 1848. Professor Bullock.

Economics 15. Modern Schools of Economic Thought. Professor Young.

Economics 382. Selected Monetary Problems. Professor Young.

Government 6. History of Political Theory. Professor McIlwain.

1921-23

Economics 20. Research Seminars.

Source: Harvard University. Report of the President of Harvard College for 1919-20, 1920-21.

__________________________

Harry Edward Miller
Timeline of his life and career

1897. Born [Aaron Miller] on October 10 in Boston.

1918. Military service.

1919. A.B. Boston University.

1920. A.M. in economics Harvard University.

1923. Ph.D. in economics, Harvard. (Report of the President of Harvard College, 1922-23, p. 52)

1923-24. Assistant Professor, Clark University. Cf. Holyoke Daily Transcript (18 Aug 1923). [Note: Unable to find mention of Harry Edward Miller in the relevant Clark University catalogues.]

1924. Joins the Brown economics department at the rank of assistant professor.

1927. Banking Theories in the United States before 1860. Harvard University Press. Revision of Ph.D. thesis.

1928. Appointed associate professor on the Eastman Foundation, Brown University.

1930. Appointed Eastman Professor of Political Economy, Brown University.

1931. Chairman of the Rhode Island special commission for liquor legislation.

1935. Married Rosabelle Winer of New York.

1937. Died November 14 at Beth Israel Hospital in Brookline, Mass.

Sources:  Obituary published in The New York Times (November 15, 1937) and the article “Harry Edward Miller” at online Encyclopedia Brunoniana.

Image Source: The Third Seal of Brown University (1834). The seal is still in use today.

Categories
Economist Market Economists Harvard

Harvard. University Overseer objects to hiring Alvin Hansen. 1937

Harvard’s hiring of Alvin Hansen, the future “American Keynes”, met with disapproval from high up in the U. S. Department of State. The reservations were easily overcome as can be seen in Harvard President Conant’s polite yet firm response to the telegram sent him urging him to block Hansen’s appointment to a tenured professorship.

William Richards Castle Jr. (1878-1963) graduated from Harvard in 1900, was an instructor of English and later Freshman Dean from 1904 to 1913. These Harvard connections helped him later to climb to the top of the U.S. foreign policy establishment. Politically he was fiercely anti-New Deal. From 1935 to 1941 he served as a member of the Harvard Board of Overseers which is why he must have felt it to be both his right and his duty to shoot this late torpedo at Dean John William’s candidate.

The quoted source with a negative opinion of Alvin Hansen’s qualifications was Herbert Feis (1893-1972), who likewise was a Harvard man, A.B. (1916) and Ph.D. (1921). Feis was serving as adviser on economic affairs to the Secretary of State, Henry L. Stimson. Herbert Feis is an interesting enough economics Ph.D. alumnus to warrant a dedicated post here at Economics in the Rear-view Mirror. An unanswered question is what might have accounted for Feis’ low professional esteem regarding Hansen. 

________________________________

WESTERN UNION

1937 MAY 12 PM 12:34
WASHINGTON DC

PRESIDENT CONANT
HARVARD COLLEGE CA

FEIS KNOWS HANSON WELL SAYS HE IS A THOROUGH WORKER WHO TRIES TO BE INDEPENDENT GOOD IN HIS SPECIAL FIELD BUT BY NO MEANS GREAT HE CHOOSES SIGNIFICANT PROBLEMS BUT TREATS THEM SOMEWHAT NARROWLY AS HE HAS LITTLE BACKGROUND IN HISTORY AND GOVERNMENT POLICIES HE GIVES SENSE OF INTELLECTUAL DOGMATISM HAS ABRUPT UNPREPOSSESSING MANNER ANTAGONIZING MANY FEIS THINKS HIM GOOD BET FOR TEMPORARY APPOINTMENT BUT WOULD GREATLY REGRET PERMANENT APPOINTMENT

W R CASTLE.

________________________________

Copy of Conant’s Reply to Castle

June 9, 1937

Mr. W. R. Castle
2200 S Street, N.W.
Washington, D. C.

