Category: Exam Questions

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Exam Questions Harvard Suggested Reading Syllabus

Harvard. Mathematical Economics. Leontief, 1948

There are only marginal differences to be found  from the course outline for 1941-42 and 1942-43, e.g. “Time lags and sequences” instead of “Cobweb Model” plus addition of Mosak (General Equilbrium Theory in International Trade) and Samuelson (Foundations of Economic Analysis) to the course bibliography. We also see that Marshall’s Mathematical Appendix was a “new” assignment for the reading period.  Midterm and Final exam questions are included in this posting.

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[Course Outline, Leontief]

Economics 4a
Spring Term, 1948

Introduction to the Mathematical Treatment of Economic Theory

  1. Introductory remarks
    Profit function
    Maximizing profits
  2. Cost functions: Total costs, fixed costs, variable costs, average costs, marginal costs, increasing and decreasing marginal costs.
    Minimizing average total and average variable costs
  3. Revenue function
    Price and marginal revenue
    Demand function
    Elasticity and flexibility
  4. Maximizing the net revenue (profits)
    Monopolistic maximum
    Competitive maximum
    Supply function
  5. Joint costs and accounting methods of cost imputation
    Multiple plants
    Price discrimination
  6. Production function
    Marginal productivity
    Increasing and decreasing productivity
    Homogeneous and non-homogeneous production functions
  7. Maximizing net revenue, second method
    Minimizing costs for a fixed output
    Marginal costs and marginal productivity
  8. Introduction to the theory of consumers’ behavior
    Indifference curves and the utility function
  9. Introduction to the theory of the market
    Concept of market equilibrium
    Duopoly, bilateral monopoly
    Pure competition
  10. Time lag and time sequences
  11. Introduction into the theory of general equilibrium

Bibliography:

R. G. D. Allen, Mathematical Analysis for Economists
Evans, Introduction into Mathematical Economics
Antoine Cournot, Researches into the Mathematical Principles of the Theory of Wealth
Jacob L. Mosak, General Equilibrium Theory in International Trade
Paul A. Samuelson, Foundations of Economic Analysis

Reading Period Assignment: Alfred Marshall, Principles of Economics, Mathematical Appendix

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. HUC 8522.2.1, Box 4, Folders “Economics, 1947-1948 (1 of 2)”.  Copy also in Harvard University Archives, Wassily Leontief Papers. Course Material Box 2 (HUG 4517.45); Folder “Spring 1948-Econ. 4A”.

 

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[Midterm Exam]

Economics 4a
Hour Examination
March 23, 1948

Answer two questions, including Question 3.

1.  Prove that the average costs tend either

(a) toward equality with the marginal costs, or
(b) toward infinity

as the output of an enterprise is reduced toward zero.

2. Describe the relationship between the cost curve and the supply curve of an enterprise.

3.  An industrial enterprise produces jointly two kinds of outputs, X and Y and uses one kind of input, Z. Given

(a)  the production function z = f(x,y), where z, x and y are quantities of Z, X and Y and
(b)  the prices Pz, Px and Py of Z, X, and Y

derive the equations the solution of which would determine the most profitable input-output combination. Don’t forget the secondary conditions.

 

Source: Harvard University Archives, Wassily Leontief Papers. Course Material Box 2 (HUG 4517.45); Folder “Spring 1948-Econ. 4A”.

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[Final Exam]

1947-48
HARVARD UNIVERSITY
ECONOMICS 4a

Please write legibly

Answer four questions including question 6.

  1. Show how a change in the magnitude of the fixed costs would affect the supply curve of a profit-maximizing enterprise selling its product on a competitive market.
  2. Given:

      The production function,

x = yz2

where x is the quantity of output, and y and z represent the amounts of two different inputs purchased at the fixed prices py and pz respectively,

Derive:

            The total cost curve of the enterprise. (A total cost curve represents the functional relationship between various outputs and the smallest total costs at which they can be produced.)

  1. A monopolistic producer sells his output in two separate markets. His cost curve is:

C = K + Q

where C represents the total cost, Q the total output, and K a positive constant. The demand curves in the two markets are:

p1 = A – q1

p2 = B – q2,

p1, p2 and q1, q2 represent the prices charged and quantities demanded in the two markets respectively. A and B are positive constants.

What prices would the monopolist charge in the two markets in order to maximize his total net revenue?

  1. A worker maximizes his utility function:

u(c, l)

where c represents his consumption and l the number of hours worked. The hourly wage rate is w dollars.

Determine the equation showing how many hours of labor, l, the worker will supply at any given wage rate, w. Analyze the conditions under which an increase in the wage rate might reduce the number of hours worked.

  1. Discuss the problem of measurability of utility.
  2. A consumer receives a fixed income y1 in “year I” and a fixed income y2 in “year II.” He is free to augment his consumption during year I by borrowing money from the outside on condition that it be paid back with interest out of the income of year II. He can also spend during the first year less than his total income y1. The resulting savings plus the accrued interest will be added in this case to the second year’s consumption. No transfer of any savings beyond the second year and no borrowing against the income of the later years is allowed.

Given:

(a) the utility function,

u(x1, x2)

to be maximized where x1 and x2 stand for the consumption of the first and the second year, and

(b)  the rate of interest i

Derive:

(1) the equations which determine the optimum amount of savings (or borrowings) s;

(2) the formula showing the effect of an infinitesimal change in the rate of interest i on the amount of savings (or borrowings) Interpret the meaning of such a formula.

 

Final. May, 1948.

Source: Harvard University Archives, Wassily Leontief Papers. Course Material Box 2 (HUG 4517.45); Folder “Spring 1948-Econ. 4A”.

Image Source: Harvard Album, 1947.

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Exam Questions Harvard Undergraduate

Harvard. Labor Economics and Social Reform Divisional Exam, 1939

This posting offers the special examination questions for labor economics and social reform. Socialist themes can be seen to have played a much greater role in 1939 than later in the 20th century.

