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Exam Questions Harvard

Harvard. Final Examination for Paul Sweezy’s Economics of Socialism, 1940

During my recent archival visit to Harvard, I was able to copy a magnificent trove of final examinations in economics (up through 1949…there is much more going forward, but I had to move on). Now I begin the curatorial work of pairing some of those examinations to course materials I have posted earlier and where the exam questions were missing.

Today I am adding a transcription of Paul Sweezy’s final examination for his 1939-40, second semester course “Economics of Socialism”.

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1939-40

HARVARD UNIVERSITY
ECONOMICS 11b2

Part I
(Reading Period—One Hour)

  1. Write a critical appraisal of EITHER Pigou’s Socialism versus Capitalism OR Lange’s On the Economic Theory of Socialism.

Part II
(Answer all three—One Hour and a Half)

  1. Explain the Marxian theory of value and surplus value. What is your own opinion of its usefulness?
  2. Discuss briefly each of the following: (a) fetishism of commodities; (b) industrial reserve army; (c) law of the falling tendency of the rate of profit.
  3. “It has been shown time and again that an empire, so far from being a source of riches to the mother country, is a distinct economic liability. In view of this, it is difficult to see how any one can continue to uphold the Marx-Lenin theory of imperialism.” Do you agree? Why or why not?

 

Part III
(One Half Hour)

  1. Discuss EITHER (a) OR (b)

(a) The meaning and significance of costs in a socialist economy
(b) The distribution of income in a socialist economy

Final. 1940.

 

Source: Harvard University Archives. Harvard University, Faculty of Arts and Sciences. Papers Printed for Final Examinations, History, History of Religions, … ,Economics, … , Military Science, Naval Science. June, 1940. (HUC 7000.28) Box 5 of 284

Image Source: Harvard Class Album, 1942.

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Courses Curriculum Exam Questions Harvard

Harvard. Economics courses with enrollments and exam questions, 1871-1875

 

In an earlier posting I assembled information for the two or three economics courses regularly offered at Harvard in the mid-1870s. Today’s posting provides information on the economics course offerings during the first half of the 1870s. Except for the academic year 1870-1, all the courses were taught by Charles Dunbar, who only began teaching at Harvard in 1871/72. Below you will find titles of the textbooks assigned for the courses, enrollment figures, and final examination questions pieced together from the Harvard course catalogues, reports of the President of Harvard and a few unpublished exams I have found during my visit to the Harvard archives in February 2017.

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If you find this posting interesting, here is the complete list of “artifacts” from the history of economics I have assembled. You can subscribe to Economics in the Rear-View Mirror below. There is also an opportunity for comment following each posting….

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1870-71

REQUIRED: POLITICAL SCIENCE.
Junior year

Assistant Professor of Philosophy Ellis Peterson, A.M. Roger’s Political Economy. Mr. O. W. Holmes, Jr. — Alden, Constitution of the United States.

One hour a week. 119 students, 3 sections, 1 exercises per week for students, 3 exercises per week for instructor [for political economy]. 2 sections, 1 exercises per week for students, 3 exercises per week for instructor [for constitutional law].

Source: Harvard University Catalogue 1871-72, p. 39;  Annual report of the President of Harvard University for 1870-71, p. 51.

POLITICAL ECONOMY
Final Examination, June 1871
Junior year

I.

1. What is the sense in which the term wealth is used in Political Economy? 2. What was the cause, and also the effect of the belief that wealth was money? 3. In what sense is the term value used by Political Economists? 4. What is the cause of economical value, and under what conditions is land an exception to the rule of value? 5. Distinguish price from value, and show that while there may be a general rise in prices, there cannot be a general rise in values.

II.

1. What are the causes of “demand,” and which of these are relative, and which absolute? 2. On what does the price of commodities depend in the long run? Also, at any particular time? 3. Why is the increase in the price of bread-stuffs greater than the decrease in the supply? 4. Explain the effects of a very high price of bread on the price of meat. 5. Illustrate by the “cotton famine” in England (1826-65), how demand and supply affect prices.

III.

1. Give the origin and the definition of capital. 2. What are the real profits of capital, and what are included in the gross profits? 3. What are the principal causes of the unequal distribution of capital? 4. How are capital and labor affected by governmnet’s contracting a loan for an unproductive purpose? 5. Why are the fluctuations in the rate of disocunt greater than in the rate of interest?

IV.

1. Show that unproductive labor may be indirectly productive? 2. Give the advantages of “Division of Labor.” 3. Analyze wages of labor. 4. (1)If the number of laborers and the amount of capital invested in production be given, what of course must be the average wages of labor? (2)What causes the difference of wages in different employments? (3)What causes fluctuations of wages of a certain labor, and also of a certain laborer? 5. Show how the staple food of a country may affect the rate of wages?

V.

1. Give Malthus’s Theory of Population. 2. Why have the credit banks of M. Delitzsch been successful? 3. What is the first of Adam Smith’s four canons of taxation? 4. Distinguish direct from indirect taxes. 5. Give briefly the arguments for and against direct and also indirect taxation.

Source: Harvard University Archives. Harvard University. Final examinations, 1853-2001. (HUC 7000.28) Box 1 of 284, Folder “Final Examinations, 1870-1871”.

 

ELECTIVE: PHILOSOPHY 4
POLITICAL ECONOMY
Senior year

Nicholas St. John  Green, LL.B. Adam Smith’s Wealth of Nations. — J. S. Mill’s Political Economy.

Three times a week. 99 Seniors, 2 sections, 3 exercises per week for students, 6 exercises per week for instructor.

Source: Harvard University Catalogue 1871-72, p. 41Annual report of the President of Harvard University for 1870-71, p. 52.

PHILOSOPHY IV
POLITICAL ECONOMY
Final Examination, June, 1871

  1. In what respect do the views of Mr. Mill upon co-operation and the division of labor differ from the views of Adam Smith?
  2. On what does the degree of Productiveness of productive Agents depend?
  3. What is the doctrine of Malthus and what is Mr. Mill’s opinion of that doctrine?
  4. What is Communism? St. Simonism? Fourierism?
  5. What does Mr. Mill think concerning property in land?
  6. What is the remedy for low wages?
  7. What are the functions of money, and how and to what extent can credit supply its place?
  8. What are the evils of an inconvertible paper currency?
  9. What are the ordinary functions of government?
  10. What are the limits of the province of government?

Source: Harvard University Archives. Harvard University. Final examinations, 1853-2001. (HUC 7000.28) Box 1 of 284, Folder “Final Examinations, 1870-1871”.

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1871-72

REQUIRED: POLITICAL SCIENCE.
Junior year

Prof. Dunbar. Roger’s Political Economy. — Alden, Constitution of the United States.
One hour a week. 128 students, 3 sections, 1 exercises per week for students, 3 exercises per week for instructor.

[Note: Political Economy and the U.S. Constitution were each a half-year course with Political Economy covered in the first semester and the U.S. Constitution in the second semester.]

Source: Harvard University Catalogue 1872-73, p. 58 Annual report of the President of Harvard University for 1871-72, p. 46.

POLITICAL ECONOMY
Final Examination, February 1872
Junior year

  1. What is the difference between price and value?
  2. What is capital, and whence is it derived?
  3. Is a legal tender note of the United States money? If not, then what is it?
  4. What effect has an excessive issue of paper currency upon prices?
  5. In an estimate of public wealth, what kinds of individual wealth are excluded, and why?
  6. Why is the rate of interest high in a newly settled Western State?
  7. What determines the rate of wages?
  8. What was the theory of Malthus as to the growth of population?
  9. What effect has the introduction of machinery upon the rate of wages?
  10. What is rent, and how does it depend upon the cost of production?
  11. In the trade between nations, how is the transmission of gold and silver for the most part avoided?
  12. If there is a scarcity of some article of which there are several qualities of different prices, will the cheapest or the dearest quality rise most, and why?
  13. What is the difference between direct and indirect taxation, and what are their respective advantages!
  14. Why is a tax on raw materials a bad tax?
  15. How does our national debt differ in form from the English, and what advantage has either form?

Source: Harvard University Catalogue 1872-73, p. 241.

ELECTIVE: POLITICAL ECONOMY
Senior year

Prof. Dunbar. Adam Smith’s Wealth of Nations. — J. S. Mill’s Political Economy.
Three times a week. 75 Seniors, 2 sections, 3 exercises per week for students, 6 exercises per week for instructor.

Source: Harvard University Catalogue 1872-73, p. 61Annual report of the President of Harvard University for 1871-72, p. 48.

POLITICAL ECONOMY
Special Examination, December, 1871

  1. What is probably the most important advantage obtained by the division of labor?
  2. Define wealth.
  3. Define money.
  4. What is the difference between value and price?
  5. What is the real price of an article, and by what is it measured?
  6. What is the natural price?
  7. What is the market price, and what is its relation to the natural
    price?
  8. In a country where gold and silver coin are both used, what effect will a permanent increase in the supply of either metal have upon the currency? What effect upon prices?
  9. Can these effects be avoided or mitigated, and if so, by what expedient?
  10. What is rent, and how does it depend upon the cost of production?
  11. In the trade between nations, how is the transmission of gold and silver for the most part avoided?
  12. If there is a scarcity of some article of which there are several qualities of different prices, will the cheapest or the dearest quality rise most, and why?
  13. What is the difference between direct and indirect taxation, and what are their respective advantages!
  14. Why is a tax on raw materials a bad tax?
  15. How does our national debt differ in form from the English, and what advantage has either form?

Source: Harvard University Catalogue 1872-73, p. 248-9.

POLITICAL ECONOMY
Special Examination, January, 1872

  1. What is the distinction between wealth and capital?
  2. What is the difference between fixed and circulating capitals? and to which does money belong?
  3. When either of the precious metals becomes more abundant, and the remedy of over-valuation and limitation of the right of tender is to be applied, does it make any difference which metal is over-valued, and if so, what difference?
  4. On what basis is the Bank of England established?
  5. How does Smith distinguish between productive laborers and unproductive?
  6. Explain the paradox that “what is annually saved is as regularly consumed as what is annually spent.”
  7. What is the error of Locke and Montesquieu as to the supposed connection between the depreciation of value of gold and silver and the lowering of the rate of interest?
  8. What is Adam Smith’s view as to the point at which the rate of interest should be fixed by law, and what is his mistake?
  9. How can a paper currency be kept at par with gold?
  10. What was the theory of the balance of trade, and in what respect was it fallacious?
  11. Why do manufactures often flourish while a nation is carrying on a foreign war?
  12. What was the theory of the agricultural system, and what was its great error?
  13. State the general objection to any system for the extraordinary encouragement of a particular branch of industry, and such partial or complete answers to that objection as may occur to you.
  14. What is the chronological relation of the several systems of Political Economy?
  15. Consider the following passage from a Report of the Comptroller of the Currency, made in December, 1871:—

“The tenacity with which the Pacific States adhere to a gold currency is quite notable. Whether it is equally praiseworthy is another thing. It is not clear that those States derive any substantial benefit from the course they have pursued, and it is beginning to be manifest that the United States are not at all benefited by it. The substitution of a paper currency in California and the other gold-producing States for their present hard money would probably set free for the use of the government and the whole country some thirty or forty millions of gold, and, at the same time, provide those communities with a more economical, active, and accommodating circulating medium.”

Source: Harvard University Catalogue 1872-73, p. 249-50.

POLITICAL ECONOMY
Final Examination, June, 1872.

  1. How does Mr. Mill distinguish between productive labor and unproductive? and under which head is mental labor (as, e.g., that of a philosopher or inventor) to be placed?
  2. If a nation has to meet extraordinary expenses, as in time of war, is it better to raise the amount by loan, or by taxes within the year! and why?
  3. What is the relation between profits and the cost of labor?
  4. What is the law which determines the value of that class of commodities of which the supply can be indefinitely increased without increase of cost?
  5. Why are both profits and wages high in a new and fertile country?
  6. If a fall in profits takes place, are manufactured articles or agricultural produce most likely to fall in value, and why?
  7. Why does Mr. Mill think a general over-supply of commodities impossible?
  8. Suppose a paper currency to be issued, of which every note represents actual property. Can it be depreciated, and why?
  9. Can two countries exchange products if in one the general cost of production is higher than in the other, and why?
  10. What is the general law determining the values at which a country exchanges its produce with other countries?
  11. What effect is produced upon international trade by an improvement which introduces a new article of export?
  12. What effect is produced upon rent, profits, and wages respectively, by a great improvement in agriculture?
  13. What reasons are there in theory for exempting from income tax so much of income as is saved and invested?
  14. If a tax upon agricultural produce is of long standing, on whom does it finally fall, and why?
  15. Under what circumstances does Mr. Mill think that protecting duties can properly be levied?

Source: Harvard University Catalogue 1872-73, p. 250.

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1872-73

REQUIRED: POLITICAL SCIENCE.
Junior year

Prof. Dunbar. Fawcett’s Political Economy. — Constitution of the United States.
Two hours a week. First half-year. 162 students, 1 lecture, 4 recitations, 2 exercises per week for students, 5 exercises per week for instructor.

Source: Harvard University Catalogue 1873-74, p. 62Annual report of the President of Harvard University for 1872-73, p. 42.

Final Examination, February, 1873
CONSTITUTION AND POLITICAL ECONOMY
Prof. Dunbar

If unable to answer all the questions on this paper, do not fail to answer a part under each class.

A.