Dear Mr. Castle:

After receiving your information about Professor Hansen, I proceeded to investigate the  whole question very thoroughly, as I was, of course, very much disturbed by what Dr. Feiss [sic] stated to you in confidence. After making this investigation, I was convinced, in spite of Dr. Feiss’ [sic] negative conclusions, that the appointment was one we should make. In this decision Dean Williams and other members of the Department of Economics agree (of course, no one except Dean Williams knows of your inquiry). I have heard excellent reports on Professor Hansen from other people in the State Department and from economists in other institutions. On the basis of all this evidence, therefore, we have proceeded with the appointment.

I am asking Dean Williams to drop in on you in Washington and discuss certain matters connected with the School and, incidentally, tell you a little more about the matter of Professor Hansen, as I am sure you would be interested in the reasons which led us both to go contrary to the advice which we received through your kindness.

I am deeply appreciative of your having taken the trouble to look into this matter and I am sure you will understand that in all such matters it is a question of weighing the pros and cons which one receives fron different sources.

Very sincerely yours,

[stamp] JAMES B. CONANT

Source:  Harvard University Archives. Records of President James B. Conant, Box 81, Folder “Economics 1936-37”.

Image Source: Alvin Hansen from the Harvard Class Album 1945. Book in the foreground is The Seven Myths of Housing by Nathan Straus that was published in January 1944. The bits of newspaper one can read  /…Tribune…/…by big R.A.F…./…-Day Breathing…/…Novgorod…” so my guess is that the newspaper is from late January 1944. A large-scale R.A.F. attack on Magdeburg and the Soviets recapture of Novgorod both occurred on  January 21, 1922.

Categories
Economics Programs Graduate Student Support Harvard Undergraduate

Harvard. Department of Economics Newsletter. Dunlop, Sept 1964

Just as families produce holiday newsletters to chronicle the comings and goings during the calendar year, economics departments over time have gotten into the habit of documenting the work of the department for each of their academic years. This post provides the report written by John Dunlop for the Harvard Economics Department and published in September 1964. By itself the report represents a single slice of history, but Economics in the Rear-view Mirror makes a special effort to transcribe such reports wherever and whenever they are found to assemble a complete loaf of departmental history.

___________________________

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS NEWSLETTER

Prepared by
Professor John T. Dunlop
Chairman

Published by
THE HARVARD FOUNDATION FOR ADVANCED STUDY & RESEARCH
77 Dunster Street
Cambridge, Massachusetts 02138

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *

ECONOMICS DEPARTMENT NEWSLETTER
SEPTEMBER 1964

UNDERGRADUATE PROGRAM

The undergraduate concentration in Economics in the year 1963-64 increased appreciably as indicated by the following tabulation:

1961-62 1962-63 1963-64
Sophomore Concentrators 90 78 (7) 135 (11)
Junior Concentrators 97 91 (3) 91 (10)
Senior Concentrators 85 100 (3) 94 (3)

(Numbers in parentheses indicate Radcliffe students and are included in the totals).

Enrollment in undergraduate courses in the Department continued at a high level. There were, for instance, 700 students in Economics I in the fall and 678 in the spring term.

After three years as head tutor, Dr. H. Francois Wilkinson, who helped appreciably to improve our undergraduate teaching, accepted a position at Dartmouth. Dr. Lars Sandberg, who was awarded his Ph.D. degree during the year, has been appointed Instructor and head tutor starting July 1, 1964. Dr. Sandberg was an undergraduate concentrator in the Department and was graduated summa cum laude in the class of 1961.

The Allyn Young Prize for 1963-64 was awarded to Mr. Lawrence J. White as the undergraduate concentrating in Economics who submitted the best honors thesis of “summa quality.” His thesis was entitled “Devaluation, Debacle, and Aftermath: The Canadian Dollar, 1960-63.”

Mr. Duncan M. Kennedy was the winner of the John H. Williams Book Prize, which is awarded each year to the outstanding Harvard senior graduating summa cum laude majoring in Economics.

GRADUATE INSTRUCTION

The Department announced a new Graduate Prize fellowship program designed to improve the competitive position in the recruitment of the best graduate students. The program provides for up to 15 prize fellowships to be awarded each year. The students are to be assured four years of financial support; in the typical case the first two years are to be on scholarships at the rate of $3,500 a year and the following two years on part-time teaching assignment. The program was worked out with the initiative and support of Dean Ford and Dean Elder. The Department believes that the program will be particularly helpful to meet the very difficult present problem of financial support in the second year of graduate school. Although it is too early to appraise the results even for the first year, the preliminary indications are that the new program was helpful in improving the quality of our acceptances for the year 1964-65.