Concentrators in Economics will have to pass in the spring their Junior year a general examination on the department of Economics, and in the spring of their Senior year an examination correlating Economics with either History or Government (this correlating exam may be abolished by 1942), and a third one on the student’s special field, which is chosen from a list of eleven, including economic theory, economic history, money and banking, industry, public utilities, public finance, labor problems, international economics, policies and agriculture.
Courses in allied fields, including Philosophy, Mathematics, History, Government, and Sociology, are suggested by the department for each of the special fields. In addition, Geography 1 is recommended in connection with international policies or agriculture.
[Source: Harvard Crimson, May 31, 1938]

A printed copy of questions for twelve A.B. examinations in economics at Harvard for the academic year 1938-39 can be found in the Lloyd A. Metzler papers at Duke’s Economists’ Papers Project. 

Economic Theory,
Economic History Since 1750,
Money and Finance,
Market Organization and Control,
Labor Economics and Social Reform.

  • One of the Six Correlation Examinations given to Honors Candidates. (May 12, 1939; 3 hours)

Economic History of Western Europe since 1750,
American Economic History,
History of Political and Economic Thought,
Public Administration and Finance,
Government Regulation of Industry,
Mathematical Economic Theory.

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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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DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
Labor Economics and Social Reform

(Three hours)

 

PART I
(About one hour)

  1. Write an essay on one of the following topics:

(a) wage theory and collective bargaining,
(b) the functions and ideal qualifications of labor-leaders in present-day America, and your appraisals of several of the men now prominent in this capacity,
(c) the rights and duties of labor and employers,
(d) mobility of labor and the national income and its distribution,
(e) the essentials of an adequate, sound, and feasible program for social security,
(f) the possibilities, methods, and probable results of several types of governmental action to lessen inequalities in the distribution of income,
(g) could a socialist society be a liberal and democratic society?
(h) is there any socialism in German National Socialism?
(i) class-struggle in the United States,
(j) the effects of differences of nationality, race, and religion among American workers on the American labor movement,
(k) the effects of capitalism, and the possible effects of socialism, on population growth,
(l) the role of Marxism in the labor movement, in Europe and in America.

Part II
(About one hour)

Answer two questions. Candidates for honors must answer one starred question.

  1. (*) “The industrial system of the ‘machine age’ can give the working population reasonably full employment and high wages only in the periods during which a high rate of technical and economic progress is maintained.”
  2. (*) Discuss the effects upon each other of phases of the business cycle and trade union policies, and the possibilities of the latter as a means of mitigating the cycle.
  3. Discuss legal limitation of hours of work by individual state with respect to (a) questions of constitutionality and (b) possible economic consequences.
  4. Discuss the merits of the proposal for a government-guaranteed “annual wage” in the building trades.
  5. (*) Explain and discuss the main economic problems created in a society by the effects of the declining birth-rate on the distribution of the population among different age-groups.
  6. (*) “The confident belief of reformers bent on equalizing incomes, that inequalities of economic success are the fault of society and not the result of differences of innate ability, cannot be justified in the face of the relevant evidence and results of common-sense reasoning.”
  7. Describe the principal features of the development of workmen’s compensation in the United States or in one European country.
  8. Discuss the achievements and effects of the P. W. A. or of the W. P. A.
  9. (*) “The organization and mechanism of the socialist economy is almost identical with that of monopolistic corporate capitalism. It is the results which would differ.”
  10. (*) If a socialist society gave all its members either equal incomes, or incomes proportioned to their needs or to their sacrifices rather than to their productive contributions, do you think that its policy in this respect would interfere with attainment of the most efficient allocation and use of all labor resources? Explain.
  11. “It is evident that mankind can neither stand pat with the aging Herbert Spencer, nor move on, except to its ruin, with the young men in colored shirts; it’s only hope lies in the creation of a liberal capitalism.”
  12. Explain and support your opinion of the view that in this country the Communists and all “agitators” on the far-left are unlikely to obtain any ends of their own and are likely, instead, to goad or frighten the business men into setting up a regime of American fascism.

 

Part III
(About one hour)

Answer two questions.

  1. “The trade union seems to be the only institution which can prepare us for, or aid us in, social change.”
  2. “The labor movement owes the support of the rank-and-file of the workers who join it, much less to intelligent pursuit of their own economic interests by the latter as individuals, than to their emotional capacities for blind devotion to an ideology and fighting cause which is to them a class religion.”
  3. Compare the functions of trade unions under capitalism with the functions they might have in a socialist society.
  4. In what order of importance do you rank the following objectives of social reform for the benefit of labor: higher real wages; full and steady employment and general security; “industrial democracy” or participation by the workers in the “control” of industry? – Do you think all three objectives are mutually consistent? Explain.
  5. “The goal of intelligent social reform is neither ‘freedom’ of the businessmen to do as they please, nor of government ‘control’ of them reflecting merely the opposing interests and moral sentiments of other people; but is the co-operation of all citizens under expert guidance based on scientific knowledge of economic geography, of our industrial technology and its possibilities, and of the needs and abilities of all sectors of the population.”
  6. What is to be learned from the experience of N. R. A. in the United States and of the Front Populaire in France about the possibility of increasing real wages by raising money wages?
  7. “The increasing organization of interest groups and the resurgent resurgence of mercantilist state regulation of international and domestic markets promise an end of the elaborate economic organization and division of labor and an end of political freedom as well.”
  8. “The traditional view has been that it is consumers who suffer the chief losses from monopoly, but the fact is that the principle losses fall on labor.”
  9. What should be the attitude of consistent Communists in this country at the present time toward such popular economic and monetary theories as those of the advocates of the Townsend Plan? Explain.

May 10, 1939.

 

Source: David M. Rubenstein Rare Book & Manuscript Library, Duke University. Lloyd A. Metzler Papers, Box 7; [Harvard University], Division of History, Government and Economics, Division Examinations for the Degree of A.B., 1938-39.

 

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Columbia Exam Questions Syllabus Uncategorized

Columbia. Junior Year Political Economy. Mayo-Smith, 1880

Yesterday while trawling through the Hathitrust digital library, I came across a collection published in 1882, Examination Papers Used During the Years 1877-1882 in Harvard, Yale, Columbia, Cornell, Amherst and Williams Colleges. (The link takes you to the download page at archive.org)

Hoping for some political economic gold, I paged through the collection that appeared mostly focused on entrance examinations for Latin, Greek, mathematics etc., but eventually I stumbled upon a single examination in political economy for a junior year course (1880) at Columbia College.