  1. What are the essential points in which the Constitution differs from the Confederation?
  2. Who are citizens of the United States?
  3. State the rule by which Representatives are to be apportioned among the States under Amendments XIV., and XV.
  4. What does the Constitution provide as to the issue of paper currency, whether by Congress or by the States, and whence does Congress derive its power to make paper a legal tender?
  5. On what provision did the claim of power by Congress to prohibit slavery in the Territories chiefly rest?
  6. Whence does either House of Congress obtain its power to punish witnesses for refusal to testify before a committee?
  7. State the change which was made in the method of electing president by Amendment XII., adopted in 1804, and the circumstances which led to that change.
  8. State briefly the provisions relating to the veto power.
  9. State the provisions which define the treaty-making power, and the power of appointing to office.
  10. To what does the judicial power of the United States extend, and how is it limited by Amendment XI.?
  11. How does the Constitution define treason and provide for its punishment?
  12. How can the Constitution be amended, and what exception is there to the power of amendment?

B.

  1. How are the permanently different rates of profit in different pursuits in the same country accounted for?
  2. How does credit affect prices?
  3. What is the advantage obtained by the consumer from the warehousing system?
  4. Should permanent incomes derived from invested property be taxed at the same rate as temporary or professional incomes? Give the reason.
  5. On whom does a tax laid on premises occupied for manufacturing purposes fall, and why?

Source: Harvard University Catalogue 1873-74, p. 265.

 

ELECTIVE: POLITICAL ECONOMY.
Senior year

Prof. Dunbar. J. S. Mill’s Political Economy. — McCulloch on Taxation. — Subjects in Banking and Currency.
Three times a week. First half-year. 65 Seniors, 2 sections, 3 exercises per week for students, 6 exercises per week for instructor.

Source: Harvard University Catalogue 1873-74, p. 67Annual report of the President of Harvard University for 1872-73, p. 44.

 

[Final Examination May or June 1873]
Political Economy
Prof. Dunbar

  1. Mill says, “That high wages make high prices is a popular and wide-spread opinion.” To what extent, and why, is that opinion incorrect?
  2. Suppose the recent combinations of English agricultural laborers to be successful in securing higher wages; what would be the effect on the price of food, the profits of farmers, and the rent?
  3. Adam Smith’s theory of the benefit of foreign trade was that it affords an outlet for surplus produce, and enables the country to replace a part of its capital with a profit. What criticism is to be made on this theory?
  4. How does Bastiat apply his theory of value, for the purpose of showing which of two nations will gain the most from an exchange of products?
  5. Explain Mill’s remark that “there are two senses in which a country obtains commodities cheaper by foreign trade: in the sense of value, and in the sense of cost.”
  6. If a country has regular annual payments to be made abroad, as e. g. interest on a public debt, what effect is produced thereby on the imports and exports, and on the terms on which it exchanges products with other countries?
  7. Suppose capital and population are both increasing; what will be the effect on rent, wages, and profits, and why?
  8. What will be the effect, in the case supposed above, if a great improvement is made in cultivation?
  9. Apply the results in Nos. 7 and 8 to the case of a country like the United States, where the land and the agricultural capital are generally owned by the same person.
  10. State the reasons for and against an income tax, the leading exemptions which should be made, and the rule to be observed in taxing incomes from invested property and from business profits respectively.
  11. Under what circumstances will a tax on exports fall upon foreigners?
  12. In what cases will a duty on imports fall upon foreigners?
  13. What answer is made to Adam Smith’s argument that home trade affords more encouragement to productive industry than foreign trade?’
  14. What answer is made to the objection that the system of protection adds the amount of the duty to the price paid by consumers of protected commodities?
  15. It being admitted that revenue must be raised by duties on imports, how does the plan of “a revenue tariff with incidental protection” fail to satisfy either the theory of protection or that of free trade?

Source: Harvard University Catalogue 1873-74, p. 266.

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1873-74

REQUIRED: POLITICAL SCIENCE.
Sophomore and Junior year

[Note: In 1873 the required study of Political Science was transferred from the Junior to the Sophomore Year that implies combining Juniors and Sophomores for the transition year 1873-74.]

Prof. Dunbar and Mr. Howland. Elements of Political Economy. — Constitution of the United States.
Two hours a week. Half-year. 153 students, 3 sections, 2 exercises per week for students, 6 exercises per week for instructor.

Source: Harvard University Catalogue 1873-74, p. 67; Annual report of the President of Harvard University for 1873-74, p. 44.

Final Examination
PRESCRIBED POLITICAL ECONOMY
February 1874

Political Economy

Those who are also to pass in the Constitution may omit questions marked (*).

  1. Define (a) wealth; (b) value; (c) price; (d) capital; (e) money.
  2. What are the qualities which make gold and silver suitable materials for a currency? What are the objections to a double standard of value?
  3. Explain the action of demand and supply upon the prices (a) of raw materials; (b) of manufactured articles.
  4. Show how rents would be affected by suddenly doubling the productiveness of all lands under cultivation. Prove that rent does not enter into the price of agricultural produce.
  5. State and illustrate the causes which produce a difference in the rate of wages in different employments.
  6. Suppose the amount of the (gold) currency of a country to be suddenly doubled, what would be the effect upon (a) values; (b) prices; (c) exports and imports?
  7. Define direct and indirect taxation. What are the objections to an import duty on raw materials? What is the incidence of a tax levied on the rent of land and paid by the tenant?
  8. (*) Define productive and unproductive consumption. If the latter were to cease altogether, what would be the ultimate effect upon production?
  9. (*) Show how the cost of labor is affected, (a) if the efficiency of labor is increased; (b) if the margin of cultivation sinks.
  10. (*) What are the elements of which profits are composed? Why does the rate of profits vary (a) in different employments; (b) in different countries?
  11. (*) Explain the several ways in which credit promotes production. What are the disadvantages of an irredeemable paper currency?
  12. (*) Explain the use of bills of exchange. What is meant by an unfavorable balance of exchange?
  13. (*) Discuss the question, whether temporary and permanent incomes should be taxed alike.

 

Constitution of the United States.
Those who are also to pass in Political Economy may omit questions marked (*).

  1. (*) When and by whom was the Constitution framed, and what were the principal steps leading to its formation and adoption?
  2. Define citizenship.
  3. What changes have the abolition of slavery and the consequent amendments of the Constitution made in the system of representation?
  4. State the method of electing the President, and the difference between the present method and that at first adopted.
  5. (*) By whom are questions settled which affect the validity of elections (a) of representatives, (b) of senators, (c) of President?
  6. (*) What provision does the Constitution make tor the removal, death, resignation, or inability to serve of the President or Vice-President, or for a failure to elect either officer or both?
  7. (*) What powers over the militia are given to Congress or to the President?
  8. What are the provisions of the Constitution affecting the subject of currency?
  9. What are the provisions relating to taxation, and what are direct taxes under the Constitution?
  10. (*) What are the provisions relating to impeachment?
  11. Under what provision did Congress claim and exercise the power of prohibiting slavery in the territories?
  12. What is the extent of the judicial power of the United States, and where is it vested?
  13. What is the provision for amending the Constitution?

Source: Harvard University Catalogue 1874-75, p. 218-19.

 

ELECTIVE: PHILOSOPHY 6.
Political Economy

Prof. Dunbar. Political Economy. J. S. Mill’s Political Economy. — Bagehot’s Lombard Street. — Sumner’s History of American Currency.
Three hours a week. 70 Seniors, 1 Junior.
2 Sections, 3 exercises per week for students, 6 exercises per week for Instructor.

Source: Harvard University Catalogue 1873-74, p. 67Annual report of the President of Harvard University for 1873-74, p. 46.

 

Final Examination
Philosophy 6 (Political Economy)
June 1874

  1. If the recent efforts to promote emigration on a large scale among English agricultural laborers should be successful, what would be the effect on the price of food, the profits of fanners, and rent!
  2. What is the reason for the expectation that both capitalists and laborers will be gainers from co-operation, and that neither will gain at the expense of the other? and how is this expectation to be reconciled with the general doctrine of Ricardo, that “the rate of profits depends on wages, rising as wages fall, and falling as wages rise”?
  3. Is it desirable to collect a surplus revenue for the purpose of paying off a national debt, or should the amount be left “to fructify in the pockets of the people”? Give the reason.
  4. Explain Mill’s doctrine of the tendency of profits to a minimum, the causes which produce that tendency, and the circumstances which counteract it.
  5. State the general law which determines the values at which a country exchanges its produce with foreign countries, and illustrate its application by the example of cloth and linen.
  6. Explain the incidence of taxes on imports, and the arguments that may be drawn thence as to the policy of protecting duties.
  7. Does or does not a protecting duty give additional employment to home labor? Give the reason.
  8. Criticise the following passage from Adam Smith’s “Wealth of Nations,” Book II., chapter iv. : —

“The legal rate of interest, it is to be observed, though it ought to be somewhat above, ought not to be much above the lowest market-rate. [If it were much above] the greater part of the money which was to be lent, would be lent to prodigals and projectors, who alone would be willing to give this high interest. Sober people, who will give for the use of money no more than a part of what they are likely to make by the use of it, would not venture into the competition. . . . Where the legal rate of interest, on the contrary, is fixed but a very little above the lowest market-rate, sober people are universally preferred, as borrowers, to prodigals and projectors. The person who lends money gets nearly as much interest from the former as he dares to take from the latter, and his money is much safer in the hands of the one set of people than in those of the other. A great part of the capital of the country is thus thrown into the hands in which it is most likely to be employed with advantage.”

  1. A respectable newspaper remarks, that “the object of taxation is to make all property bear its equitable share.” Is this a correct statement of the principle which should be followed in adjusting a system of taxation? Why, or why not?
  2. What effect will high internal taxes have upon prices and upon values?
  3. Explain the incidence of taxes laid on the rent of houses or stores, in a city where the value of land is great. Would the result be different if the tax were laid on the assessed value of the premises? Why, or why not?
  4. Give the leading facts and dates in the history of the United States Bank.
  5. Explain fully how the suspension of Peel’s act of 1844 gives relief to the money market in a panic, and what relation it bears to a suspension of specie payment.
  6. The dollar contains 23.22 grains of pure gold. A dollar in silver currency, if of full value, according to this standard should contain about 866.7 grains, but in fact contains only 345.6 grains of pure silver. How does this explain the somewhat tardy disappearance of silver change when our paper currency depreciated, and to what point must the value of the paper rise before silver can come back into general circulation?
  7. State present limits of our paper currency, and discuss the objections to such a currency when, like ours, it is redundant and depreciated, and has a maximum fixed by law.

Source: Harvard University Catalogue 1874-75, p. 223-4.

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1874-75

PRESCRIBED: POLITICAL ECONOMY.
Sophomore year

Prof. Dunbar. Fawcett’s Political Economy for Beginners. — Constitution of the United States (Alden’s Science of Government, omitting the first four and the last three chapters).
Two hours a week. Half-year. 208 students, 4 sections, 2 exercises per week for students, 8 exercises per week for instructor.

Source: Annual report of the President of Harvard University for 1874-75, p. 45.; Annual report of the President of Harvard University for 1874-75, p. 45.

 

Final Examination June, 1875
PRESCRIBED POLITICAL ECONOMY

Political Economy

[Do not change the order of the questions. Those who are to pass in the Constitution may omit questions marked (*).]

  1. (*) If A owns a United States bond, is it wealth? Is it capital?
  2. (*) What is the differene between circulating capital and fixed capital, and how is it that each “in order to fulfil its functions must be consumed?”
  3. (*) What is the difference between value, as the term is used in this discussion, and value in use?
  4. What is the relation between market price and cost of production? Consider this with reference to each of the three classes into which commodities are divided in relation to their value.
  5. (*) How is the value of gold determined?
  6. What circumstances are said to have counteracted the effect of the Australian and Californian gold discoveries? Did these circumstances affect the value of gold in England alone, or in other countries also? How?
  7. If a country uses both gold and silver coin as its legal tender, and silver depreciates, which coin will remain in circulation? Why?
  8. On what does the cost of labor depend? In your answer distinguish between real wages and money wages.
  9. What is the difference between convertible paper currency and inconvertible? Is one more secure against depreciation than the other? Why?
  10. Why does the interest earned on capital in different employments tend to equality at any given time and place?
  11. Explain the incidence of taxes laid on dwelling houses.
  12. Apply the four canons of taxation to the case of a duty on imported goods, and show whether it answers their requirements or not.

Source: Harvard University Archives. Harvard University. Final examinations, 1853-2001. (HUC 7000.28) Box 1 of 284, Folder “Final Examinations, 1874-1875”.

Image Source: Charles Franklin Dunbar from The Harvard Graduates’Magazine, Vol. VIII, No. 32 (June, 1900), Frontspiece.

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Exam Questions Harvard

Harvard. Exam Questions for Young’s Grad Course on Modern Economic Theories, 1921-27

 

While at Harvard between 1920/21 and 1926/27, Allyn Young taught a course to graduate students (Economics 15, Modern Schools of Economic Thought) that was intended to take students on a survey of economics from the mid-19th century up to the beginning of the 20th century. His colleague, Charles Bullock brought graduate students up to Adam Smith/Ricardo in Economics 14. Young, sometimes in a year-long course, but more often in a semester course, covered the subsequent schools of economic thought.

It is interesting to note that Young had no reservations about including German and French quotations in his graduate examinations. 

From Roger Sandilands (“New Evidence on Allyn Young’s Style and Influence as a Teacher” in the volume edited by Robert Leeson,  American Power and Policy, published in 2009 in the Springer Series  Archival Insights into the Evolution of Economics), we have a wonderful collection of archival testimony to Young’s impact in the training of young economists. The examination questions to follow can help us reconstruct what it was he covered in his survey course on economic theories.

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ACADEMIC YEAR 1920-21

From the Course Announcements

[Economics] 15. Modern Schools of Economic Thought

Mon., Wed., at 3.30, and a third hour at the pleasure of the instructor. Professor Young.

Source: Official Register of Harvard University, Vol. XVII, No. 51 (December 20, 1920). Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences, 1920-21 (3rd edition), p. 101.

 

Course Enrollment

Primarily for Graduates:–

[Economics] 15. Professor Young.—Modern Schools of Economic Thought.