The Department announced that it had received a gift to honor Mrs. Selma Goldsmith and had decided to use the funds to provide a prize for the best paper prepared in a graduate seminar. The Goldsmith Prize of $100 will be awarded in October 1964 for the first time for papers completed in the current academic year. The prize paper will also be considered for publication in the Quarterly Journal of Economics.

The Department has been greatly concerned to increase the extent to which graduate students, particularly in their second year, take working seminars in which they write substantial papers and present them for discussion. The Department intends to press students in this direction, making at least one working seminar the normal pattern in the second year. The Department is increasing the number of such seminars to provide more opportunity for students to elect such seminars.

In 1963-64 the Department used a total of $8,000 in subsidized computer funds. This figure represents participation in subsidized computer time by 44 graduate students, 9 undergraduates and 9 members of the junior staff.

For the period July 1, 1963 to June 30, 1964, 34 Ph.D. degrees were awarded in the Department of Economics. The list is attached.

The Wells Prize for 1963-64 was awarded to Dr. Albert Fishlow of the Department of Economics of the University of California (Berkeley) for his manuscript entitled “Railroads and the Transformation of the Anti-Bellum Economy.”

SCIENCE AND TECHNOLOGY: IBM GRANT

A development of considerable potential significance to the Department was the announcement that IBM had agreed to provide Harvard University with $500,000 a year for ten years for a University-wide program in the general field of Science and Technology. Many members of the Department, and members of the junior staff and Ph.D. candidates, do research in areas relevant to this general field. Professors Kaysen and Dunlop of the Department are members of the University-wide committee which prepared the application and which has been appointed by President Pusey to administer the grant.

NEW PERMANENT POSITIONS AND CHANGES IN APPOINTMENTS

Three new professors were added to the senior staff of the Department of Economics from three newly created professorships. Two senior members retired during the year.

On April 4, 1963 Dean Ford authorized the establishment of a new permanent position in the Department. Professor Hollis Chenery of Stanford University and currently with A.I.D., has been appointed to the Department, and he is to be in residence starting with the Spring term 1965. Professor Chenery is a specialist in the fields of economic development and input-output analysis.

On January 20, 1964 the George Gund Professorship of Economics and Business Administration was established jointly in the Faculty of Arts and Sciences (in the Department of Economics) and in the Graduate School of Business Administration. The funds for this new professorship were raised under the leadership of Mr. Dwight Robinson, who had been Chairman of the Visiting Committee for a term expiring June 30, 1963, and Mr. David Rockefeller, who is the current Chairman. Professor John Lintner of the Harvard School of Business Administration was appointed to this new joint professorship and joins the Department with the new academic year. On the average he will devote half of his time to the Department and half to the Business School. Professor Lintner is a specialist in the fields of business decision making and the economic outlook. He will be particularly responsible for an undergraduate course in the Economics of Managerial Decisions.

The Littauer School of Public Administration established during the year a new professorship in the field of economic development and international economic relations. Professor Albert O. Hirschman of Columbia University was appointed to this new professorship and will begin his work in Cambridge in the fall of 1965. Professor Hirschman is to be a member of the Department of Economics and its executive committee.

Two senior members of the Department were retired during the year. Professor Seymour Harris was a Harvard undergraduate, class of 1920, and took his Ph.D. degree here in 1926. Professor Harris had been on the teaching staff of the Department for 40 years, serving as Chairman of the Department in the period 1955 to 1959. Professor Harris joined the staff of the University of California, La Jolla campus, in February 1964.

Professor Overton H. Taylor joined the teaching staff of the Department in 1924, and on his retirement at the end of this academic year has accepted an appointment at Vanderbilt University.

STAFF: VISITING PROFESSORS AND LEAVES

During the academic year the Department’s instructional staff was supplemented from other insitutions by the following: Professor Herbert S. Levine of the the University of Pennsylvania in the field of the Soviet Economy; Professor Edwin Mansfield, who came to us from the Carnegie Institute of Technology, in the field of Quantitative Methods and Econometrics; Professor Zenon S. Zannetos from M.I.T. continued to teach a one-term undergraduate course, the Economics of Managerial Decisions, for a second year; Dr. John Arena from the staff of the Federal Reserve Bank of Boston assisted Professor Duesenberry in a course; and Mr. John J. Mauriel from the Harvard School of Business Administration was in charge of the undergraduate course in accounting in the Spring term.