The last question of that exam explicitly quotes from the course textbook so I went over to Google Books and searched the phrase “to secure a delusive benefit to individuals”. Sure enough, I could identify the textbook in question as the Manual of Political Economy for Schools and Colleges (3rd ed. 1876) by James Edwin Thorold Rogers. 

Now drunk on Google Books power, I text-searched Rogers’ Manual to locate the pages for answers to all the questions on the 1880 exam. You will find the corresponding page numbers in square brackets following the questions transcribed below…You’re welcome.

The course was taught by Richmond Mayo-Smith as seen in the Columbia College Handbook of Information 1880. I have included descriptive information about the junior and senior classes in history and political economy found there.

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[From the Columbia College Handbook of Information 1880]

SCHOOL OF POLITICAL SCIENCE.

PROFESSORS

John W. Burgess, A. M.,
Constitutional and International History and Law		 Richmond M. Smith, A.M.,
Political Economy and Social Science (Adjunct).
Archibald Alexander, A.M., Ph.D.,
Philosophy (Adjunct).

OTHER OFFICERS

E. Munroe Smith, LL.B., J.U.D:,
Lecturer on the Roman Law		 Clifford R. Bateman, LL.B.,
Lecturer on Administrative Law.

[…]

HISTORY, POLITICAL SCIENCE, AND INTERNATIONAL LAW.

SOPHOMORE CLASS.

1ST TERM. —German History.
2D TERM.—French History.

JUNIOR CLASS.

1ST TERM—English History.
2D TERM—Political Economy.

SENIOR CLASS.

1ST TERM—Constitutional History of the United States.
2D TERM—Constitutional Law of the United States.
ELECTIVE BOTH TERMS—Political Economy

 

History.—During Sophomore and the first half of Junior year the course in history occupies two hours per week. Some text-book is used, usually those of Freeman’s Historical course for German and French history, and Green’s Short History of the English People for English history.

The instruction to the Senior Class occupies also two hours per week throughout the year, and embraces the following subjects :

I. Character and Constitution of the Colonial Governments in North America; their relation to the English Crown and Parliament; and their history to the Declaration of Independence;

II. Character and Constitution of the Continental Congress as a Revolutionary Government; its relation to the State governments and to the people of the States as a central government ; and the history of its supersedure by the Confederate form.

III. Character and Constitution of the Confederacy as a central authority ; its relation to State governments and to the individual; the historical consequence of its defects and weaknesses, and its final supersedure by the Federal form.

IV. History of the Formation and Adoption of the Federal Constitution; nature and powers of the government which it established; its relation to the State governments and the individual citizen.

V. Interpretation of the Provisions of the Federal Constitution.

VI. History of the Development of the Federal Constitution from its adoption to the present time.

The text and reference books used in connection with this course are: Hildreth, History of the United States; Bancroft, History of the United States; Curtis, History of the Constitution; The Federalist; Story, Constitutional Law; Pomeroy, Constitutional Law; Von Holst, Constitution and Democracy in the United States; Benton, Thirty Years’ View; Jennings, Eighty Years of Republican Government in the United States; Fisher, Trial of the Constitution; Decisions of the United States Supreme Court upon all constitutional questions.

 

Political Economy—There are two courses in Political Economy. During the second term of Junior year it is required from all students of that class. A systematic outline of the science is given, generally with the use of a text-book, either Fawcett’s or Rogers’s Manual of Political Economy.

[Fawcett, Henry. Manual of Political Economy. 1st ed., 1863; 2nd ed., 1865; 3rd ed., 1869; 4th ed., revised and enlarged 1874; 5th ed., revised and enlarged 1876; 6th ed., 1883;  7th ed., 1888;  8th ed., 1907.

Rogers, James Edwin Thorold. A Manual of Political Economy for Schools and Colleges. First Edition, 1868; Second edition, revised, 1869; Third edition revised, 1876.]

Political Economy may be elected by the students of the Senior Class, two hours per week throughout the year. Instruction is given by lectures on the following topics:

Systems of Land Tenure, past and present, in different countries, and their economic and social effects; Science of Finance, including a consideration of Money, Paper Money, Banking, and Taxation; Financial History and present situation of England, Germany, France, and the United States. All these topics are treated historically as well as critically; and with reference to the economic development in the History of Civilization.

Three or four theses on topics assigned by the professor are required from students of this class, To furnish these students with facilities for such work, besides the books in the college library, a special library of works in the department of Political Economy has been purchased and is for the exclusive use of the students of this class.

 

Source: Columbia College. Handbook of Information as to the Course of Instruction, etc., etc. New York: 1880, pp. x, 41-43.

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[Examination Questions in Political Economy 1880]

COLUMBIA COLLEGE
POLITICAL ECONOMY

JUNIOR CLASS, 1880.

[Page references to Rogers’ Manual of Political Economy, 3rd ed. 1876]

  1. Give a history of the English Poor Laws. [p. 121 ff.]
  2. What do you mean by Co-operation? What are the supposed advantages to the laborer? Explain the system of the Rochdale Equitable Pioneers [pp. 135-137] and of the Schultze-Delitsch Credit-Banks [p. 106-109].
  3. What determines the rate of wages of labor, and what effect does the customary food of laborers have on their wages? [p. 65]
  4. Explain the following sentence: “It will be clear that the machinery of a Trade’s Union cannot increase wages by depressing the profits of capital.” [p. 90]
  5. Explain and illustrate the following: “Banks of issue find it possible to circulate a far larger amount of paper than the gold on which the paper is based.” What effect does the abstraction of gold have in such a case? [pp. 43 ff.]
  6. What is meant by an income tax; on what part of the income should it be levied and why? [pp. 278-281]
  7. Explain the origin of the Irish cottier system of land tenure, its evils and the proposed remedy. [pp. 175 ff.]
  8. Explain the following sentences from the text book:
    “It (Protection) inflicts actual suffering or inconvenience on the public in order to secure a delusive benefit to individuals.” “It will be clear also that the Protection cannot stimulate general industry.” “In fact, whenever it (the state) protects particular kinds of labor it diminishes capital.” “Every country enjoys a natural protection to its manufactures.” [pp. 234-235]

 

Source: Harry Thurston Peck (ed.), Examination Papers Used During the Years 1877-1882 in Harvard, Yale, Columbia, Cornell, Amherst and Williams Colleges. New York: Gilliss Brothers, 1882, p. 57-58.