7 Graduates, 1 Other:   Total 8.

Source: Harvard University. Reports of the President and the Treasurer of Harvard College 1920-1921, p. 96.

[Final Examination, 1921]
ECONOMICS 15

  1. Classify the writers whose names follow, using two or three groups, and explain your classification: Cournot, Edgeworth, Jevons, Marshall, Pareto, Walras.
  2. What differences, if any, is there between Pareto’s theory of choice, and the type of theory which leads to the concept of marginal utility?
  3. What is there in Fichte’s views that may have influenced (a) the German historical economists? (b) the socialists?
  4. Distinguish and briefly characterize three different types of “solidarism.”
  5. In what ways, if at all, has Comte’s positivism influenced the development of economic science?
  6. In the reading assigned in Merz what seemed to you most significant, and why?
  7. Give a short summary and critical estimate of the economic philosophy of G. Sorel.
  8. What meaning or meanings do you attribute to the following phrases, and why?
    “The economic interpretation of history.” “An economic interpretation of history.” “Economic determinism.”

Source: Harvard University Archives. Harvard University Examination: Papers Set for Final Examinations in History, Church History,…,Economics,…Fine Arts, Music in Harvard College, June 1921. Pages 70-71.(HUC 7000.28, 63 of 284).

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ACADEMIC YEAR 1921-22

From the Course Announcements

151 hf. Modern Schools of Economic Thought

Half-course (first half-year). Mon., Wed., at 3.30, and a third hour at the pleasure of the instructor. Professor Young.

Source: Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences for the Academic Year 1921-22 (3rd edition), p. 110.

Note: Enrollment figures for courses were not provided in the annual Reports of the President and the Treasurer of Harvard College, 1921-1922.

 

[Final Examination, 1922]
ECONOMICS 151

  1. What is the substance of Mill’s reasoning with respect to the use of the “chemical, or experimental method” in the social sciences? The “geometrical, or abstract method”? The “physical, or concrete deductive method”?
  2. What do you conclude with respect to the following findings of Veblen, — and why?
    “The economists of the classical trend have made no serious attempt to depart from the standpoint of taxonomy and make their science a genetic account of the economic life process. As has just been said, much the same is true for the Historical School. The latter have attempted an account of developmental sequence, but they have followed the lines of pre-Darwinian speculations on development rather than lines which modern science would recognize as evolutionary. They have given a narrative survey of phenomena, not a genetic account of an unfolding process. In this work they have, no doubt, achieved results of permanent value; but the results achieved are scarcely to be classed as economic theory.”
  3. Explain the following paragraph from List by giving it background or context. What die List mean by “philosophy”? By “history”?
    “Die politische Oekonomie muss in Beziehung auf den internationalen Handel ihre Lehren aus der Erfahrung schöpfen, ihre Massregeln für die Bedürfnisse der Gegenwart und die eigentümlichen Zustände jeder besonderen Nation berechnen, ohne dabei die Forderungen der Zukunft und der gesamten Menschheit zu verkennen. Sie stützt sich demnach auf Philosophie, Politik und Geschichte.”
    [“Political economy, in matters of international commerce, must draw its lessons from experience; the measures it advises must be appropriate to the wants of our times, to the special condition of each people; it must no, However, disavow the exigencies of the future nor the higher interests of the whole human race. political economy must rest consequently upon Philosophy, Policy, and History.”]
  4. What distinction, if any, do you make between the historical and the genetic methods? What do you take to be the meaning of “historical laws”? Is there any way in which historical knowledge might have importance for economics even if such knowledge should not be reducible to terms of law?
  5. How many and what sort of premises do you deem adequate for the purposes of a theory of value and distribution?
  6. Give, in general terms, an estimate of the nature and extent of the influence of utilitarianism upon economics.
  7. Explain, without unnecessary detail, Pareto’s use of indifference curves and of indices of choice. Is this a successful escape from hedonism?
  8. Give, as concisely as possible, Schmoller’s conclusion with respect to the methods of economic science, as indicated by his Handwörterbuch

Source: Harvard University Archives. Harvard University Examination: Papers Set for Final Examinations in History, Church History,…,Economics,…, Social Ethics, Education in Harvard College, June 1922. (HUC 7000.28, 64 of 284)

Note: translation of the List quote in question 3 from Friderich List, National System of Political Economy (G. A. Matile, translation), Philadelphia: J. B. Lippincott & Co. 1856. page 63.

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ACADEMIC YEAR 1922-23

From the Course Announcements

15 hf. Modern Schools of Economic Thought

Mon., Wed., at 3.30, and a third hour at the pleasure of the instructor. Professor Young.

Source: Official Register of Harvard University, Vol. XIX, No. 45 (September 18, 1922). Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences 1922-23 (2nd edition), p. 110.

 

Course Enrollment

Primarily for Graduates:–

[Economics] 15. Professor Young.—Modern Schools of Economic Thought.

13 Graduates, 1 Senior:   Total 14.

Source: Harvard University. Reports of the President and the Treasurer of Harvard College 1922-1923, p. 92.

 

[Final Examination, 1923]
ECONOMICS 15

PART I

  1. Comment on the following excerpts from the Communist Manifesto:
    “The feudal system of industry now no longer sufficed for the growing wants of the new markets…Modern industry has established the world market for which the discovery of America paved the way….The bourgeoisie cannot exist without constantly revolutionizing the instruments of production….The need of a constantly expanding market for its products chases the bourgeoisie over the whole surface of the globe.”
  2. Discuss the influence of Fichte and Hegel upon the development of economic thought in Germany.
  3. In what measure is it true that modern economic thought rests upon hedonistic psychology? What differences in this respect are there as among different schools or different writers?

 

PART II

Name and classify the different important schools of economic thought (after Adam Smith). What are the distinguishing characteristics of each? Name and comment upon one of the principal adherents of each.

(To occupy about two-thirds of your time.)

Final. 1923.

Source: Harvard University Archives. Harvard University Examination: Papers Set for Final Examinations in History, History of Religions,…,Economics,…, Social Ethics, Anthropology June 1923. (HUC 7000.28, 65 of 284)

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ACADEMIC YEAR 1923-24

From the Course Announcements

151 hf. Modern Schools of Economic Thought

Half-course (first half-year). Tu., Th., at 10, and a third hour at the pleasure of the instructor. Professor Young.

Source: Official Register of Harvard University, Vol. XX, No. 44 (September 17, 1923). Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences for the Academic Year 1923-24 (2nd edition), p. 108.

 

Course Enrollment

Primarily for Graduates:–

151 hf. Professor Young.—Modern Schools of Economic Thought.

11 Graduates, 1 Radcliffe:   Total 12.

Source: Harvard University. Reports of the President and the Treasurer of Harvard College 1923-1924, p. 107.

 

 

[Final Examination, 1924]
ECONOMICS 151

  1. “Es ist theoretisch und praktisch in der Volkswirtschaftslehre von entscheidender Bedeutung, ob man der individualistischen oder universalistischen Auffassung der Gesellschaft huldige.”—Spann.
    [From Othmar Spann’s Die Haupttheorien der Volkswirtschaftslehre auf lehrgeschichtlicher Grunlage (7th edition, 1920, p. 31.) “It is of crucial theoretical and practical importance for economics whether one pays homage to an individualistic or universalistic conception of Society.”]
    Explain and illustrate.
  2. Give a brief characterization of economic romanticism.
  3. What in your opinion, are the outstanding features of the doctrines of (a) Roscher, (b) Knies, and (c) Schmoller, respecting the scope and method of economics?
  4. Discuss Mill’s conclusion that “History does, when judiciously examined, afford empirical laws of society.” Do you agree?
  5. What common element are found in the writings of Bastiat and Carey?
  6. What is “psychological hedonism”? Do you find it in Smith? Mill? The Austrians?
  7. Give a short estimate of the significance of either Sismondi or Rodbertus.
  8. “Si la théorie de la solidarité de M. Bourgeois a un caractère politico-juridique, celle de M. Durkheim se place dans la sphere toute différente de la sociologie et de la morale.”—Gide.
    [“While M. Bourgeois’ theory of solidarity possesses a political-juridical character that of M. Durkheim is located within the completely different realm of sociology and morality.” From Book 5, Chapter 3 “Les Solidaristes” written by Charles Gide in Charles Gide and Charles Rist, Histoire des Doctrines Économiques, 2nd 1913, pp. 700-701.]
    What are the two theories?

Final. 1924.

Source: Harvard University Archives. Faculty of Arts and Sciences. Papers Printed for Final Examinations. History, History of Religions,…,Economics,…, Psychology, Social Ethics June 1924. (HUC 7000.28, 66 of 284)

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ACADEMIC YEAR 1924-25

From the Division’s Course Description

151 hf. Modern Schools of Economic Thought

Half-course (first half-year). Tu., Th., at 10, and a third hour at the pleasure of the instructor. Professor Young.

In this course less attention will be given to specific economic doctrines than to questions of the scope, methods, premises, and goal of economic science, and of its relations to logic and psychology and to the other social sciences. Selections from the writings of the historical economists, the mathematical economists, the socialists, and other critics of the English classical school will be discussed. Special attention will be given to German and French writers, and readings in German and French will be required. Students with especial interests in this field may arrange to continue the course in the second half-year as a research course.

Source: Official Register of Harvard University, Vol. XXI, No. 22 (April 30, 1924). Division of History, Government, and Economics 1924-25, pp. 71-2.

 

Course Enrollment

Primarily for Graduates:–

151 hf. Professor Young.—Modern Schools of Economic Thought.

18 Graduates, 1 Senior, 5 Radcliffe:   Total 24.

Source: Harvard University. Reports of the President and the Treasurer of Harvard College 1924-1925, p. 75.

 

 

[Final Examination, 1925]
ECONOMICS 151

  1. What do you make of Spann’s distinction between individualism and universalism? Why does Spann attach so much importance to it?
  2. What economic writers would you set down as romanticists, and on what grounds?
  3. Knies is generally counted a member of the historical school. Should you so classify him? Give your reasons.
  4. Why are Bastiat and Carey termed optimists?
  5. Did the reading of J. S. Mill’s autobiography increase or decrease the importance you attached to “Benthamism” as an element in his economics? Explain.
  6. What did Mill hold respecting “historical laws”? What was Roscher’s view? Rickert’s?
  7. What were the chief elements in List’s criticism of Smith and his followers?
  8. Veblen says of Schmoller: “His striking and characteristic merits lie in the direction of a post-Darwinian, causal theory of the origin and growth of species in institutions.” Do you agree?

Final. 1925.

Source: Harvard University Archives. Harvard University, Faculty of Arts and Sciences. Papers Printed for Final Examinations. History of Science, History,…,Economics,…, Anthropology, Military Science, June 1925. (HUC 7000.28, 67 of 284)

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ACADEMIC YEAR 1925-26

From the Course Announcements

151 hf. Modern Schools of Economic Thought

Half-course (first half-year). Mon., Wed., Fri. at 4. Professor Young.

Source: Official Register of Harvard University, Vol. XXII, No. 41 (September 21, 1925). Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences 1925-26 (2nd edition), p. 111.

 

 

Course Enrollment

Primarily for Graduates:–

151 hf. Professor Young.—Modern Schools of Economic Thought.

12 Graduates, 1 Senior, 2 Radcliffe:   Total 15.

Source: Harvard University. Reports of the President and the Treasurer of Harvard College 1925-1926, p. 78.

 

[Final Examination, 1925]
ECONOMICS 151

Discuss two questions in each group.

I

  1. “The economists of the classical trend have made no serious attempt to depart from the standpoint of taxonomy and make their science a genetic account of the economic life process.” — Veblen
  2. “The reason for the Austrian failure seems to lie in a faulty conception of human nature….In all the received formulations of economic theory, whether at the hands of English economists or those of the Continent, the human material with which the inquiry is concerned is conceived in hedonistic terms.”—Veblen.
  3. “Pour Smith la spontanéité des institutions économiques et leur caractère bienfaisant sont dans un rapport étroit. Volontiers, au xviiie siècle, on considère comme bon tout ce qui est naturel et spontané….Smith n’a pas échappé à cette association d’idées. En montrant l’origine ‘naturelle’ des institutions économiques, il lui semblait prouver par là meme leur caractère utile et bienfaisant.” —
    [“Smith saw the spontaneity of economic institutions and their beneficial character to be intimately related. In the 18th century one readily considered everything that was natural and spontaneous to be good…Smith did not escape this association of ideas. By demonstrating the ‘natural’ origin of economic institutions, he thought he had thus proved their useful and beneficial character.” From Book 1, Chapter 2 “Adam Smith” written by Charles Rist in Charles Gide and Charles Rist, Histoire des Doctrines Économiques, 2nd ed. 1913, p. 81.]

II

  1. In Roscher’s “Grundriss” of 1843 there are the following notes on the “historical method”: What is uniform in the development of the different peoples put in the form of a law of developent? Work of the historian and of the student of natural history similar. This historical method has, in any case, if it does not altogether go astray, objective truth.” What would Knies say to this?
  2. Summarize J. S. Mill’s views respecting the use of the deductive and inductive methods in the social sciences.
  3. Give either Spann’s view of economic romanticism or your own.

III

  1. What do you take to be the chief significance of either Sismondi or St. Simon?
  2. What are the distinguishing tents of the two types of neo-Marxism distinguished in Gide’s chapter?
  3. Compare marginal utility, final degree of utility, Edgeworth’s view of utility as a function of many variables, and Pareto’s function-index of choice.

Final. 1926.

Source: Harvard University Archives. Harvard University, Faculty of Arts and Sciences. Papers Printed for Final Examinations. History, History of Religions,…,Economics,…, Social Ethics, Military Science, June 1926. (HUC 7000.28, 68 of 284)

 

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ACADEMIC YEAR 1926-27

From the Course Announcements

151 hf. Modern Schools of Economic Thought

Half-course (first half-year). Mon., Wed., Fri. at 4. Professor Young.