The following members of the Department were on leave during the year: Professor Bergson was on sabbatical leave at the Center for Advanced Study in the Behavioral Sciences at Stanford; Professor E. H. Chamberlin was on leave in Cambridge with the Frank W. Taussig Research Professorship; Professor Hendrik S. Houthakker was on leave in Western Europe on a Ford Faculty Fellowship as nominated by the Department; Professor Gottfried Haberler was on sabbatical leave in Western Europe during the Spring term. A larger number of permanent members of the Department were in residence than in recent years.

Among the Assistant Professors, Thomas Wilson was on leave throughout the year working with the Royal Commission on Taxation in Ottawa; Elliot Berg was on leave in Cambridge in the Spring term.

During the year 1964-65 Professor George Break of the University of California will be visiting professor teaching in the tax and fiscal policy area; Professor Barry Supple from the University of Sussex in England will teach Economic History in the fall term; and Professor Pieter de Wolff from the Hague and the University of Amsterdam will be Frank W. Taussig Research Professor. Dr. John Arena of the Federal Reserve Bank of Boston will give an undergraduate course on financial institutions from the resources made available by the Political Economy Lectures Fund (1889). Dr. Maureen Brunt from Australia is to be a Visting Lecturer for a two year period working particularly in the field of Comparative Industrial Organization.

PROFESSIONAL AND PUBLIC ACTIVITIES OF THE DEPARTMENT STAFF

Professor Abram Bergson spent the year at the Center for Advanced Study in the Behavioral Sciences at Stanford, and has written a monograph now in the press, entitled The Economics of Soviet Planning. He continues as Director-at-large of the Social Science Research Council, and as a member of its Committee on Economy of Communist China.

Professor Richard Caves published during the year American Industry: Structure, Conduct, Performance, in Foundations of the Modern Economic Series, Prentice Hall. He completed research and writing of Northern California’s Water Industry: Public Enterprise and Scarce Natural Resources (jointly with J. S. Bain, J. Margolis, V. Ostrom) under a grant from Resources for the Future and scheduled for publication in 1965. He served on the Review Committee for Balance of Payments Statistics of the U. S. Bureau of the Budget, and consulted with the Council of Economic Advisers and the Council for Economic Development.

Professor Edward Chamberlin was elected to the Real Academia de Ciencias Economicas y Financieras, Barcelona, and a Communication on “Excess Capacity” was read before the Academy in March 1964 and printed in Italian translation in the Rivista Internazionale di Scienze Economiche e Commerciale, Milan, Spring 1964. He was also re-elected to the American Academy of Arts and Sciences. During the year the eighth edition of his book Theory of Monopolistic Competition was issued by the Harvard University Press, and the second edition of Economic Analysis of Labor Union Power also appeared.

Professor Robert Dorfman was elected President of the Institute of Management Science; he also participated in a Study Week on Econometrics at the Pontifical Academy of Sciences in the Vatican in October 1963.

Professor James Duesenberry’s article on monetary economics, “The Portfolio Approach to the Demand for Money and Other Assets,” appeared in the February 1963 National Bureau of Economic Research Supplement to the Review of Economics and Statistics. He was consultant to the Board of Governors of the Federal Reserve; he continued as consultant to the Treasury and the Council of Economic Advisers; he also continued as Acting Co-Chairman of the Econometrical Model Project of the Social Science Research Council and Co-Director of the Merrill Capital Markets Project at the Harvard Business School.

Professor John T. Dunlop’s article “Job Creation: Private and Public Manpower Policies” appeared in Proceedings of A Symposium on Employment, sponsored by the American Bankers Association. A revised edition of Industrialism and Industrial Man (with three other authors) was published by Oxford University Press, Galaxy Book Edition. Five volumes were published in the year in the Wertheim Series from research projects under Professor Dunlop’s direction: three in the history of labor-management organization and two treating international labor questions. He continued as a member of the President’s Missile Sites Labor Commission and was appointed to the President’s Committee on Equal Opportunity.