Image Source:  University and their Sons. History, Influence and Characteristics of American Universities with Biographical Sketches and Portraits of Alumni and Recipients of Honorary Degrees. Editor-in-chief, General Joshua L. Chamberlain, LL.D.  Boston: R. Herdon Company.  Vol. 2, 1899, pp. 582.

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Chicago Exam Questions Suggested Reading Syllabus

Chicago. Theory of Income and Employment. Domar, 1948

Jacob Marschak’s course “The Theory of Income and Employment” was taught by the (visiting) assistant professor of economics and research associate in the Cowles Commission, Evsey D. Domar, in the Spring Quarter of 1948. The appointment must have taken place after the Announcements for 1947-1948 were published in May, 1947, so one presumes there was a relatively late change in plans.

For those interested in Domar’s early backstory,  Evsey (Joshua) Domashevitsky arrived in the U.S. on the S.S. Taizo Maru that departed 27 July 1936 from Kobe, Japan and arrived at the port of Los Angeles, California August 16. Domar (“race: Hebrew; nationality: White Russian”) was born April 16, 1914 in Lodz, Poland and last resided in Dairen, Manchuria (now Dalian or Talien, China) before he left for the U.S. He worked his way through UCLA and his graduation photo from the college yearbook graces this posting.

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ECONOMICS 335
THE THEORY OF INCOME AND EMPLOYMENT

Spring, 1948
E. D. Domar

Required Reading List

It is assumed that the students are familiar with the contents of the first 20 chapters of A. P. Lerner’s Economics of Control.

 

PART I.   THE MEASUREMENT OF TOTAL OUTPUT.         March 30 – April 1

Simon Kuznets, National Income and Its Composition, V. I, Ch. 1.
J. R. Hicks and A. G. Hart, The Social Framework of the American Economy, ch. 3, 8, 10-13, 15, 16.
National Planning Association, National Budgets for Full Employment.
Survey of Current Business, National Income Supplement, July, 1947.

 

PART II.   THE ESSENCE OF THE THEORY.    April 3- 28.

J. M. Keynes, The General Theory of Employment, Interest and Money.
A. P. Lerner, Economics of Control, ch. 21-25.
American Economic Association, Readings in Business Cycle Theory, ch. 5-12.
S. E. Harris, editor. The New Economics, ch. 9, 11-15, 19, 33, 36.
Oscar Lange, Price Flexibility and Employment, pp. 1-90.
Milton Friedman, “Lange on Price Flexibility and Employment,” American Economic Review, Sept. 1946 (Reprints in Harper Reserve Room).
Lawrence Klein, The Keynesian Revolution, ch. 3-5.
Gottfried Haberler, Prosperity and Depression, Ch. 8, 13.
A. C. Pigou, “The Classical Stationary State,” The Economic Journal, December 1943.
J. E. Meade and P. W. S. Andrews, “Summary of Replies to Questions on Effects of Interest Rates,” and “A Further Inquiry into the Effects of Rates of Interest,” Oxford Economic Papers, No. 1, 1938 and No. 3, 1940.
Simon Kuznets, “Relation between Capital Goods and Finished Products in the Business Cycle,” in Economic Essays in Honor of Wesley Clair Mitchell.
R. F. Kahn, “The Relation of Home Investment to Unemployment,” Economic Journal, 1931.

 

PART III.   UNDERCONSUMPTION, MATURE ECONOMY, AND CAPITAL ACCUMULATION.        May 4-14.

A. H. Hansen, Fiscal Policy and Business Cycles.
A. H. Hansen, Economic Policy and Full Employment, ch. 15, 16, Appendix B.
E. D. Domar, “Expansion and Employment,” American Economic Review, 1947 (reprints on reserve).
E. D. Domar, “The Problem of Capital Accumulation,” (Mimeographed).
P. M. Sweezy, The Theory of Capitalist Development, ch. 10, 12.
J. A. Schumpeter, Capitalism, Socialism and Democracy, Part II.
G. Terborgh, The Bogey of Economic Maturity.
Readings in Business Cycle Theory, ch. 19-20.

 

PART IV.   POLICY          May 15- June 10.

(in addition to preceding readings)

Board of Governors of the Federal Reserve System, Public Finance and Full Employment, Postwar Economic Studies No. 3, pp. 1-21, 53-68.
A. H. Hansen, Economic Policy and Full Employment, parts IV, V, VI.
M. De Chazeau and others (Committee for Economic Development) Jobs and Markets: How to Prevent Inflation and Depression.
E. F. Burchard and others (Oxford University Institute of Statistics), The Economics of Full Employment.
Mints, Hansen and others. Symposium of Fiscal and Monetary Policy, The Review of Economic Statistics, May 1946.
J. Mosak and Arthur Smithies, “Forecasting Post-War Demand,” Econometrica, 1945.
H. Simons, “Hansen on Fiscal Policy,” The Journal of Political Economy, 1942.
National Budgets for Full Employment
Economic Report of the President, January 1948.
A. P. Lerner and F. D. Graham, Planning and Paying for Full Employment.
M. Friedman, “A Monetary and Fiscal Framework for Economic Stability,” (Mimeographed).
W. H. Beveridge, Full Employment in a Free Society, a general survey, with emphasis on Appendix C.

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Economics 335
Final Examination

June 17, 1948
One hour and fifteen minutes

Answer all questions. They carry equal weights.

  1. Ever since the end of the war, it has been asserted by various authorities that increased production is the best cure against inflation. But it can be also argued that while increased production enlarges the supply of goods, it also generates additional income and therefore demand. So in the end it may or it may not mitigate inflation.
    Analyze this question and try to find the correct answer. The quality and depth of your analysis will count more than its quantity.
  2. “In spite of his claims to the contrary, Keynes did not succeed in proving the possibility of underemployment equilibrium if wages and prices were flexible. That a long period of unemployment could persist as a result of wage and price rigidity we had known long before Keynes.”
    Comment on this statement and show what effects would flexible prices and wages have on elimination of unemployment (in a depression) and stabilization of the price level (in an inflation). Indicate clearly every step in your analysis. What practical recommendations follow from your discussion?
  3. You were employed by the U. S. Bureau of the Budget in 1941 to make an economic forecast and to recommend practical policy measures to prevent both unemployment and inflation in the year 1942, when large war expenditures were expected. Following roughly the method of national budgets (or an equally good alternative one) set up a hypothetical but reasonable numerical model for the year 1942. Show clearly (a) the information you will require; (b) the assumptions you will make; (c) how (a) and (b) are brought together; and (d) policy recommendations you will make. Indicate each step explicitly.
  4. Write for some twenty minutes on any subject covered in the course, but not included in the preceding questions and not studied in your term paper. Make sure you have something worth-while to say.