Source: Harvard University, Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences 1926-27 (2nd edition), p. 116.

 

Course Enrollment

Primarily for Graduates:–

151 hf. Professor Young.—Modern Schools of Economic Thought.

17 Graduates, 5 Radcliffe:   Total 22.

Source: Harvard University. Reports of the President and the Treasurer of Harvard College 1926-1927, p. 75.

 

[Final Examination, 1927]
ECONOMICS 151

Use the three hours allotted for this examination in writing an essay upon one of the following topics.

  1. Utilitarianism and psychological hedonism, with special reference to their relation to economic theory.
  2. The historical school and institutional economics.
  3. French economic thought in the nineteenth century.
  4. The use of mathematics in economic theory.

Final. 1927.

Source: Harvard University Archives. Harvard University, Faculty of Arts and Sciences. Papers Printed for Final Examinations. History, History of Religions,…,Economics,…, Social Ethics, Military Science, June 1927. (HUC 7000.28, 69 of 284)

 

 

Categories
Economists Exam Questions Suggested Reading Syllabus Williams

Williams College. Joan Robinson’s (last) course reading list, 1982

After a glorious three week archive/library tour that has taken me from the Library of Congress in Washington to the Harvard Archives to the John F. Kennedy Presidential Library to the Johns Hopkins Archives and back to the Library of Congress, I have time before my flight back to Berlin for a post.

Less than a year before her death, Joan Robinson taught at Williams College in the Autumn/Winter of 1982. Her lectures at Williams were attended by a former colleague of mine from the University of Houston, Dr. D. Andrew Austin, now at the Library of Congress. Andrew shared with me the reading list for her lectures “Problems in Economic Analysis” along with a list of questions for a paper/take-home (exam).

Robinson’s chosen readings are taken from her books:

  • Economic Heresies: Some Old-fashioned Questions in Economic Theory. London: Macmillan, 1971.
  • Contributions to Modern Economics. Oxford: Basil Blackwell, 1978.
  • Aspects of Development and Underdevelopment. New York: Cambridge University Press, 1979.
  • Collected Economic Papers (5 vols.). Oxford: Basil Blackwell, 1951-79; reprinted by MIT Press in 1980.
  • What are the Questions? An Other Essays: Further Contributions to Modern Economics. Armonk, N.Y.: M. E. Sharpe, 1981.

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Professor Joan Robinson

PROBLEMS IN ECONOMIC ANALYSIS
[Williams College, 1982]

OUTLINE OF TOPICS AND REFERENCES

  1. Economics: Ideas and Ideology
    “Marx, Marshall, and Keynes” (Contributions to Modern Economics, Ch. 7)
    “Economics Today” (Collected Economic Papers, Vol. 4, p. 122-127)
    “The Second Crisis of Economic Theory” (Collected Papers, 4, Ch. 10)
  2. What are the Questions?
    “What are the Questions?” (Further Contributions, Ch. 1)
    “The Age of Growth” (Further Contributions, Ch. 2)
    “Stagflation” (Further Contributions, Ch. 3)
  3. and 4. Effective Demand and Employment
    “Prices and Money” (Economic Heresies, Ch. 6)
    “Obstacles to Full Employment” (Contributions, Ch. 3)
    “The Rate of Interest” (Contributions, Ch. 5)
  4. Prices
    “The Philosophy of Prices” (Contributions, Ch. 14)
    “Imperfect Competition Revisited” (Contributions, Ch. 15)
    “The Theory of Value Reconsidered” (Contributions, Ch. 16)
    “The Theory of the Firm” (Economic Heresies, Ch. 7)
  5. Capital, Distribution, and Growth
    “The Meaning of Capital” (Contributions, Ch. 11)
    “Marginal Productivity” (Collected Papers, Vol. 4, Ch. 14)
    “Interest and Profit” (Economic Heresies, Ch. 3)
    “Surplus and Accumulation” (Aspects of Development & Underdevelopment, Ch. 2)
  6. International Trade
    “Beggar-My-Neighbour Remedies for Unemployment” (Contributions, Ch. 17)
    “The New Mercantilism” (Contributions, Ch. 18)
    “Trade in Primary Commodities” (Aspects of Development, Ch. 4)
  7. Economic Development
    “The Poverty of Nations” (Collected Papers, Vol. 4, Ch. 11)
    Aspects of Development and Underdevelopment
  8. Capitalism and Socialism
    “Latter-Day Capitalism” (Contributions, Ch. 21)
    “Has Capitalism Changed” (Contributions, Ch. 20)
    “Socialist Affluence” (Contributions, Ch. 22)

 

Econ. 353 Paper/Take Home
Professor Joan Robinson

Do the following three questions:

  1. Experience in the 1980s seems to be fulfilling Kalecki’s prediction of a political trade cycle. Comment.
  2. a) Explain Keynes’ theory of employment.
    b) Keynes failed to make clear whether this theory was intended to apply to a closed or open economy. Does it matter? Why or why not?
  3. What is the meaning of capital as a factor of production?

 

Choose one of the following two questions:

  1. The orthodox doctrines of economics which were dominant in the last quarter of the nineteenth century had a clear message. They supported laisser faire, free trade, the gold standard, and the universally advantageous effects of the pursuit of profit by competitive private enterprise. This was acceptable to the authorities in an expanding and flourishing capitalist world, especially to the authorities in England, which was still felt to be the dominant center and chief beneficiary of the system. Comment.
  2. The so-called Quantity Theory of Money consists in mistaking a symptom for a cause. Comment.

 

 

Source: Copy provided to Economics in the Rear-view Mirror by D. Andrew Austin of the Library of Congress, Washington, D.C.

Image Source: Joan Robinson at Williams College, Fall 1982 in Joan Robinson and the Americans by Marjorie Shephard Turner, p. 112 (ebook price: $9.99). Published by M. E. Sharpe , 1989.

 

 

Categories
Curriculum Exam Questions Harvard Undergraduate

Harvard. Francis Bowen’s Final Exam for Political Economy, 1869

 

 

While collecting old economics examination questions at the Harvard University Archives, I happened to come across a final examination for Political Economy from the pre-Dunbar years. The senior year course during the academic year 1868-69 was taught by Francis Bowen who assigned his own textbook, The Principles of Political Economy applied to the Condition, the Resources, and the Institutions of the American People (2nd edition, 1859). In the following year (1870) Bowen published American Political Economy; including Strictures of the Currency and the Finances since 1861. One probably can presume his lectures were closer to the latter of the two books. 

For this post I have included Bowen’s obituary published by the Harvard Crimson as well as a summary of the Harvard College curriculum in 1868-69 as published in the annual report of the President of Harvard College.

 

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Bowen’s Examination Questions

POLITICAL ECONOMY.

  1. Explain the difference between the laws of England, France, and the United States in respect to the rights of inheritance and bequest of real estate and personal property, showing the economical results of each of the three systems.
  2. What are the Metayer system, the Allotment system, Tenant Right, the Cottier Tenure, Peasant Proprietors, and the advantages and disadvantages of each?
  3. Show the difference between Exchange Value, Market Price, and Cost of Production. What is the law of the Equation of Demand and Supply?
  4. Wherein does Monopoly or a Scarcity Value differ from ordinary Cost of Production? According to Ricardo, is Rent an element in the Cost of Production;–and why.
  5. How is the interchange of commodities between distant countries regulated not by their absolute, but their comparative, Cost of Production? Explain the Equation of International Demand, and show the influence of cost of carriage on International Values.
  6. By what is the Rate of Interest regulated? Does this Rate depend on the Value of Money? How does it affect the price of land?
  7. What are the fundamental rules of Taxation? Distinguish between Direct and Indirect taxation:–what provision in the Constitution of the United States on this subject? How ought this provision to affect the Income Tax?
  8. What effect has the Rate of Taxation on the amount of revenue collected? Ought taxes to be at the same rate on large and small incomes?
  9. When did the National Debts begin, and wherein do they differ from private debts? What is the Funding of a National Debt?
  10. How came both England and the United States to be in debt for a much larger amount than they ever received from their creditors? What are the arguments in favor of paying off a National Debt within the lifetime of the generation that contracted it?

Sen. Ann. June, 1869.

 

Source: Harvard University Archives. Harvard University, Final Examinations 1853-2001. Box 1, Folder “Final examinations, 1868-1869”.

 

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An Obituary for Francis Bowen

Francis Bowen.
Harvard Crimson, January 22, 1890

Late yesterday afternoon it was announced that Professor Francis Bowen had died at his home at one o’clock of heart failure. He was born on September 8, 1811, at Charleston, Mass., and was therefore in his seventy-ninth year. In 1833 he was graduated from the college in the same class with Professor Lovering, Professor Torrey, Dr. M. Wyman, Professor J. Wyman, and the late Dr. George E. Ellis of Boston. During the four years following his graduation he was an instructor here in intellectual philosophy and political economy. In 1843 he succeeded Dr. Palfrey as editor and proprietor of the North American Review which he conducted until 1854. He was appointed professor of history in the college in 1850, but the board of overseers refused to confirm the appointment on account of his unpopular views on politics. Three years later, however, he was unanimously confirmed as Alford professor to succeed Dr. Walker. In this capacity he continued to serve the college until December, 1889, when he resigned the professorship; so that he has been in active service over thirty-six years. He was a prompt and constant attendant at lectures and always interested in his work. Of late years he has done only half-work and is not well-known to many of the undergraduates. But his influence on the graduates has been remarkably strong, many of them remembering him with the greatest affection.

In the early days of the Lowell Institute he was one of the most popular lecturers in the country. In 1848-9 he lectured before the Institute on the application of metaphysical and ethical science to the evidences of religion; in 1850 on political economy; in 1852, on the origin and development of the English and American constitutions; and subsequently on English philosophers from Bacon to Sir William Hamilton. The most of these lectures were subsequently published. He also published an annotated edition of Virgil, Critical Essays on the History and Present Condition of Speculative Philosophy, Principles of Political Economy, a text book on Logic, Sir William Hamilton’s essays on metaphysics, condensed and edited, and not more than five years ago he prepared the report of the U. S. Silver Commission. In 1879 the degree of L. L. D. was conferred upon him by the University, an honor fifty crowning his years of usefulness. The last years of his life have been quiet and uneventful.

 

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Overview of Harvard College Courses of Instruction, 1868-69

APPENDIX.
I.

SUMMARY STATEMENT OF THE COURSE OF INSTRUCTION PURSUED IN THE SEVERAL DEPARTMENTS OF THE UNIVERSITY DURING THE ACADEMIC YEAR 1868-69.

I. ACADEMIC DEPARTMENT.

 

  1. RELIGIOUS INSTRUCTION.

INSTRUCTION in Ethics and in Christian Evidences was given by the Acting President. During the First Term he heard recitations from the Freshman Class, twice a week, in Champlin’s First Principles of Ethics, and Bulfinch’s Evidences of Christianity.

During the Second Term he met the Senior Class twice a week, hearing them recite in Peabody’s Christianity the Religion of Nature, and delivering Lectures on the Christian Scriptures and the Evidences of Christianity. During the entire year the service of Daily Prayers was attended by him; and he supplied the Chapel pulpit on Sunday.

Two hundred and seventy-five students had leave of absence from Cambridge to pass Sunday at home; one hundred and forty-five attended worship in the College Chapel; and one hundred and sixteen attended other churches in Cambridge.

 

  1. PHILOSOPHY.

The means of instruction in this Department are recitations familiarly illustrated at the time by the Professor, lectures occasionally substituted for recitations, and written forensic exercises.

The Department was under the charge of Francis Bowen, A. M., Alford Professor, assisted by William W. Newell, A.B., Instructor in Philosophy. During the First Academic Term the Senior Class recited three times a week in Bowen’s Ethics and Metaphysics, and Bowen’s Political Economy. During a portion of the Second Term the same Class recited twice a week in Bowen’s Ethics and Metaphysics. An elective section of the same class also recited three times a week in Mill’s Examination of Sir W. Hamilton’s Philosophy, Schwegler’s History of Philosophy, Mansel’s Limits of Religious Thought, and Bowen’s Essays. The Junior Class recited twice a week to Mr. Newell in Bowen’s Logic, Reid’s Essays, and Hamilton’s Metaphysics. The Sophomores recited to Mr. Newell twice a week during one term in Stewart’s Philosophy of the Mind.

Forensics were read, in the First Term, once a month by the Seniors, half of the Class attending each fortnight. The Juniors also read Forensics once a month during one term.

 

  1. RHETORIC AND ORATORY.

This Department is under the superintendence of Francis J. Child, Ph. D., Boylston Professor of Rhetoric and Oratory, assisted in the teaching of Elocution by James Jennison, A. M. Instruction was given to elective sections of the three higher classes in the Early English Language and Literature.

Sophomores had two lessons a week, and studied Vernon’s Anglo-Saxon Guide and Morris’s Specimens of Early English.

Juniors had three lessons a week, and studied Vernon’s Anglo-Saxon Guide, Morris’s Specimens, and Morris’s edition of the Prologues and Knightes Tale from Chaucer’s Canterbury Tales.

The Senior section read Thorpe’s Analecta Anglo-Saxoniea and Mätzner’s Altenglische Sprachproben.

One fifth of the Sophomore Class wrote Themes, and attended a critical exercise upon them, each week throughout the year.

The Juniors wrote Themes, and attended a critical exercise upon them, once every three weeks during the First Term.

The Senior Class had four Themes during the Second Term.

The inspection of performances for Commencement and for the other public Exhibitions is committed to this Department.

The foregoing statement relates to the duties of the Professor.

There are separate courses of instruction in Elocution, and in Reading, which are wholly under the care of the Tutor in Elocution.

The Sophomores and Freshmen attended him once every week during the year as required, and he gave instruction to extra sections from all the classes.