Professor Otto Eckstein published Economic Policy in Our Time, with eight European scholars (3 vols.), North Holland Publishing Company; and Public Finance, in Foundations of Modern Economic Series, Prentice-Hall. Professor Eckstein is editor of the Series. He also edited and has written an introduction to Studies in the Economics of Transfer Payments to be published by the Brookings Institution. Professor Eckstein becomes a member of the Council of Economic Advisers on September 1, 1964.

Professor J. Kenneth Galbraith published during the year Economic Development, Harvard University Press and Houghton Mifflin Company. He gave the American Association for the Advancement of Science Distinguished Lecture in December 1963, and gave the Charter Day Address, University of California at Davis, May 1964. He received LL. D. degrees from four universities: University of Massachusetts, Brandeis University, University of California and Loyola College (Baltimore).

Professor Alexander Gerschenkron published during the year a number of articles and chapters in books, including the following: “Agrarian Policies and Industrialization: Russia 1861-1914” in The Cambridge Economic History of Europe, Vol. VI; “Reflections on Economic Aspects of Revolutions,” in Internal War, Harry Eckstein, ed., Glencoe, 1964; “City Economies, Then and Now,” in The Historian and the City, Harvard University Press, 1963. He gave a lecture entitled The Stability of Dictatorships under the auspieces of the Harvard Foundation at Yale, 1963.

Professor Gottfried Haberler completed his term as President of the American Economic Association in December, 1963. He has been on sabbatical leave in the Spring term. He spent a month teaching in the Institute for Advanced Studies in Vienna, and has been lecturing at various universities in Western Europe.

Professor Hendrik Houthakker was awarded the John Bates Clark Medal by the American Economic Association at its annual meetings in December 1963. This medal is awarded every other year “to that economist under the age of 40 who is adjudged to have made a significant contribution to economic thought and knowledge.” Professor Houthakker was on leave throughout the year and spent most of the time in Switzerland working on the Theory of Consumer Choice, which is to be published by Holden, Day late in 1964. With Dr. Lester Taylor of the Department he presented a paper “Projecting Personal Consumption Expenditures in 1970” at the Cleveland Meetings of the Econometric Society, and a second paper “Recent Empirical Experience with Dynamic Demand Function” at the Boston meetings of the Econometric Society. These papers will be published in a volume entitled United States Consumption 1929-1970.

Professor Carl Kaysen returned this academic year from two years’ leave for government service in Washington, but has continued to serve as a Special Consultant to the President. His publications this year include two book reviews: Alfred Sloane, My Years with General Motors, New Republic, February 29, 1964; and Gunnar Myrdal, Challenge to Affluence, Harvard Law Review, June, 1964. In addition, he presented a paper entitled “The New Competition and the Old Regulation” to a Conference in Modern Competitive Theory held by the Wharton School of the University of Pennsylvania in May. The proceedings of that conference will be published shortly.

Professor Simon Kuznets published a number of articles and chapters in various books during the year including: “Notes on Take-Off,” in The Economics of Take-Off Into Sustained Growth, edited by W. W. Rostow, proceedings of a conference held by the International Economic Association, St. Martin’s Press, 1963; “Economic Growth and the Contribution of Agriculture: Note on Measurement,” in The Role of Agriculture in Economic Development, Proceedings of the Eleventh International Conference of Agricultural Economists, London, Oxford University Press, 1963; “Applicacion des las Estimaciones de Renta Nacional en el Analisis y Politica del Crecimiento Economico,” in El Ingreso y La Riqueza, Seccion de Obras de Economia, Fondo de Cultura Economica, Mexico-Buenos Aires, 1963.

Professor Kuznets was elected to the Royal Academy of Sciences, Sweden; he was Chairman of the Committee on Economic Growth, Social Science Research Council and its Committee on the Economy of China. He was also Chairman of the Executive Committee, Board of Trustees, Maurice Falk Institute for Economic Research in Israel; he gave the Haynes Foundation Lectures at the University of California at Riverside, which are to be published by the Harvard University Press.

Professor Wassily Leontief’s publications included “The Structure of Development” in Scientific American, September, 1963; and “Alternatives to Armament Expenditures,” Bulletin of the Atomic Scientists, June, 1964. He participated in a Study Week on Econometrics at the Pontifical Academy of Sciences in the Vatican in October, 1963, was Guest Professor at the Institute for Advanced Studies in Vienna in January, 1964, and lectured in Japan in May as guest of the Nihon Keizai Shimbun.