 

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Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Evsey D. Domar Papers, Box 15, Folder: “Macroeconomics, Old Reading Lists”; Box 16, Folder: “Final Exams. Johns Hopkins, Stanford, U of Michigan”.

Image Source: Joshua Domashevitsky (Evsey D. Domar), University of California at Los Angeles, Bruin Life Yearbook/Southern Campus Yearbook, 1939, p. 52. Caption to graduation picture: “Joshua Domashevitsky, A. B./Economics/ Transferred from State College of Law, Manchuria: Foreign Trade Club; Artus, Chancellor of the Exchequer 4.”

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Chicago Exam Questions

Chicago. Economic Theory Exams, A.M. and Ph.D. Summer 1949

The economic theory examination committee at the University of Chicago in the Summer Quarter of 1949  for the A.M. and Ph.D. degrees was made up of F. H. Knight (chair), O. H. Brownlee, M. Friedman, and  L. A. Metzler.  49 students took Part I of the exam (33 were Ph.D. students, 16 were A.M. students, equally divided between economics majors and minors). Part II of the examination was taken by 14 Ph.D. students (no A.M. students).  It does not appear that Knight participated in the grading of Part II however.

Two minor notes: Students were assigned numbers, presumably to assure anonymity with respect to their examiners, but the “unlucky” number 13 was not assigned to anyone. The “grade sheet” for the exams is labelled the “Report on Written Examination” which is similar to the use of the word “report” by the registrar’s office on official University of Chicago transcripts (for this usage, see the Patinkin transcripts).

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ECONOMIC THEORY, Part I
[August 2, 1949]

Written examination for the Ph.D. and A. M. Degrees, Summer Quarter, 1949

Ph.D. candidates: Time: 3½ hours. Answer all questions

A.M. Major candidates: Time: 3 hours. Answer question #2 and two others.

A.M. Minor candidates: Time: 2 hours. Answer question #2 and one other.

 

  1. (a) Discuss and evaluate alternative theories of “Profits” as a distributive share.
    (b) It is frequently said that in a private enterprise economy the producers’ motive is to maximize “profits”. Discuss the meaning of “profits” in this connection in relation to your answer to (a).
  1. Write briefly on the meaning of the capital concept and its importance in interpreting economic growth or change. Relate your discussion to the case of a Crusoe economy and state whether (and if so how) the principles are different for the competitive pecuniary social order.
  1. With reference to federal legislation assuring to every resident in the U.S.A. medical care by the physician and hospital of his choice, free and with no special taxation: Appraise the proposal as to effects upon general welfare, assuming that the alternative is the sale of medical insurance, not subsidized, but with the same distribution of personal income effected by cash “relief”.
  1. Briefly discuss the familiar diagram of a family of short-run cost curves for a firm, with an “envelope” as a long-run curve. State the main “cases” for price-equilibrium under monopoly and under “perfect competition.” Explain why the point of tangency with both curves descending may be such an equilibrium-supply, and particularly why it locates the minimum cost for the corresponding output.
  1. Briefly outline or list the main features of the Ricardian theories of value and of distribution and contrast each point with a “sound” modern view.”

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ECONOMIC THEORY, Part II
[August 4, 1949]

Written examination for the Ph.D. Degree, Summer Quarter, 1949.

Time: 2½ hours.

  1. Assume an economic system in which real expenditure upon goods and services (real consumption, investment, government expense) is a function of real income and the interest-rate; show that the set of values which satisfy the conditions for equilibrium in the commodity market (make real savings and investment equal) need not contain the “full-employment” income level; i.e., that level of real income which would be produced when the quantity of labor supplied equals the quantity demanded, both the labor supply and labor demand being functions of the real wage.
    Evaluate the assumptions of this system on terms of their realism, citing the relevant evidence; and indicate modifications which would result in the inclusion of the “full employment” level of income as one of the values satisfying the condition for equilibrium in the commodity market.
  1. Under the so-called “security-reserve proposal” member banks would be required to keep a supplementary reserve against deposits over and above the reserves they are now required to keep in the form of a deposit with a Federal Reserve Bank. This supplementary reserve could be in the form of government securities.a. What is the main purpose, or purposes, of this proposal?
    b. What effect would it have on the ability of the banks to expand credit, and how?
    c. In the light of present economic conditions, what can you say about the urgency of such a “reform”?
  1. It is a common view today that an equal reduction of both taxes and governmental expenditure would contribute to an increase of the national income or counteract a tendency to depression. State your position and discuss carefully.

Source: Hoover Institution Archives. Milton Friedman Papers, Box 76, Folder 10 “University of Chicago Econ. 300B”.

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Exam Questions Harvard

Harvard. A.B. Honors Degree Examination in Mathematical Economic Theory, 1939

Today’s posting is a transcription of the “correlation examination” questions for mathematical economic theory given at Harvard in May 1939.

A printed copy of questions for twelve A.B. examinations in economics at Harvard for the academic year 1938-39 can be found in the Lloyd A. Metzler papers at Duke’s Economists’ Papers Project. 

Concentrators in Economics will have to pass in the spring their Junior year a general examination on the department of Economics, and in the spring of their Senior year an examination correlating Economics with either History or Government (this correlating exam may be abolished by 1942), and a third one on the student’s special field, which is chosen from a list of eleven, including economic theory, economic history, money and banking, industry, public utilities, public finance, labor problems, international economics, policies and agriculture.
Courses in allied fields, including Philosophy, Mathematics, History, Government, and Sociology, are suggested by the department for each of the special fields. In addition, Geography 1 is recommended in connection with international policies or agriculture.
[Source: Harvard Crimson, May 31, 1938]

Economic Theory,
Economic History Since 1750
Money and Finance,
Market Organization and Control,
Labor Economics and Social Reform.