He superintended rehearsals of performances for the Public Exhibitions of the year; the final rehearsal for each of which is regularly attended by the Professor.

 

  1. HISTORY.

In this Department instruction was given to the whole Senior Class by Professor Torrey and Professor Gurney; the textbooks used being the Abridgment of Story’s Commentaries on the Constitution, Guizot’s Civilization in Europe, Arnold’s Lectures, and Hallam’s Middle Ages. An elective class read with Professor Torrey May’s Constitutional History and Mill on Representative Government. A special examination was held of students who had offered themselves as candidates for Honors after having pursued an additional course of study.

The Sophomore Class recited to Professor Gurney in “ The Student’s Gibbon ” during the First Term.

The Freshman Class recited to Mr. Lewis, in the Second Term, in Duruy’s “Histoire Grecque.”

 

  1. MODERN LANGUAGES.

This Department is under the superintendence of James R. Lowell, A. M., Smith Professor of the French and Spanish Languages, and Professor of Belles-Lettres. Elbridge J. Cutler, A. B., Assistant Professor, has special charge of the instruction in French and German. Bennett H. Nash, A. M., is instructor in Italian and Spanish. Thomas S. Perry, A. M., is Tutor of Modern Languages. Louis C. Lewis, A. M., was Tutor of Modern Languages during the last year.

French is a required study during the First Term of the Freshman year; and Ancient History is taught from a French textbook during the Second Term of that year. French is an elective study during the Senior year. German is a required study during the Sophomore year; and an elective during the Junior and Senior years. During the last year the Sophomores studied French instead of German, they having failed to study French during their Freshman year, for reasons given in the last Annual Report. Spanish is studied as an extra, i. e. without marks, during the Junior year, and as an elective during the Senior year. Italian is an elective in the Sophomore, Junior, and Senior years, and the students are allowed to study Italian during any one or two of these three years; but no Senior beginning Italian is allowed to receive marks for the same.

The Professor gave a course of lectures to the Seniors during the Second Term.

The Assistant Professor taught elective German to the Seniors in two sections, three times a week throughout the year. Text-books, Otto’s and Weisse’s German Grammars, “Egmont,” “Taugenichts,” “Braune Erica,” Schiller’s “Maria Stuart,” and Goethe’s “Wahrheit und Dichtung.” He also taught elective French to the Seniors in two sections, three times a week. Textbooks, Beaumarchais’s “Barbier de Seville,” La Fontaine’s Fables, Racine’s “Athalie,” “Selections from French Prose-Writers,” and Pylodet’s “ Littérature Française.”

Instruction was given in Italian as follows :—

To a section of the Senior Class, in three recitations a week. This section read portions of Tasso’s “Gerusalemme ” and of Dante’s “Divina Commedia,” upon which the Instructor gave explanatory lectures. The section also handed in written translations from English into Italian, and had exercises in writing Italian from dictation. They had one written examination beside the annual examination.

To a section of the Junior Class, in two recitations a week. The textbooks used were Cuore’s Grammar, Nota’s “La Fiera,” and Dall’ Ongaro’s “La Rosa dell’ Alpi.” They attended one private written examination, practised writing Italian from dictation, and gave in written translations from English into Italian.

To two sections of the Sophomore Class. Each section had two recitations a week in the same text-books as the Juniors. Each section was exercised in writing Italian from dictation. Beside the annual examination at the close of the Second Term, the Sophomores attended three written examinations.

Instruction was given in Spanish as follows : —

To a section of the Senior Class, which attended three recitations a week, and read Moratin’s “El sí de las niñas,” Lope de Vega’s “La Estrella de Sevilla,” and portions of “Don Quijote.” This section wrote Spanish from dictation, and also translations from English into Spanish. They had one private examination in writing, beside the Annual Examination at the close of the Second Term.

To a section of the Junior Class, which recited twice a week, studying Josse’s Grammar and Reader, and portions of Le Sage’s “Gil Blas.”

 

  1. LATIN.

During the last year this Department was under the superintendence of George M. Lane, Ph. D., University Professor of Latin, aided by Mr. James B. Greenough and Mr. Prentiss Cummings, Tutors. The instruction of the Senior and Junior Classes was conducted by Professor Lane, that of the Sophomore Class by Mr. Cummings, and that of the Freshman Class by Mr. Greenough.

Instruction was given to the Freshman Class in Lincoln’s Selections from Livy (two Books), the Odes of Horace, Cicero’s Cato Major, Roman Antiquities, and in writing Latin:

To the Sophomore Class, in Cicero’s Laelius, Cato Major, and Select Epistles; Terence’s Phormio, Eunuchus, and Adelphi; Quintus Curtius, selections from Ovid, Seneca’s Hercules Furens, and in Writing Latin:

To the Junior Class, in Horace’s Satires, Tacitus’s Annals, and Juvenal :

To the Seniors, in Juvenal, Cicero de Deorum Natura, Lucretius, and Plautus, in the regular elective division. Besides this, instruction was given to the candidates for Honors, in Tacitus and in Latin Composition.

 

  1. GREEK.

The Greek Department, in the absence of William W. Goodwin, Ph. D., Eliot Professor of Greek Literature, was under the charge of Evangelinus A. Sophocles, LL.D., University Professor of Ancient, Byzantine, and Modern Greek, and Isaac Flagg, A. M., and William H. Appleton, A.M., Tutors in Greek.

The Freshmen were instructed by Mr. Flagg and Mr. Appleton. They were divided into four sections, and attended four recitations a week during each Term, besides exercises in Greek Composition. The text-books were Xenophon’s Memorabilia, the Odyssey, and Lysias.

The Sophomores were instructed by Mr. Flagg. They recited twice a week, in four sections, and read the Prometheus of Aeschylus, the Birds of Aristophanes, and the Olynthiacs of Demosthenes. The elective section in advanced Greek read also Plato’s Apology and Crito, the Alcestis of Euripides, and half of the First Book of Herodotus. The Class was also instructed in Greek Composition.

An elective section of Juniors read the first three books of Polybius with Professor Sophocles. A section of Juniors read Aeschines, and Demosthenes on the Crown with Mr. Flagg.

An elective section of Seniors read Plato’s Apology and Crito, and the Electra of Sophocles with Mr. Flagg; and another section read the Antigone of Sophocles, the Alcestis of Euripides, and Thucydides with Professor Sophocles.

 

  1. HEBREW.

This Department, vacant the First Term, was filled the Second Term by Rev. Edward J. Young, Hancock Professor of Hebrew and other Oriental Languages, who gives instruction twice a week to such students as desire it.

 

  1. NATURAL HISTORY.

This Department, now wholly elective, was, in the absence of Professor Gray, under the care of Wm. T. Brigham, A.M.

The course was attended by sixty-four Students of the Junior Class; and the instruction was given by recitations in Structural Botany, lectures on Vegetable Physiology and Organography, and practical work in plant-analysis with the microscope, followed by oral and written examinations. Each student was occupied three hours each week in the lecture-room. From the Thanksgiving recess to the end of the First Term the Class attended recitations and lectures on Animal Physiology and Anatomy, under the care of Jeffri9es Wyman, M. D.

 

  1. ANATOMY AND PHYSIOLOGY.

A course of twenty Lectures on the Anatomy and Physiology of Vertebrated Animals was delivered during the First Term, to members of the Senior Class, and to members of the Professional Schools, by Jeffries Wyman, M.D., Hersey Professor of Anatomy. The Lectures were given on Tuesdays and Thursdays, at 12 M. During the second half of the First Term, fifty members of the Junior Glass attended recitations from a text-book on Physiology, on Wednesdays and Fridays, from 10 to 12 A.M.

 

  1. CHEMISTRY AND MINERALOGY.

The instruction in this Department was given by Josiah P. Cooke, A.M., Erving Professor, and George A. Hill, A.B., Tutor in Physics and Chemistry. During the First Term the Sophomore Class studied Cooke’s Chemical Physics, reciting in three divisions twice each week, and passing two private examinations during the Term. In the Second Term the same Class studied “The First Principles of Chemical Philosophy,” passing one private examination, and the usual public examination at the end of the year. They also attended a course of Lectures, one each week, on General Chemistry.

Those of the Junior Class who elected this department attended during the whole year a course of instruction in Practical Chemistry, giving their attendance in the Laboratory six hours each week, in addition to the three regular hours of recitation. The text-books used were Galloway’s Qualitative Chemical Analysis and Cooke’s Chemical Philosophy; but the course is specially designed to train the faculties of observation and to teach the methods of scientific study, and hence the greater part of the instruction is necessarily oral. The course of Lectures on General Chemistry begun in the Second Term of the Sophomore was continued during the First Term of the Junior Year, two each week until the end of the Term.

Those of the Senior Class who elected Chemical Physics received instruction in Crystallography during the First Term (the text-book used being Cooke’s Chemical Physics), and during the Second Term in Blowpipe Analysis and in Mineralogy, the course consisting of Lectures and practical instruction in the laboratory and cabinet. Elderhorst’s Blowpipe Analysis and Dana’s Manual of Mineralogy were used as books of reference.

 

  1. PHYSICS.

During the last academic year instruction in this Department was conducted by George A. Hill, A.B., Tutor in Chemistry and Physics. Joseph Lovering, A.M., Hollis Professor of Mathematics and Natural Philosophy, was absent in Europe through the year, so that the usual courses of Lectures on Physics to the Senior and Junior Classes were not given.

The whole Junior Class recited to Mr. Hill three times a week during the First and Second Terms; and read Herschel’s Outlines of Astronomy and Lardner’s Course of Natural Philosophy [Optics]. This Class was examined at the end of the Second Term in both books.

The Class recited in three Divisions; each Division remaining with the instructor one hour at every exercise; in all nine hours a week.

 

  1. MATHEMATICS.

The instruction in this Department was given by Benjamin Peirce, LL.D., Perkins Professor of Astronomy and Mathematics; James Mills Peirce, A.M., Assistant Professor of Mathematics; Edwin P. Seaver, A.M., Tutor; and George V. Leverett, A.B., Instructor.
The Freshman Class recited, throughout the year, in four sections three times in the week, and in two sections, once in the week, from the following text-books: Peirce’s Plane and Solid Geometry, and Peirce’s Algebra. The Freshmen were also instructed in Plane Trigonometry.
The study of Mathematics was elective during the Sophomore, Junior, and Senior years.
In the Sophomore year the instruction in Pure and Applied Mathematics was arranged in four courses of two lessons a week each, and Students were allowed to elect one or more of these courses. The subjects taught were Analytic Geometry (Puckle’s Conic Sections, and lectures on the Elements of Analytic Geometry of Three Dimensions), the Differential Calculus (lectures and examples), Spherical Trigonometry
(lectures and examples), Elementary Mechanics (Goodwin and Kerr), and the Theory of Sound (Peirce).
Instruction was given to those who elected Mathematics in the Junior and Senior years, by lectures and recitations, on three days in the week, throughout the year, in Differential, Imaginary, Integral, and Residual Calculus, in the Calculus of Quaternions, and in the Mathematical Theory of Mechanics and Astronomy.
Applied Mathematics (Kerr’s Elementary Mechanics) was also an elective study in the Junior year.

[…]

 

COURSE OF INSTRUCTION FOR THE ACADEMICAL YEAR, 1868-69.

[…]

SENIOR CLASS.
FIRST TERM.

  1. Philosophy. Bowen’s Ethics and Metaphysics.—Bowen’s Political Economy.—Forensics.
  2. Modern History. Guizot’s and Arnold’s Lectures.—Story’s Abridged Commentaries on the Constitution.

ELECTIVE AND EXTRA STUDIES.

  1. Philosophy. Mill’s Examination of Hamilton’s Philosophy.—Last 140 pages of Bowen’s Logic.
  2. Mathematics. Peirce’s Analytic Mechanics.
  3. History. May’s Constitutional History.—Mill on Representative Government.
  4. Chemistry. Crystallography and Physics of Crystals.
  5. Greek. The Antigone of Sophocles.—The Alcestis of Euripides.
  6. Latin. Juvenal.—Cicero de Deorum Natura.—Tacitus’s Annals and Latin Exercises, with an extra Division.
  7. German. Goethe’s Egmont.—Schiller’s Wallenstein’s Lager und Maria Stuart.—Exercises in Writing German.
  8. French. Mennechet’s Littérature Française Classique.—La Fontaine’s Fables.—Writing French.
  9. Advanced Spanish. Moratin’s El sí de las niñas.—Lope de Vega’s La Estrella di Sevilla.
  10. Advanced Section. Tasso’s Gerusalemme.
  11. English. Thorpe’s Analecta Anglo-Saxonica.—Mätzner’s Alt-englische Sprachproben.
  12. Modern Literature. Lectures.
  13. Patristic and Modern Greek.
  14. Geology. Lectures.
  15. Anatomy. Lectures.

SECOND TERM.

  1. History. Hallam’s Middle Ages, one volume.
  2. Religious Instruction.
  3. Political Economy. Bowen’s, finished.
  4. Rhetoric. Themes.

 

ELECTIVE AND EXTRA STUDIES.

  1. Philosophy. Schwegler’s History of Philosophy (Selections).—Mansel’s Limits of Religious Thought.—Exercises and Lectures.
  2. Mathematics. Peirce’s Analytic Mechanics.—Lectures on Quaternions.
  3. Greek. Thucydides, First two Books.—Homer’s Iliad, Book IV.
  4. Latin. Lucretius and Plautus (Selections).
  5. History. Constitutional History.—Constitution of the United States, and the Federalist.
  6. Chemistry. Mineralogy and Determination of Minerals.
  7. German. Die Braune Erika.—Goethe’s Hermann and Dorothea.—Faust.—Writing German.
  8. French. Mennechet’s Littérature Française Classique.—Molière’s Misanthrope.—Beaumarchais’s Barbier.—Lessons in French Pronunciation.
  9. Advanced Spanish. Don Quijote.
  10. Advanced Section. Dante’s Divina Commedia.
  11. English. Studies of First Term continued.
  12. Zoölogy. Lectures.
  13. Modern Literature. Lectures.
  14. Patristic and Modern Greek.