Professor Edward S. Mason published Foreign Aid and Foreign Policy, which represents the reworking of his Elihu Root Lectures given at the Council on Foreign Relations in May 1963. He was a member of a two-man Steering Committee on a large study called the Coal Transport Study undertaken by the International Bank for the Government of India. Professor Mason was awarded an honorary LL.D. degree by Yale University in June 1964.

Professor John Meyer published the following: Investment Decisions, Economic Forecasting and Public Policy (with Robert Glauber), Division of Research, Harvard Graduate School of Business, 1964; “Investment, Liquidity and Monetary Policy,” (with Edwin Kuh), Impacts of Monetary Policy, Prentice-Hall, 1964; “Competition, Market Structure and Regulatory Institutions in Transportation,” Virginia Law Review, 1964. Professor Meyer is Director of a new formal program of studies in transportation, location and land use problems which has been inaugurated within the Graduate School of Public Administration. This program has put particular emphasis upon the transportation planning problems of the newly industrializing countries. A substantial part of the research program has been financed by a grant from The Brookings Institution with A.I.D. funds.

Professor Thomas Schelling continued to divide his time between the Department of Economics and the Center for International Affairs, his main research interest being conflict theory and military policy. He “unofficially estimates that he may have set a record for war college visits, having lectured at six within the year, to wit: The National War College, Army War College, Air War College, Navy War College, NATO, and the Israeli Defense College.” He also lectured at the Air Command Staff College.

Professor Arthur Smithies published “Inflation in Latin America” in Public Policy. He recently completed a research paper on Program Budgeting for the Rand Corporation, which will be published. He continued as consultant to the Treasury and as Editor of the Quarterly Journal of Economics and Economic Abstracts. Professor Smithies was Visiting Lecturer in Brazil under the auspices of A.ID., and was also Advisor in Argentina under the sponsorship of the Harvard Development Advisory Service.

Ph.D. Degrees in Economics Awarded in 1963-64
Aaron, Henry Jacob “Social Security in an Expanding Economy”
Ahmad, Ziauddin “Deficit-Financing, Supply Response and Inflation in Underdeveloped Countries”
Ahtiala, Kaarlo Pekka “The Short-Term Adjustment Mechanism on the Bond Market”
Almon, Shirley Montag “The Distributed Lag Between Capital Appropriations and Expenditures”
Bateman, Cleveland Worthington “Investment Behavior and the Acceleration Principle”
Bolton, Roger Edwin “Defense Purchases and Regional Growth in the United States”
Bonnen, James Thomas “United States Agricultural Capacity: A General Equilibrium Model for 1965”
Brunt, Maureen Doris “Concentration in the Australian Economy”
Cohen, Benjamin Ira “A Study of the Export Policies of the Indian Government, 1951-52 to 1965-66”
Comanor, William Stephen “The Economics of Research and Development in the Pharmaceutical Industry”
Davie, Bruce Fenwick “State & Local Government Bond Issues Before 1913 – A Study of Increasing Market Perfection”
Dorsey, John Wesley “The Mack Case: A Study in Unemployment”
Eckstein, Salomon “Collective Farming in Mexico”
Edwards, Franklin Richard “Concentration and Competition in Commercial Banking: A Statistical Study”
Eisenmenger, Robert Waltz “The Dynamics of Economic Growth in New England 1870-1960”
Enzer, Hermann “Learning on-the-job: A Process Analysis”
Gandhi, Ved Parkash “Tax Burden on Indian Agriculture”
Glimp, Fred Lee “The Entrepreneureal Concept and the Notion of Creative Leadership”
Hagelin, Edith Hilma “The Swedish Full Employment Policy and Economic Development, 1945-52”
Hartman, Robert William “Demand for the Stock of Non-Farm Housing”
Jack, Andrew Barrie “The Marketing Function of the Innovating Entrepreneur: the Sewing Machine and Garment Industry in the United States”
Johnson, William Arthur “India’s Iron & Steel Industry: A Study of Planned Industrial Growth”
Lithwick, Norman Harvey “Economic Growth in Canada – a Quantitative Analysis”
McGuire, Martin Cyril “Information and Arms Races”
Madjid, Abdul Hadi “A Dynamic Input-Output Model Incorporating Technical Change”
Mallon, Richard Dicks “Economic Development and Foreign Trade of Pakistan”
Perkins, Dwight Heald “Price Formation in Communist China”
Pincus, John Alexis “Economic Aid and International Cost Sharing”
Prescott, James Russell “The Economics of Public Housing: A Normative Analysis”
Ryan, William Francis “Economic Development and the Church in French Canada 1896-1914”
Sakr, Mohamed Ahmed H. “Economic Integration and the Growth of Less-Developed Countries”
Sandberg, Lars Gunnarsson “Swedish Economic Policy in Theory and Practice, 1950-1961”
Shaw, Lawrence Hugh “A Measure of the Effects of Weather on Agricultural Output”
Warden, Charles Browne “Unemployment Insurance: A Statistical Study of Massachusetts Experience”