  • One of the Six Correlation Examinations given to Honors Candidates. (May 12, 1939; 3 hours)

Economic History of Western Europe since 1750,
American Economic History,
History of Political and Economic Thought,
Public Administration and Finance,
Government Regulation of Industry,
 Mathematical Economic Theory.

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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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DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS
CORRELATION EXAMINATION

Mathematical Economic Theory

(Three hours)

 

Answer either FOUR or FIVE questions, but not more than THREE from either group. If you answer only FOUR questions, write about one hour on ONE of the questions in Group B and mark your answer “Essay.” This question will be given double weight.

A

  1. A consumer’s indifference map for two goods X and Y is defined by \large\frac{4-\sqrt{y+1}}{x+4}=a
    Draw a graph showing the five indifference curves for the values 2, 3, 4, 5, 6 of the parameter a. Verify that they are of “normal” form.
  2. A business produces an income of $x this year and $y next year, where these values can be varied according to the relation y=1000-\frac{{{x}^{2}}}{250} . Show how \left\{ \left( -\frac{dy}{dx} \right)-1 \right\} can be interpreted as the marginal rate of return over cost. Show that the value of this marginal rate is \frac{x-125}{125} when this year’s income is $x.
  3. The market demand for a good is given by p=\beta -\alpha x . The market is supplied by two duopolists with cost functions {{\pi }_{1}}={{a}_{1}}x_{1}^{2}+{{b}_{1}}{{x}_{1}}+{{c}_{1}} and {{\pi }_{2}}={{a}_{2}}x_{2}^{2}+{{b}_{2}}{{x}_{2}}+{{c}_{2}} . Assuming that the “conjectural variations” are zero, show that the reaction curves are straight lines. Deduce the equilibrium output of each duopolist.
  4. (a) A steel plan is capable of producing x tons per day of a low grade steel and y tons per day of a high grade steel, where y=\frac{40-5s}{10-x} . If the fixed market price of low grade steel is half of that of high grade steel, show that about 5½ tons of low grade steel are produced per day for maximum total revenue.
    (b) The steel producer described in Section (a) monopolizes the sale of both quality steels. If the prices of low and high grade steel are $px and $py per ton, the demands are {{p}_{x}}=20-x and {{p}_{y}}=25-2y . Find an equation giving the output x of low grade steel for maximum total revenue. Show, by a graphical method, that just under 6 tons of this steel are produced per day.
  5. Given the marginal utility equations
    {{x}_{1}}d{{y}_{1}}+{{y}_{1}}d{{x}_{1}}\ge 0 , {{x}_{2}}d{{y}_{2}}+{{y}_{2}}d{{x}_{2}}\ge 0 ,
    for which the indifference curves are the rectangular hyperbolas {{x}_{1}}{{y}_{1}}={{c}_{1}} and {{x}_{2}}{{y}_{2}}={{c}_{2}} , given initial amounts a1, b1, and a2, b2 for the individuals (1) and (2) respectively, show that the equilibrium point for a single price transaction is
    {{x}_{1}}=\frac{{{a}_{1}}+p{{b}_{1}}}{2p} , {{y}_{1}}=\frac{{{a}_{1}}+p{{b}_{1}}}{2p} , where p=\left( \frac{{{b}_{1}}+{{b}_{2}}}{{{a}_{1}}+{{a}_{2}}} \right) .
  6. The demand for tea is {{x}_{1}}=40\frac{{{p}_{2}}}{{{p}_{1}}} and for coffee {{x}_{2}}=10\frac{{{p}_{1}}}{{{p}_{2}}} thousand lbs. per week, where p1 and p2 are the respective prices of tea and coffee in pence per lb. At what relative prices of tea and coffee are the demands equal? Draw a graph to show the shifts of the demand curve for tea when the price of coffee increases from 2s to 2s 6d and to 3s per lb.
  7. The production function is x=A{{a}^{\alpha }}{{b}^{\beta }} , where A, \alpha and \beta are constants. If the factors are increased in proportion, show that the product increases in greater or less proportion according as \left( \alpha +\beta \right)  is greater or less than unity. How is this property shown on a vertical section of the production surface through 0 and a given point on the surface? What is the special property of the case \alpha =1-\beta ?
  8. Examine the utility function u=\frac{x+a}{c-\sqrt{y+b}} , where a, b and c are positive constants, and show that the indifference map is a set of parabolic arcs and of normal form for certain ranges of values of the purchases x and y.
  9. If a{{x}^{2}}+b{{y}^{2}} = constant is the transformation function for two goods X and Y, that the marginal rate of substitution of Y production for X production is \frac{ax}{by} and that the elasticity of substitution is always unity.
  10. A monopolist produces cheap razors and blades at a constant average cost of 2s per razor and 1s per dozen blades. The demand of the market per week is {{x}_{1}}=\frac{10}{{{p}_{1}}{{p}_{2}}} thousand razors and {{x}_{2}}=\frac{20}{{{p}_{1}}{{p}_{2}}} thousand dozen blades when the prices are p1 (shillings per razor) and p2 (shillings per dozen blades). Show that the monopoly prices, fixed jointly, are 4s. per razor and 2s. per dozen blades.

 