[…]

 

The required studies of the Senior Class are History, Philosophy, and Ethics (together five hours a week). The elective studies are Greek, Latin, Mathematics, Physics, Chemical Physics, History, Philosophy, and Modern Languages (French, German, Italian, and Spanish). In each elective department there will be three exercises a week. Each Senior may choose three or two electives (at his pleasure), and receive marks for the same. Special students for honors may be permitted to devote the whole nine hours to two elective departments, under such restrictions as may be prescribed. Marks will be allowed in Modern Languages in the Senior year to advanced students only.

 

 

Source: Harvard University. Annual Reports of the President and Treasurer of Harvard College, 1868-69.

Image Source:  Portrait of Francis Bowen from the Harvard Square Library (Unitarian Universalism). The Harvard Book: Portraits.

 

Categories
Exam Questions Harvard Statistics

Harvard. Undergraduate Introduction to Economic Statistics. Final Exam, 1939

 

The exam questions seen below, even making an allowance for coming from an undergraduate course (nonetheless 13 of the 87 students were graduate students), indicate that the statistical training of economists at Harvard was a fairly low-grade affair even by the late 1930s, only a mechanical manipulation of different measures of central tendency and dispersion with a dash of trend-fitting and seasonal adjustment for good taste.

_____________________________

Course Listing

Economics 21a 1hf. Introduction to Economic Statistics

Half-course (first half-year). Mon., Wed., Fri., at 10. Associate Professor Frickey.

 

Source: Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1938-39. (Second edition). Official Register of Harvard University, Vol. XXXV, No. 42 (September 23, 1938), p. 147.

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Course Enrollment

 

Economics 21a 1hf. Associate Professor Frickey.—Introduction to Economic Statistics

Total 87: 13 Graduates, 23 Seniors, 17 Juniors, 25 Sophomores, 6 Freshmen, 3 Others.

 

Source: Report of the President of Harvard College and Reports of the Departments, 1938-39, p. 98.

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1938-39
HARVARD UNIVERSITY
ECONOMICS 21a1

Part I

(One hour and thirty minutes.)
Answer any THREE questions.

    1. You are faced with the problem of computing an index of physical production of agricultural products for the years 1910 through 1935.
      1. What significant differences would you expect to find between the results of indexes computed as the weighted geometric mean of relatives and as the weighted arithmetic mean of relatives? Which average would you choose, and why?
      2. What difference would you expect to find among indexes computed respectively on the bases 1910, 1926, and 1935? Would you choose one of these three base periods, or some other base period?
      3. What sort of system of weights would you employ? Why?
    2. During a given interval in 1936, the wages paid to individual laborers in two New England cloth mills were recorded. A frequency table of wages paid was drawn up for each mill, and from the frequency tables, the following characteristics were computed.
Mean Wage Median Wage Standard Deviation of Individual Wages
Company A $25 $25 8.367
Company B $25 $16 23.875
    1. Inferring from the above data, describe the general nature of the frequency distribution of wages for each firm, and compare the wage conditions in the two firms.
    2. What “typical average” would you choose for the distribution of Company A? For that of Company B?
  1. The monthly ordinates of trend found by fitting a linear or curvilinear trend line to a time series of price data would be held by some to represent “long-run normal prices”—that is, the values which the price data would have assumed in the absence of short run cyclical disturbances. Others would maintain that these same trend ordinates are merely the outcome of the particular trend—fitting procedures applied by the statisticians, and therefore reflect only his arbitrary definition of what constitutes “trend” and what constitutes “cycle” in the price series. Evaluate the relative merits of these two points of view toward statistical trend lines, and state your own viewpoint.
  2. In an investigation conducted to ascertain the correlation existing between the value of the assets of firms and the amount of their annual net earnings, the following results were among those obtained. For the specialty store field, the line of regression of annual earnings on asset values gave a “standard error of estimate” of $1000. For the service station field, a similar line of regression of annual earnings on asset values showed a “standard error of estimate” of $500.
    Can we conclude from this that the correlation between earnings and assets is twice as great for service stations as for specialty stores? Why or why not? What additional data would you require in order to ascertain the actual correlation in each case and thereby clinch your argument?

 

PART II

(One hour and thirty minutes.)
Answer question 1, and either 2 or 3.

    1. (Approximately one hour.) The following is a segment of a time series for which certain statistical values have already been computed.
1st quarter 2nd quarter 3rd quarter 4th quarter
1924 21 27 34 40
1925 32 36 28 30
1926 35 37 31 35
1927 36 41 35 39

The central ordinate of trend (a), and the annual increment of trend (b), based on annual averages of quarterly data for a longer period, have been found to be as follows: a = 35; b = 4. The center of the trend period for which these quantities were computed falls at the middle of the year 1924.
The median link relatives, showing typical quarter to quarter change for a longer period, have been found to be:

1st q ÷ 4th q = 110
2nd q ÷ 1st q = 105
3rd q ÷ 2nd q = 85
4th q ÷ 3rd q = 112

Given the preceding data, compute for the period 1924 through 1927 the following:

    1. The quarterly ordinates of trend
    2. The relatives of actual items to the trend.
    3. The seasonally adjusted relatives to trend, to the base 100. (This last step will require also the computation of a seasonal index by the Persons method.)
  1. For the following frequency series, compute the quartile deviation, the coefficient of variation, and determine a good empirical mode. (Show your computations, but do not compute any square roots.)
Wages (dollars per week) No. of Men
0—5 22
5—10 29
10—15 18
15—20 12
20—25 9
25—30 5
30—35 3
35—40 2

 

  1. (a) From the data below compute a price index for 1933 on 1932 as a base, using the Fisher formula.
Commodity Unit Price per unit Physical quantity
1932 1933 1932 1933
A bu. $0.50 $0.60 60 50
B lb. $3.00 $3.30 22 20
C bu. $0.30 $0.24 240 200

(b) If the Fisher formula price index for 1934 on 1933 as a base is 110, and for 1935 on 1934 as a base is 90, construct from the index which you have computed and from the results just given an index for the four years 1932-1935 by which each year is related to a common base.

 

Mid-Year. 1939.

 

Source: Duke University, David M. Rubenstein Library. Lloyd Appleton Metzler Papers, Box 9, Folder “Dust Proof File”.

Image Source: Harvard Album 1947.

Categories
Chicago Exam Questions

Chicago. Exams for Introduction to Money and Banking, A. G. Hart, 1932-35

 

 

In an earlier post I provided the course outline and readings for the first money and banking courses taught by Albert Gailord Hart during the depths of the Great Depression. Today’s post provides transcriptions of the final examination questions for the course. Interesting to note that the course final exam was spread over two days in 1934 and 1935.

 

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Course description

[Economics] 230. Introduction to Money and Banking.—The material in the course includes a study of the factors which determine the value of money in the short and in the long run; the problem of index numbers of price levels; and the operation of the commercial banking system and its relation to the price level and general business activity. Prerequisite: Social Science I and II or equivalent.

Source: University of Chicago, Announcements [for 1933-34], Arts, Literature and Science, vol. 33, no. 8 (March 25, 1933), p. 266.

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Econ 230
A. G. Hart

FINAL EXAMINATION, DECEMBER 21, 1932

Answer questions I, II and III.

I. (About 20 minutes).

Suppose a large manufacturing firm wants more capital. It might establish a bank with $1,000,000 capital paid in in cash and $1,000,000 in deposits transferred from other banks. Apart from legal restrictions on the amount a bank may lend to a single borrower, could the manufacturing firm borrow $20,000,000 from the bank (reckoning 10% reserve)? If not, how much could be obtained from such a bank? Explain.

II. Answer all four parts, allowing about ten minutes for each:

a) Explain the difference between a sight draft and a cable draft in foreign exchange. Which includes an interest charge? Why?

b) Suppose demand depositors of the First National Bank of Chicago transferred $1,000,000 from demand to time deposits. What would be the change in the amount of reserve deposits which the First National is required to hold at the Federal Reserve? What would be the change in required reserve brought about by a similar shift of deposits in a state bank, member of the Federal Reserve System, in Cleveland, Ohio?

c) Explain what is meant by open market operations. How do they affect the money market?

d) Define Mr. Hawtrey’s concepts of “consumers’ outlay” and “unspent margin”. How do they figure in Mr. Hawtrey’s theory of the price level?

III. Answer any two parts, allowing about twenty minutes for each:

a) Explain the difference between the price level defined by the Fisher form of the quantity equation and a cost-of-living index for the working class. What might cause these two price levels to behave differently?

b) If counterfeiters succeeded in making perfect reproductions of Federal Reserve Notes and placed $100,000,000 in circulation, how would this differ from 1) an expansion of $100,000,000 in bank loans, 2) an extra $100,000,000 in greenbacks used by the government to pay unemployment relief in the following respects: i) effect on prices; ii) effect on the total volume of production and employment; iii) effect on the direction of production; iv) “forced saving”? Give reasons.

c) If citizens of a country increase their investments abroad, what influence will this have 1) on the price of sight bills on a foreign country; 2) on the balance of trade; 3) on the prices of domestic goods in the first country? Why?

d) What is the basis of distinction between “real” and “monetary” theories of the business cycle? Mention and criticise an example of each type.

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Econ 230
A.G. Hart

Hour Examination, August 3, 1933

 

Answer questions I, II, and III

  1. Bank Statement:

The following items make up the condensed statement of one of the great New York banks for two recent call dates (to nearest $1000):

Item June 30, 1931 June 30, 1933
(000 omitted)
1. Stock of Federal Reserve Bank
2. Undivided Profits
3. U. S. Government securities
4. Other bonds and securities
5. Dividend payable July 1
6. Customers’ acceptance liability
7. Capital
8. Acceptances
9. Real estate
10. Reserve for contingencies
11. Deposits
12. Cash and due from banks
13. Surplus
14. Other assets
15. Other liabilities
16. Loans and discounts
17. Total resources
18. Total liabilities
$8,880
25,581
281,786
174,500
7,400
169,255
148,000
174,252
35,036
14,720
1,897,544
531,352
148,000
3,030
80,828
1,295,486
2,499,325
2,499,325
$8,160
8,705
207,955
246,845
2,590
91,443
148,000
93,354
32,069
3,334
1,408,337
351,374
50,000
15,466
18,747
779,755
1,733,067
1,733,067

A. Reconstruct the statement, separating assets from liabilities.
B. Which of the above items represent the investment of stockholders in the back? Do you think the total of these items bears a normal relation to total resources?
C. Does any of the above items show the bank’s primary reserves? If not, try to estimate their amount. Compare primary reserves with deposits. Do you think the proportion shows the bank to be healthy? Explain.
D. Which of the asset items consist wholly or in part of “secondary reserves”?
E. What items would replace #12 in a more detailed statement?
F. Suggest explanations for the decrease between 1931 and 1933 in items 11, 8, 5, 16, and 13.

 

  1. Federal Reserve:

A. What is the “open market committee”?
B. List three of the more important powers of the Federal Reserve Board over the Federal Reserve Banks.
C. Name five cities having Federal Reserve Banks

 

  1. Quantity Theory

It is the announced policy of the Roosevelt administration to spend about $3,000,000,000 within the next year on public works, raising the funds by borrowing from the Federal Reserve and member banks. In what sense is this “inflation”? Assuming no inflationary or deflationary actio from other sources, how much might this program be expected to raise the “general price level” in the long run? Explain.

 

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FINAL EXAMINATION
Economics 230
Summer Quarter 1933

(follow link above)

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FINAL EXAMINATION
Economics 230
Winter Quarter 1933

I
(About 30 minutes)

The following was the consolidated statement of the twelve Federal Reserve Banks for March 1, 1933 in abbreviated form:

Item March 1 Feb. 21, 1933
(000 omitted)
1. Total gold reserves
2. Total Reserves
3. Discounts secured by U.S. obligations
4. Other discounts
5. Total bills discounted
6. U. S. securities
7. Total bills bought
8. Federal Reserve notes in circulation
9. Total deposits
10. Reserve ratio against notes and deposits
$2,892,083
3,066,537
418,921
293,470
712,391
1,835,963
383,666
3,579,522
2,157,190
53.5%
$3,118,393
3,304,644
105,102
222,036
327,138
1,834,233
179,576
3,000,248
2,399,398
61.2%

Answer parts a) to d): a) Which of the above are asset items in which liabilities? What items are missing which would appear the complete statement? b) What makes up the difference between items 1 and 2 from March 1? c) Explain the changes in items 1, 5, 6, 7, 8 and 9 in terms of the conditions of the week covered, paying special attention to interrelations of the changes. d) Calculate free gold under the regular rules and under the Glass-Steagall Act (assuming notes issued not in circulation to be $100,000,000), as of March 1.

 

II

Answer all three parts, allowing about ten minutes for each:

a) Explain what is meant by open-market operations by the Federal Reserve Banks. Under whose authority are they conducted? What is their effect on the money market?

b) Explain the method of calculating “net demand deposits” for working out the required reserves of member banks.

c) Write out the Fisher equation of exchange and define the meaning of the symbols used. (Criticism or discussion not called for.)

 

III

Answer any two parts, allowing about twenty minutes for each:

a) Distinguish between “real” and “Monetary” theories of the business cycle. Mention and criticise an example of each.

b) Discuss: “The very process of financing increased production puts into circulation enough money to buy the added output, so that supply and demand must be equal. After all… trade is but a perfected system of barter.”

c) “In these days of serious world-wide maladjustments the importance of economic stability is likely to be over – rather than underrated.” Discuss.

d) Indicate the advantages and shortcomings of the quantity theory of money 1) for short-run analysis, 2) for predicting long-period tendencies.