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archives. Edward H. Chamberlin Papers, Box 17, Folder “Economics Department 1964”.

Image Source: Portrait of John T. Dunlop in Harvard Classbook 1952.

Categories
Exam Questions Harvard Law and Economics

Harvard. Exams for law of industrial relations and commerce. Wyman, 1907-1908

Harvard Law School, ca. 1901

Assistant Professor Bruce Wyman’s course on industrial relations and commercial law was offered as a vocational sop to Harvard economics majors that along with William Morse Cole’s principles of accounting course was intended to help prepare a young Harvard graduate planning to enter a career in business. This could help account for the popularity of the course as seen in its relatively high enrollment — that and its reputation of being something of  a “snap course”.

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From earlier years

1901-02. Autobiographical note, enrollment, course description, syllabus, exams.
1902-03. Obituary, enrollment, course description, exams.
1903-04. Enrollment and exams.
1904-05. Enrollment, course description, exams.
1905-06. Enrollment, paper assignments, exams.
1906-07. Enrollment, paper topics, exams.

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Course Enrollment

Economics 21. Asst. Professor Wyman, assisted by Messrs. Field and Otis. — Principles of Law governing Industrial Relations and Commercial Law.

Total 93: 3 Graduates, 56 Seniors, 21 Juniors, 10 Sophomores, 3 Others.

Source: Harvard University. Report of the President of Harvard College, 1907-1908, p. 67.

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ECONOMICS 21
Mid-year Examination, 1907-08

(First give your answers clearly, then give your reasons briefly.)

  1. (a) White buys 10 gross of Mellin’s Food from the proprietors and pastes over the label on each bottle a large label reading “White’s Food—Better than Mellin’s—Higher in Price—But Double in Nutriment—White Mfgr.” Can Mellin stop White from doing this? (b) Could Mellin stop White from doing this if he could prove that White’s statements were false?
  2. (a) Ely buys prints of the Passaic works and with the undisclosed intention of offering them for sale later at 1 cent per yard less than the usual retail price, 8 cents. Can this be stopped; (b) Could it be if Ely had agreed not to sell them at less than the usual price, 8 cents, when he bought them?
  3. (a) The foreman of a street railway threatens to discharge employees who trade at a certain grocery. Can the grocer sue him? (b) Suppose the foreman were a partner in a rival grocery, would he have been liable?
  4. (a) A suburban street railway agrees with a city street railway that the first shall not extend its lines into the city and the second shall not extend its lines into the country. Can the city line be stopped by it from building into the country? (b) After it has done so, can it stop the country line from building into the city?
  5. (a) A combination of oil refiners agree to lower prices wherever competition appears, the one that loses money thereby to be made whole by the others pro rata. An outsider who is ruined by this policy sues a member of the association — what result? (b) The member of the association who lost money in the process sues the other members for contribution — what result?
  6. (a) A labor union in a building trade strikes in sympathy with a teamster’s union. Can it boycott butchers who sell to nonunion men who remain at work on the building? (b) Can it put a single man on the street corner nearest the work to persuade men from taking the places of the union men?
  7. (a) A & Co. is a partnership composed of A, B, and C; the fact that C is a partner being unknown to the public. The firm buys goods of X, who later learns of the position of C and sues him to the whole price — what result? (b) Suppose C was not a partner but had told Y that he was and X had learned of this later, could X sue C now?
  8. (a) A ownes 99% of the stock the B railroad company. X claims that he shipped some goods by this railroad which were lost in transit; the only evidence X has is an admission by A that the company is liable. What chance has X against the corporation? (b) Suppose A had promised to pay X $1000 in settlement, what chance would X then have against the corporation?
  9. (a) A corporation is formed by X, Y, and Z with a capital stock of $30,000, each taking $10,000, X paying $10,000 cash for his, Y $7,500, and Z $2,500. The corporation later sells $30,000 debenture bonds to L, who pledges them to M for a loan of $20,000. Later the corporation fails after a disasterous season having left goods worth $14,000. How does M come out? (b) How does Z come out?
  10. A is employing X as his salesman by the calendar year. In the middle of the year, B induces X by offer of a higher salary to quit and enter his employ at once. Can A sue B for damages? (b) Can X sue B for his salary when it comes due?