B

  1. (a) A radio manufacturer produces x sets per week at a total cost of \$\left( \tfrac{1}{25}{{x}^{2}}+3x+100 \right) . He is a monopolist and the demand of his market is x=75-3p , when the price is $p per set. Show that the maximum net revenue is obtained when about 30 sets are produced per week. What is the monopoly price? Illustrate by drawing an accurate graph.
    (b) In the case of Section (a), a tax of $k per set is imposed by the government. The manufacturer adds the tax to his cost and determines the monopoly output and price under the new conditions. Show that the price increases by rather less than half the tax. Find the decrease in output and monopoly revenue in terms of k.
    Express the receipts from the tax in terms of k and determine the tax for maximum return. Show that the monopoly price increases by about 33 per cent. when this particular tax is imposed.
  2. (a) If u={{x}^{\alpha }}{{y}^{\beta }} is an individual’s utility function for two goods, show that his demands for the goods are x=\frac{\alpha }{\alpha +\beta }\frac{\mu }{{{p}_{x}}} and y=\frac{\beta }{\alpha +\beta }\frac{\mu }{{{p}_{y}}} where px and py are the fixed prices and \mu the individual’s fixed income. Deduct that the elasticity of demand for either good with respect to income or to its price is equal to unity.
    (b) The incomes of an individual in two years are {{x}_{0}} and and {{y}_{0}} his utility function for incomes is u={{x}^{\alpha }}{{y}^{\beta }} . Show that the demand \left( x-{{x}_{0}} \right) for loans this year decreases as the given market rate of interest 100r per cent. increases. Deduce that the individual will not borrow this year at any (positive) rate of interest if {{y}_{0}}<\frac{\beta }{\alpha }{{x}_{0}} .
  3. Discuss this quotation from Chamberlin: “We must conclude that the problems of proportion [among the factors] and of size cannot ordinarily be separated. The goal of the entrepreneur is not to discover the most efficient proportions and then to reproduce these continuously until the most efficient size is secured.”
  4. Discuss this quotation from Douglas: “Since the demand curves for labor and capital tend to approximate and to conform to the respective marginal productivity curves, it follows that an increase of 1 per cent in the quantity of labor would, other things being equal, normally tend to be followed by a decrease of ¼ per cent in the rate of wages.”
    [He uses a production function P=1.01\,\,{{L}^{{\scriptstyle{}^{3}\!\!\diagup\!\!{}_{4}\;}}}{{C}^{{\scriptstyle{}^{1}\!\!\diagup\!\!{}_{4}\;}}} ]
  5. Discuss this quotation from Broster: “Secondly, the chief concern of the railways is the maximization not of gross but of net revenue the maximum values of which are not the simultaneous product of the same level of fares. As is well known, the fare that attracts the former is that which corresponds to unit elasticity. It is perhaps not so well known—especially amongst the managers of sales departments—that except where the total cost remains constant for different rates of output of services, the fare that attracts the maximum net revenue is necessarily higher.”
  6. Discuss this quotation from Hicks: “The elasticity of substitution of labor for capital is the same as the elasticity of substitution of capital for labor.”

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers. Box 7. [Harvard University], Division of History, Government and Economics. Division Examinations for the Degree of A.B., 1938-39.

 

Categories
Columbia Exam Questions

Columbia. Exam Questions for Economics Ph.D. Candidates, 1949

After reading this examination that provides prospective candidates ample opportunity to tailor their examinations to their own course work and interests, one cannot help but conclude that the examination was not intended to test mastery of a common core nor a familiarity with a wide-range of economics. Maybe the explanation is that this is merely the reflection of a committee of individuals too polite to insist on cutting questions outside of one’s own specialization yet too stubborn to allow cuts either.

Perhaps you would like to leave in the comments the list of five questions you would choose to answer (assuming that you are eager to maximize your grade on this exam). 

I’ll go first: (5, 8, 16, 22, 26).

Your turn! (Scroll down the page to add comment)

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EXAMINATION
for
PROSPECTIVE CANDIDATES FOR THE DEGREE OF PH.D. IN ECONOMICS

(May 7, 1949, 2:00 p.m. to 5:00 p.m.)

Questions on Specific Areas of Economic Study

Answer any FIVE but NOT MORE THAN FIVE questions.

A. Write all answers legibly in ink or on a typewriter.
B. Begin each question on a fresh sheet of paper. Write your name on all sheets used.
C. Be as specific as the question permits.
D. Be sure that your statements are relevant to the question.
E. Allow yourself time to reread your answers before handing in the sheets.

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  1. What part do psychological and technological factors play in the propagation of business cycles?
  2. Is there a need for a separate theory of international trade, and if so, on what grounds?
  3. Some writers attribute the dollar shortage to the greater increase of productivity in the United States as compared to the rest of the world (including, particularly Western Europe). What do you think of this explanation?
  4. Discuss the origins of money (a) as means of payment, and (b) as means of exchange.
  5. Describe the present distribution of powers, among the various agencies concerned, over the American currency and commercial banking systems. In particular, who determines the volume of “money”?
  6. Describe and appraise both the theoretical and the historical arguments for the “stagnation” thesis.
  7. Discuss the main trends in Soviet foreign trade under the pre-war five-year plans.
  8. To what extent is the predominance of agriculture in the productive activities of a country correlated with a low level of income? Explain the relation between the level of income and the importance of agriculture.
  9. Explain the principal influences affecting the amount of capital in different countries.
  10. What was the role of fiscal policy in mercantilism?
  11. Give a critique of the role of marginalism in John R. Commons’ institutional economics.
  12. Discuss the place of the Most-Favored-Nation Clause in the French Commercial Policy in connection with the tariff legislation of 1892 and of 1919.
  13. Give an account of the organization of labor on the Soviet collective farm.
  14. Comment on the methods and conclusions of Seligman’s “Shifting and Incidence” in the light of recent developments in the field of economic analysis.
  15. Discuss the probably future role of “benefit taxation” in the light of prevailing trends of fiscal policy.
  16. Suppose that list prices of new automobiles had been raised by 15% above actual levels prevailing in 1946. What would have been the effect on used car prices?
  17. “There is a disposition on the part of the judiciary to emphasize the compensation of the injured person rather than the punishment of the guilty one.” Outline three major features of the workmen’s compensation laws that justify this generalization. Discuss one important exception.
  18. “The expanding commercial interests of the merchant capitalists of the New England colonies came into conflict with the great capitalistic interest of British West Indian sugar.”….”On the contrary, these two interests were not competitive but essentially complementary.” Write a careful statement of the problem raised by these two conflicting assertions.
  19. Assume that you were a capitalist in 1830 with money to invest in manufacturing either in Great Britain or in the United States. Indicate the considerations (other than patriotism) that you would have weighed in choosing between the two countries for your investment.
  20. What is the “parity” concept as it applies to agricultural prices? Discuss the implications, for economic processes at large, of the application of price parity to agricultural commodities, and give your appraisal of the parity program.
  21. Discuss the changes that have occurred in the United States since the First World War, in the volume and character of production and in productivity. What effect, if any, may these changes be expected to have on the operating characteristics of the American economy and on the problems involved in maintaining full employment?
  22. Explain how statistical evidence may be used in applying tests of significance in economic research. What is the logical justification of such tests? What constitutes “verification” or “proof” in scientific inquiry?
  23. In public utility rate making, how my one distinguish between differences in rates for various types of service that are “discriminatory,” and differences that are “non-discriminatory”?
  24. Distinguish between the capitalization (security structure) of (a) a typical manufacturing corporation, (b) a typical electrical utility company, and (c) a typical railroad company.
  25. Discuss the merits of the contention that, in the determination of the net income of a business enterprise, the allowance for depreciation should be based on the replacement cost of the depreciating asset rather than on original cost.
  26. “Wages are governed by the marginal productivity of labor.” Explain as specifically as possible what this means, in operational terms. Do you consider the statement valid?
  27. Assuming an industry consisting of a limited number of large producers selling a standardized product. Is it possible to construct a theory which will define the level to which price will naturally tend? Indicate one or more answers which have been given to this problem, and problems involved with respect to assumptions used.
  28. In what practical ways did the Wagner Act contribute to the growth of American unions since 1935?
  29. In what respect and why does the Taft Harley Act change the status of foremen in American labor law?