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ECONOMICS 230
Final Examination, Mch. 22-23 [1934]

Part I – answer questions 1 – 3 and either 4 or 5

  1. If the Federal Reserve wishes to diminish the reserves of the member banks, what can it do? Can anything happen to make these measures ineffective? If so, what?
  2. What is a letter of credit?
  3. What differences in meaning are there between the price level of Keynes’s first equation and that of Fisher’s equation?
  4. M. (100%) Nichols, of the First National Bank of Englewood, recently wrote to the R.F.C.: “when I believe that our merchants can safely and profitably borrow money, with a reasonable assurance of paying it back, I shall tell them so… I refuse to take this responsibility as I do not believe this is a safe time either to borrow or to loan.” Discuss this in relation to the government’s claim that refusal to expand bank loans is retarded recovery.
  5. It has been said that the effects of inflation are primarily on the distribution of wealth, those of deflation on its production. Discuss.

 

Part II – Answer questions 6-8 and either 9 or 10.

  1. Distinguish between F. R. Notes and F. R. Bank notes.
  2. Explain the meaning of “velocity of circulation”.
  3. Would the following tend to raise or lower the prices of foreign-currency units in dollars: a) increased demand for sugar in this country? b) an increase in our tariff duties on English textiles? c) resumption of payments to our government on account of war debts? d) the rise of wage rates in this country brought about by NRA? Explain briefly in each case.
  4. Do you think that the Roosevelt monetary policy will succeed in raising prices appreciably? Why and How? If you do, what do you think will be its effect on the following price relationships. Salaries vs. cost-of-living? Wages vs. cost-of-living? Farm prices for crops vs. prices of things farmers buy? Explain.
  5. Which of the following groups have most to gain by inflation and which least: policeman? Owners of mortgaged down-town real estate? Exporters? Railway bondholders? Railway stockholders? Wage earners? Unemployed steelworkers? Explain in each case, and if you cannot tell whether the group would gain, explain why you cannot.

_______________________________

Econ. 230
A. G. Hart

Final Examination
December 19-20, 1935

  1. Gold imports into the United States in the 22 months ending October 31, 1935 totaled nearly $2473 million (new valuation), increasing our monetary gold stocks by about one third. a) Suggest explanations for the movement. b) Estimate the effects of the inflow of total reserves of member banks; on their excess reserves. Explain your reasoning. c) Estimate the effects of the inflow on total reserves and on excess reserves of the Federal Reserve Banks, and explain.
  2. If American monetary policy brings about a substantial rise of prices within the next five years, how will this affect the interests of a) a widow with an annuity from a life insurance company; b) a railway engineer; c) a university professor; d) an unemployed carpenter; e) a postal clerk; f) an automobile mechanic. Give grounds for your answers.

 

 

  1. State and criticise the views of Gregory on the merits of the American devaluation from an international standpoint.
  2. Describes a means by which the American monetary authorities could act to stabilise: a) the dollar price of a foreign gold-standard currency, b) the volume of checking deposits in the hands of the public, c) an index number of wholesale prices. In each case what reasons are there for doubting the effectiveness of these means?
  3. (Optional – write only if time permits.) As among the three sorts of “stabilisation” mentioned, which would you prefer to see made the guide of monetary policy, and why?

 

Source: Columbia University Archives. Albert Gaylord Hart Papers. Box 61, Folder “Assignments and Other Memoranda for Reserve in Harper Reading Room Econ 230, A. G. Hart”.

Image source: Ibid.

 

 

Categories
Exam Questions Fields Harvard Statistics Suggested Reading

Harvard. General Exam Preparation for Statistics, 1947

 

 

______________________

April 1, 1947

SUGGESTIONS FOR PREPARATION IN THE GENERAL FIELD OF STATISTICS

Work in the two courses, Economics 121a and 121b, is in almost all cases an essential core of the preparation of the field of Statistics for General Examinations (requirements for the Special Field differ substantially), but such work does not constitute sufficient preparation. A considerable volume of additional reading is recommended, and Sections II and III below give certain pertinent suggestions; but candidates who wish to make other selections should submit their choices for the approval of one of the undersigned.

I. Foundation Theory

For statistical theory as such, a thorough knowledge of the work—in the classroom and in reading assignments—of Economics 121a is ordinarily adequate preparation. The main reading assignments in that course are:

C. U. Yule and M. G. Kendall—An Introduction to the Theory of Statistics, 1937 edition, entire book beginning with Chapter 6;

D. C. Jones—A First Course in Statistics, specified chapters on curve fitting and sampling;

W. P. Elderton-Frequency Curves and Correlation, specified portions on curve fitting and correlation;

but candidates should be prepared as well in the other assigned readings.

II. and III. Statistics Applied to Economics

Suggestions under heads II and III aim at giving the candidate an intensive acquaintance with (a) the applied statistical work of three specific authors, and (b) the applied statistical work in some particular economic area. Candidates who, in undertaking to meet these two requirements, select books or memoirs customarily treated in Economics 121b should understand that a more complete and intensive knowledge of such items is expected in the General Field than in 121b. In respect to each of these readings the candidate will be expected to know the contributions to statistical methodology in that item of reading, to have a critical appraisal of the statistical procedure used, and to know the importance and validity of the results for economic analysis.

The items listed below are merely suggestions; candidates may offer substitute readings for the approval of one of the undersigned.

II. Authors in Applied Statistics

In this section, no elementary statistics textbook is acceptable, nor will the classic Bulletin No. 284, U.S.B.L.S., by W. C. Mitchell, be accepted. Knowledge of these is taken for granted. For any author selected below, some book or extensive memoir presenting an application of statistics to economic problems is intended; but in no case should any item here be identical with one chosen under III below. Each candidate should select three authors.

Suggested Examples:

Sir Wm. Beveridge, Wheat Prices and Rainfall in Western Europe

A. L. Bowley, Wages and income in the United Kingdom since 1860

A.F. Burns, Production Trends

A. F. Burns and Wesley C. Mitchell, Measuring Business Cycles – (certain portions may be omitted; see the note at the end of this memorandum.)

W. L. Crum, Corporate Size and Earning Power

*E. E. Day, The Physical Volume of Production

Paul Douglas, Real Wages in the United States

Ralph Epstein, Industrial Profits

Mordecai Ezekiel, Methods of Correlation Analysis

Solomon Fabricant, Output of Manufacturing Industries

Solomon Fabricant, Employment in Manufacturing, 1899 -1939

*Irving Fisher, Making of Index Numbers

Edwin Frickey, Economic Fluctuations in the United States

Ralph G. Hurlin and W. A. Berridge, Employment Statistics for the United States

Simon Kuznets, Commodity Flow and Capital Formation

Simon Kuznets, National Income and its Composition (Vol. 1)

Simon Kuznets, Secular Movements

Wassily Leontief, Quantitative Input and Output Relations

F. C. Mills, Behavior of Prices

*W. C. Mitchell, Business Cycles—1927 ed. (statistical portions)

*W. M. Persons, Construction of Index Numbers (pp. 1-44)

*W. M. Persons, Indices of General Business Condition

Henry Schultz, The Theory and Measurement of Demand (statistical portions)

*Henry Schultz, Statistical Laws of Demand and Supply (the first part, on demand)

J. A. Schumpeter, Business Cycles, Vol. 1 (with emphasis on statistical portions)

Carl Snyder, Business Cycles and Business Measurements

Woodlief Thomas, et al., The Federal Reserve Index of Industrial Production, Federal Reserve Bulletin for August 1940, pp. 753-771; September 1940, pp. 912-924; July 1942, pp. 642-644; October 1943, pp. 940-984.

III. Statistical Studies in a Single Economic Field

The object of this section is to guide the candidate in studying statistical investigations of more than one author in some one economic subject. The candidate should choose one such subject, and have and intensive knowledge of the statistical work in that subject, or two or more leading authors. Comparisons among such authors will constitute a part of the requirement.

Suggested Examples

Index Numbers: *Fisher, Making of Index Numbers; * Persons, Construction of Index Numbers; (also, look briefly at Frickey, The Theory of Index-Number Bias, Review of Economic Statistics, November 1937.)

Secular Growth of Output: Burns, Production Trends; Fabricant, Output of Manufacturing Industries

Cycles, I: *Mitchell, Business Cycles (1927); Burns and Mitchell, Measuring Business Cycles (certain portion of this book may be omitted; see the note at end of this memorandum).

Cycles, II: *Persons, Indices of Business Conditions; Schumpeter, Business Cycles, Vol. 1

Multiple Correlation: Ezekiel, Methods of Correlation Analysis; Black et al., The Short-Cut Graphic Method of Multiple Correlations, Quarterly Journal of Economics, November 1937, pp. 66-112, and February 1940, pp. 318-364.

Employment: Fabricant, Employment in Manufacturing, 1899 – 1939; Hurlin and Berridge, Employment Statistics for the United States

Profits: Epstein, Industrial Profits; Crum, Corporate Size and Earning Power

Wages: Brissenden, Earnings of Factory Workers; Douglas, Real Wages in the United States

Prices: Mills, Behavior of Prices; Warren and Pearson, Prices (or Gold and Prices).

Distribution of Income: Brookings Report, America’s Capacity to Consume; Lough, High-Level Consumption

N.B. OF THE FIVE BOOKS CHOSEN UNDER II AND III, NOT MORE THAN FOUR MAY BE BOOKS WHICH ARE MARKED WITH A STAR (*) IN THE LISTS ABOVE.

Each candidate should submit his program, well in advance, for the approval of one of the undersigned:

L. W. Crum
Edwin Frickey

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 4, Folder “Economics, 1946-47”.

Image Source: Crum and Frickey in Harvard Class Album, 1942 and 1950.

 

 

 

Categories
Chicago Courses Exam Questions Suggested Reading Syllabus

Chicago. International Trade and Finance. Jacob Viner, 1933.

 

The first four pages of written notes taken by Milton Friedman for Jacob Viner’s course, International Trade and Finance, provide something of a course syllabus and list of suggested reading assignments. The notes are undated but in his civil service job applications, Friedman provided a list of courses by university, semester or quarter and course instructor. Milton Friedman took Jacob Viner’s course during the Winter quarter (January to mid-March) of 1933. Generally Friedman’s handwriting is easy to read, knowing the context, though some checking of authors’ names was required. I provide one sample from a particulary difficult five or six lines and welcome any alternative readings. Otherwise I am extremely confident in my transcription.

Elsewhere in his files, Milton Friedman had what appears to be a later photocopy of an exam for this course. The folder is labelled “Biographical: Class Exams circa 1932-1938”. “University of Chicago” and “Milton Friedman” are handwritten on the photocopy of the original typed copy of the exam.

Don Patinkin took the same course that was still taught by Viner in 1944: the course outline, readings and some exam questions are available in an earlier post.

_____________________________

International Economic Relations: Course Description

[Economics] 370. International Trade and Finance.—This course deals with the theory of international values, the mechanism of adjustment of international balances, foreign-exchange theory, the international aspects of monetary and banking theory, and tariff theory. Prerequisite: Economics 301 or its equivalent. Winter, Viner.

 

Source: University of Chicago. Announcements. Arts, Literature and Science, vol. XXXII, no. 12 (for the sessions of 1932-33), p. 361.

_____________________________

From Milton Friedman’s Course Notes

✓Mun England’s Treasure Ch. 2, 3, 4, 5, 20, 21

✓Hume Essays Moral & Political. Vol I—Essays (of Commerce/of the Balance of Trade)

✓Viner   Early English Theories. J.P.E. June & Aug, 1930. All of June article. pp. 418-431, 442-448 in Aug. article.

 

Bullionist Controversy

✓Silbering, Fin[ancial] & Mon[etary] Policy [of Great Britain During the Napoleonic Wars] Qu. Jour of Ec 1924

✓Angell ch III & Appendix A

✓Ricardo High Price of Bullion in works also in Gonner. Ricardo’s Essays

✓Viner Canada’s Balance, pp. 191-20[last digit smeared, might be “4”]

J.P.E. Oct 1926 pp. 600-608

✓J.S. Mill Principles Bk III Ch XXIV

✓Walker Money. Ch XIX & XX

Mill Principles Book III, Ch XIX, XX, XXI, XXII

Taussig, International Trade. Ch XVII, XVIII

 

1) Canada’s Balance pp. 202-212, 145-190

Angell pp. 170-174, 505-510

2) Ohlin. Is the Young Plan Feasible? Index Feb 1930

3) Angell-Q.J.E. May 1928

Rogers in Recent Ec. Changes Vol. II, Ch. II
Taussig, Int. Trade 325-332

4) Moulton on War Debts in Schanz Festgabe [Festgabe für Georg von Schanz zum 75 Geburtstag. Tübingen: J. C. B. Mohr. 1928. 2 vols. Papers by Beckerath, Lotz, Jèze, Einaudi, Stamp, Moulton, and others.]

____________________

with respect to 1) find answer:

  1. to what factor does Viner assign & to what factor does Angell says Viner assigns the immediate responsibility for the rise in prices. Also to what fact[or] he assigns it.
  2. What role does Viner assign & what role does Angell say Viner assigns & what role does Angell assign to the expansion of Canadian Bank loans.
  3. What is order of priority acc[ording] to Viner & acc[ording] to Ang[ell] of fluctuation in Canada bank demand liabilites & outside reserves.
  4. (cf. th[eory] by Mill or Tau[ssig]) If outside reserves was held as gold in Canada what role in the mechanism would the classical theory assign to them

 

Comparative Costs

Ricardo-Principles ch 7

Viner Welt-Archiv Oct, 1932

____________________

Manoïslesco Theory of Protection [Reviewed by Viner in JPE, Feb. 1932, pp. 121-125]

Grunzel Joseph. Handbuch der internationalen Handelspolitik (probably)]

Cherbuliez [, Antoine] Précis de la Science E., pp. 375-391

Walras “Théorie du Libre Échange. Revue d’Économique Politique XI (1897) pp. 651-664

or ‘Études d’Éc. Pol. Applique, pp. 286-304 [1898 reprint of previous article].