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 8, Bound Volume: Examination Papers, Mid-Years 1907-08.

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ECONOMICS 21
Year-end Examination, 1907-08

First give your answers briefly; then give your reasons concisely.

  1. A, director in a steamship company, who owns 25% of its stock, buys two steamboats for $100,000 each. He offers them to his company for $130,000 each. The directors vote to purchase one, A’s vote not being necessary to carry it, and vote to leave the question of the purchase of the other to the stockholders’ meeting. The stockholders vote to purchase the other, A’s vote being necessary to pass it. A few years later a hostile management gets control, and asks counsel what the rights of the company against A are. What should he answer?
  2. A & Co. join a combination of beef packers who agree not to bid against one another in the cattle market, but arrange distribution among themselves in advance. (1) A & Co. on one occasion do bid against another member contrary to a previous deal. Can they be sued? (2) The cattle raiser refuses to deliver the cattle. Can they sue him? (3) They sell dressed beef to a butcher, delivering part. Can he refuse to pay? (4) They refuse to deliver the remainder. Can the butcher sue them?
  3. The N.Y., N.H. & H.R.R., operating in Conn., R.I., and Mass., acquires say 66 2/3% interest in the stocks of various trolley lines operating in the same states. It also acquires say 33 1/3% interest in the stock of the B. & M.R.R. operating in Mass., N.H., Vt., and Me. Is all this a violation of the Federal Anti-Trust Law? Take one side or the other of the question.
  4. A National Steel Company (1) buys 40% of the steel plants in the United States outright, (2) buys the controlling interest in the stocks of 30% more, (3) makes agreements with 20% more for division of business, (4) refuses to deal with customers who deal with the others. What danger is it in supposing there is no anti-trust statute?
  5. A lease for twenty years is made by one railroad corporation to another. The lease is ultra vires on the part of both corporations. What rights or remedies has either corporation against the other in case of a repudiation of the lease by either at the end of five years, rent having been paid for only four years?
  6. Can a street railway corporation resist as unconstitutional legislation which so reduces fares as to leave it such gross receipts as, after providing for operation and repair, maintenance and re-placement, will leave only an average of 2% upon the securities representing the cost of the enterprise and nothing for depreciation or sinking fund, surplus account or amortization of franchise?
  7. A railroad company buys coal of various operators along its route which it transports to market and sells there. An independent operator shows that at times of press of business the railroad uses part of its cars in its own coal shipments; to which the railroad company replies that it gives him his proportion of cars. This operator also shows that the railroad will buy coal at $3.00 per ton, transport it to market and sell it at $3.75, while he shipping from the same station has to pay the published rate of $1.25 per ton; to which the railroad company replies by saying that they make themselves a trainload rate of 75 cents per ton which they are willing to give him. Must he be content with these answers?
  8. A railroad line having become blocked by an accident six trains were stopped at the city of T, in the following order: (1) a passenger train, (2) a circus train, (3) a train of coal cars, (4) a refrigerator train filled with dressed beef, (5) a trainload of peaches in closed cars, (6) a trainload of lumber on flat ears. In what order should these trains be despatched?
  9. Can a gas company make special rates (1) to its directors, or (2) to hotelkeepers, or (3) to induce a storekeeper to give up the use of electricity, or (4) to customers who buy their fixtures of its contract department?
  10. Can a street railway eject a passenger who (1) has been convicted for picking pockets, or (2) has refused to pay fare the day before, or (3) has a wrong transfer which was given him carelessly by a former conductor, or (4) tenders a ten dollar bill which the conductor cannot change?

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 8, Bound vol. Examination Papers 1908-09 (HUC 7000.25), pp. 44-46.

Image Source: Harvard Law School ca. 1901 from the Detroit Publishing Company photograph collection (Library of Congress).