Pareto-Cours

Angell

Taussig. Int. Trade

Weber, Alfred. “Die Standortslehre und die Handelspolitik Archiv für Sozial. XXXII (1911) 667-688
____________________
Choose one & in about 10 days give appraisal thereof.

J.S. Mill Principles Bk III Ch XVII XVIII

Marshall. Money Credit & Commerce Bk III Ch VI, VII, VIII Appendix J[?] pp. 330-342

Terms of Trade

Taussig: Int. Trade see Index under Barter Terms of Trade.

Yntema Ch. 5.

Wilson Capital Imports, Ch 4.

Depreciated Paper

Taussig, Int. Trade 336-408

Graham Exchange Prices & Prod. in Germany. 97-99; 117-149

Cassel Money & Foreign Exchange after 1914, pp. 137-186

Cassel The Treatment of Price Problems. Ec J. Dec 1928

Ohlin International Trade Relations. Index Aug 1930

Bastable. Theory of Int’l Trade Ch 6.

League of Nations. [Financial Committee] Report of Gold Delegation, 1932 [Official no.: C.502.M.243.1932.II.A]

____________________

Read letter in last issue of Economica of a letter on the true something or other.

 

Source: Hoover Institution. Milton Friedman Papers, Box 120, Bound notes (Economics 370/J. Viner/10 a.m. S.S.B. 107).

_____________________________

Final Exam Questions Winter Quarter 1932-33

Economics 370

  1. Write notes on the following:
    1. “Increasing Returns” and the Comparative Cost Doctrine
    2. The “Law of Reciprocal Demand” and the “Equation of International Exchange.”
    3. The possibilities of partial specialization under free trade.
  1.       a.  Discuss the part played by international shifts in money incomes in adjusting balances of payments to international capital movements.
    b.  Explain briefly the part played in the lending country in connection with the same process by bank deposits and by bank loans.
  2. “The principles governing the rate of exchange may be illustrated by the following mechanical example. Represent two countries by two cisterns, and their stock of legal tender money by water, so that the depth of the water in either cistern may be taken to be the general level of prices in the corresponding country. If water cannot pass from either cistern to the other any divergence of depth may be produced at will by adjusting the respective quantities of water in them. This corresponds to the case of countries with independent currencies. If, however, the water can flow through a pipe leading from the base of one cistern to the base of the other, the depths in the two cisterns will always be identical.”
    Hawtrey, Good and Bad Trade, 1913, pp. 109-110.
    Comment briefly.

 

Source: Hoover Institution. Milton Friedman Papers, Box 115, Folder 13. “Biographical: Class Exams circa 1932-1938”.

Categories
Columbia Exam Questions Suggested Reading Syllabus

Columbia. Foundations of Social Economics. J.M. Clark 1937

 

Working with the papers of John Maurice Clark is not for historians who abhor dirt and disorder. Simply imagine going into an attic and finding the papers of your grandparents dumped shelf by shelf, pile by pile, with or without the social contrivance of filing, and now image the dust of decades has penetrated the recesses of box and folder. And yet there is much interesting stuff for the hardy to be found in the rummage of Clark’s career.

Three items are posted today from J. M. Clark’s course on the foundations of social economics: (i) five pages describing a course project for students to think about an economic constitution for a newly discovered, virgin continent that is 1/10 the scale of the United States which would be colonized by 1/10 of the U.S. population but run as an experiment in economics; (ii) an undated handwritten course bibliography; (iii) an undated typed final examination for the course.

Examination questions for one of the two courses taught back-to-back from a few years earlier can be found in Milton Friedman’s papers.

_________________________________

COURSE DESCRIPTIONS

Economics 109—Foundations of social economics. 3 points Winter Session. Professor J. M. Clark.
M. and W. at 2:10. 401 Fayerweather.

The course pays attention to the nature of man, and of joint organizations which act as economic men; the economic ideal, viewed dynamically; the social meaning of wealth; the institution of exchange; the principles of choice, value, and cost; a functional analysis of production; the basic institutions of control; economic guidance; negotiation and bargaining; the factors of production and the laws of return; the problem of waste.

Economics 110—Dynamics of value and distribution. 3 points Spring Session. Professor J. M. Clark.
M. and W. at 2:10. 401 Fayerweather.

The functions of value and price; the dynamics of supply and demand for commodities and factors of production; the institution of competition; social vs. competitive schemes of distribution; value and expenses of production; expenses and ultimate costs of production; cumulative vs. self-limiting changes; the level of prices; economic rhythms.

 

Source: Columbia University Bulletin of Information, Thirty-seventh series, No. 28 (June 26, 1937). History, Economics, Public Law, and Social Science. Courses offered by the Faculty of Political Science for Winter and Spring Sessions 1937-1938, p. 27.

_________________________________

Typed copy of Course Project, Econ 109
Winter Semester 1937

[handwritten note at top of page
“P.P. [per person?] 2-3 Objectives. 4-5 Strategic decisions.”]

Tentative project for Econ. 109.
(May be used as a carry-over in early meetings of 110 this year—Jan.-Feb., 1938)

Specifications for a new economic system.

A new continent, unoccupied and reproducing the area and resources of the U.S. on a one-tenth scale, has been discovered in the Pacific, and recognized as belonging to the U.S. Recognising that our present economic system is unsatisfactory, the Government has decided to use this area as a laboratory experiment in the setting-up of an altered system, starting from scratch with the advantage of hindsight as to the evils of our present system and trying to improve on them. More than one-tenth of our population, including quotas from all walks of life, have signified their willingness to try the experiment and to cooperate loyally in whatever system is selected. We needn’t take Al Capone [Chicago gangster kingpin] if we don’t want him, but we can have Owen Young [founder of RCA, the Young Plan regarding the reduction of German reparations was his namesake], Henry Dennison [important figure in scientific management movements] and others of like complexion if we want them.

This class has been designated as one of a number of groups to draw up and submit proposals, from which a plan for developing the area will ultimately be selected or otherwise made up. There are other groups concerned with religion, education and political government, and there will be interchange between all the groups before their various proposals are knit together. The political-government group is marking time until it finds what kind of a system it will have to devise a government for. There may be other groups set up on health, penology, family and social relations, art and possibly other matters as developments seem to require them.

[Handwritten title insert] First Strategic decision.

            We shall use modern scientific and technical methods of production. In departing from the pattern of the existing system, we are free to go all the way to the most complete communism, or to move in the other direction and try to set up a system more genuinely individualistic (and presumably more competitive) than the present one, if we think the chief trouble is that it is not individualistic enough.

Desirable ends, formulated as standards, so far as possible.

            “Maximum individual welfare”, including physical and mental health, personalities adjusted to social living, well-rounded exercise of faculties and adequate stimulus thereto, liberty of choice, within limits, barring things demonstrably harmful to individual or society but including choice of occupation, particular forms of recreation and consumption, adequate guidance in the exercise of liberty, possible special stimulation to activities regarded by proper and competent bodies as especially valuable.

More goods, for those who need them most, implying much greater equality of distribution that at present, but not neglecting importance of increasing total. Flat equality, or distribution (of all goods) according to need, debatable. What kinds of goods? Not much more food, not very much more clothing, much more adequate housing, more adequate education, much more adequate health service (but our religious board includes a couple of Christian Scientists!) “More goods” calls for stimuli to efficiency of production in all grades, and liberty to try new processes and new goods. Whole question of bureaucratic morale, of differentiated material rewards varying with performance (or in proportion to commercial worth of superior performance?) of comparative, quasi-competitive or completely competitive tests of performance.

Right to opportunity to work.

Relative stability of rate of production.

Adequate supply of capital to ensure progressive efficiency of production, with future product rationally weighted against present privation.

Rational distribution of family income over time, with balanced provision for old age and emergencies. (This may or may not be tied up with the provision of capital funds, as at present).

National defense, to the extent deemed necessary (We shall assume that it does not call for a totalitarian system.) [Handwritten note: “Can we safely assume that in 1947?]

Strategic decisions.

            Scope of consumers’ preference in deciding what goods and services shall be produced. We shall surely let them decide what color wall-paper and furnishings to have, and beyond certain minimum requirements what books to read and what recreations to follow. We may ration some things—if so, what?—but there will be some realm within which we let them have purchasing power which they are free to use as they choose. This will be our money, and goods will have a price, within this realm.

Shall we also let them choose whether to spend or not to spend? The dangers here are two: fluctuations of total spending (including that on capital formation) and excess saving not spent on capital formation. Unless incomes and the feeling of insecurity fluctuate heavily, the first danger is not great. With large concentrated incomes eliminated, the second danger would be practically removed. Fluctuating credit for busing durable consumers’ goods would create more danger; and for industrial investments, more still. Control of credit can be made effective downward, but not very well upward, even if credit is a public monopoly.

As to public services, I shall assume that we keep the present list, with reservations as to poor-relief if the need is changed or other agencies substituted; and that the question is as to additions. The big question is whether we make the main body of production a public service. If we do, it will be for two main reasons: to control inequality of distribution, and to control the relation between the current volume of production and the spendings (consumer and capital) it depends on to take the goods off the market, to the end that utilized production may be limited only by power and willingness to produce, no fall short of that limit as at present.

If we do that, problems arise of means to secure efficiency from workers and managers, source and allotment of capital and possible place and reward for private savings, determination of production programs and of kinds of goods and services to be produced, including new ones, organization of invention and incentives, determination of wages, of prices, of income devoted to free public series, pensions, etc. procedure concerning workers’ choice of occupation and shifting from one to another, selection of workers and treatment of those nobody wants—that’s enough to start with and to give some idea of the sort of thing that would be encountered. How combat the stagnation of bureaucracy, the multiplication of supervisors, the business of passing the buck and finding scapegoats for poor performance (I assume we shouldn’t want the scapegoats shot)? What sort of “social accounting” shall we use?

If we permit private saving, what shall we do about inheritance, and how prevent evasions of our policy.

We can embody the essentials of our plan in a constitution; how shall we provide for amendment? Shall the whole be in the hands of elected officials? If so, will anyone dare to support an opposition ticket? Will dissatisfied elements believe that a reelection was genuine and fair? Will such factors as these lead the system into a dictatorship of force, even if it did not start that way?

_________________________________

Bibliography for Economics 109
[no date]

Economics 109

Veblen:         “The Place of Science in Modern Civilization”

The Theory of Business Enterprise
The Theory of the Leisure Class
The Instinct of Workmanship.

Davenport, H. J. “Economics of Enterprise”

Anderson, B. M. “Social Value”

Cooley, C. H. : “Social Process”

Hobson, J. A. : “Work & Wealth”.

Pigou, A. C.: “Economics of Welfare” or “Wealth & Welfare”

Tugwell, (ed):  “The Trend of Economics”.

Boucke, O. F.: Critique of Economics”.

Mill, J. S.:      “Principles of Economics”

Essays on “Liberty” and “Utilitarianism”.

Clark, J. B.    “The Philosophy of Wealth”.

“Essentials of Economic Theory”.

Dickinson: Motives in Economic Life

Parker, Carleton: The Casual Laborer.

Wicksteed: “The Common Sense of Pol. Econ.”

Watkins: G. P. “Welfare as an Economic Quantity”.

Hoover Committee “Waste in Industry”

Chase, Stuart: The Tragedy of Waste”.

Clark, J.M.: “Social Control of Business”

“Economics of Overhead Costs”.

Ely: “Property & Contract”.

Commons: “Legal Foundations of Capitalism”.

Sidgwick: Principles of Political Economy.”

Tawney: The Acquisitive Society”

Edie: Principles of the New Economics.”

[Day, Clarence] “This Simian World.”

_________________________________

Economics 109
Final Examination
[undated]

 

Answer two questions, but not more than one of questions 3-8, inclusive.

  1. Discuss effects of recent military techniques on problems of the economic organization of a country.
  2. With respect to equality as a social-economic objective, what does the prevailing American social judgment favor? Note questions of degree of equality or inequality, and questions of different matters in respect of which people may be equal or unequal.
  3. “Individuals allocate expenditures so as to secure equal marginal utilities from money spent for different things, or to put themselves on a basis of indifference as between different expenditures”. Discuss. If true, why and by what psychological process; if not true, suggest amendments in the light of more realistic psychology.
  4. If you were founding a new society, what would you do about consumers’ freedom of choice, and why? If you allow such freedom in important degree, consider how far this commits you to other features of the present economic system.
  5. Discuss the economic importance of the “instinct of workmanship”.
  6. Compare the theory of “balked dispositions” with the tradition utilitarian treatment of the subjective sacrifices of production.
  7. Discuss economic significance of intelligence tests, in the light of the question what kind of a population is suitable or unsuitable to a system of private enterprise, either complete or modified.
  8. Discuss the social productivity of advertising and salesmanship, and compare this problem with the traditional concept of production, as bearing on the social productivity of private enterprise.
  9. Do the same for the social productivity of “bargaining” activities.
  10. Discuss the range of possible kinds of agencies available to perform economic functions.
  11. Would you assume that the attempt to maximize profits (with or without competition) standardizes economic behavior sufficiently to warrant using this assumption as a sufficient basis for deductive theorizing: that is, as furnishing all the basis such theorizing needs to take account of?
  12. Discuss the meaning of supply schedules or demand schedules, taking account of complexities or difficulties involved.

 

Source: Columbia University Libraries. Manuscript Collections. Papers of John M. Clark. Box 24, Unlabeled Folder.

Image Source: Detail from Columbia University group photo of economics department from the early 1930s. Columbia University Libraries. Manuscript Collections. Columbiana, Department of Economics Collection, Box 9, Folder “Photos”.