 

Source: Columbia University Library, Manuscript Collections. Albert Gailord Hart Collection. Box 62: “Teaching Materials 4. Columbia University.” Folder: Label “TEACHING Sec 4: Col Univ Ec 103/4 MICRO: EXAMS”.

Image Source: Alma mater before the old library of Columbia University from Historic Preservation Education Foundation.

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Columbia Courses Exam Questions Suggested Reading Syllabus

Columbia. Core Economic Theory. Hart, 1946-47

Up through the academic year 1945-46, Arthur F. Burns offered the first core economic theory course, Economic Analysis (Economics 153-154), in the Columbia graduate program. The following year, 1946-47, the course was taught by the visiting professor of economics (who would be offered and accepted a regular appointment that same year), Albert G. Hart. In 1947-48 Economic Analysis was given a new course number, Economics 103-104, and taught in three sections by Hart, Stigler, Vickrey.
From Hart’s materials for Economic Analysis (1946-1947), I provide below transcriptions of “Introductory Notes” along with the “Prospectus and Background” and the “Outline of Economics 153—154” that includes reading assignments from a 92 page set of typed course notes. Midterms and final semester exams have been appended to this posting.

 

Introductory Notes

Prospectus and Background

Outline of Economics 153-154

Midterm exam, ca. late November 1946

First term final examination, January 21, 1947

Midterm exam, April 14, 1947

Final examination, May 22, 1947

_____________________________

*Economics 153-154—Economic Analysis. 3 points each session. Professor Hart.

M. and W. at 10. 301 Fayerweather.

Character, uses, and limitations of received economic theory. “Equilibrium” of economic units, markets, and clusters of markets; “process analysis.” Translation of policy problems into questions of theory, and of theory problems into questions of fact.

*Designed primarily for candidates for the degree of Doctor of Philosophy in Economics.

 

 

Economics 159—160—Economic Theory. 3 points each session. Mr. Vickrey.

Tu. and Th. at 9. 301 Fayerweather.

A systematic course in neoclassical economics, designed to prepare students for more advanced studies. Emphasis is placed on economic theory as a tool for analyzing economic changes.

[Note that Vickrey was listed in the Bulletin of Information that announced the courses for 1946-47. From the January 1947 examination below it is clear that Stigler taught either an additional section of Economics 153 or he taught Economics 159 instead of Vickrey in the autumn 1946 term. In any event the next year found all three (Hart, Stigler and Vickrey) teaching separate sections of the new core theory course, Economics 103-104.]

 

Source.   Columbia University Bulletin of Information, 46th Series, No. 37 (August 10, 1946). History, Economics, Public Law, Sociology, and Anthropology: Courses offered by the Faculty of Political Science (Winter and Spring Sessions, 1946-1947),p. 40-41.

 

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Economics 153-154
“ECONOMIC ANALYSIS”
Outline

A. G. Hart, October 15, 1946

Economics 153—i
ECONOMIC ANALYSIS

Introductory Notes

The attached outline is aimed to clarify the general structure of the 153-143 course. Note that the topical outline becomes increasingly vague as to reading assignments toward the latter part of the course; this will be filled in later, as I get the feel of the class’s effective reading pace and as I improve my forecast of the time-table.

 

Arrangement of Outline

By way of orientation, the topical outline has been carried clear through to May. The detailed sentence outline, however, is brought only up to the current date; “to be continued”.

The sentence outline is intended to serve as at least a partial substitute for classroom notes. It is based on the notes from which I speak in class, and aims to carry the main thread of the argument. My own experience as a graduate student was that trying to get detailed notes interfered with thinking things through in classes; and I want to put the class in a position where class notes can be somewhat sketchy. If facilities can be managed, I hope at least part of the time to be able to give out installments of the sentence outline in advance, to maximize the extent to which I can accept interruptions in class without losing the thread.

From time to time there will be written exercises, supplementary reading suggestions, etc.

 

Why This Sequence of Topics?

The organization of the material is intended to minimize the chief normal learning-difficulty of economic theory, which arises from having to carry seemingly unrelated pieces of analysis some time in separate packages before they fit together. I am trying by my first and second “approximations” to keep the various special topics continuously in perspective; to fit in each piece almost as soon as it is developed; and to avoid carrying forward excess baggage in the way of gadgets which later prove useless.

The “first and second approximations” should not be identified with either “statics and dynamics” or “perfect and imperfect competition”. In my view, the best stopping-place for a first approximation is a good way short of a full account of “statics”; in particular, it leaves out a good many institutional insights which can be handled after a fashion in “static” terms. The “second approximation”, needless to say, will stop a good deal short of a well-rounded account of “economic dynamics”—for the very good reason that a satisfactory “dynamics” is not yet worked out. As to imperfect competition, some elements of the subject go into the first approximation; and a good many, to my taste, classify as useless gadgets and go out altogether.

 

Acquaintance with Authors

It is not a primary objective of the course to acquaint students with authors. But part of the process of learning theoretical analysis is to observe the theoretical frameworks set up by a few of the masters. The reading list will give the elements of the point of view of Marshall, Keynes, Hicks, Stigler or Boulding, and one aspect of the thinking of Lange; Fisher, Knight, Pigou and J. M. Clark will be represented only by fragments, and many other important writers not at all. The foregoing constitutes a minimum list of theorists whose mark should be represented in an economist’s bookshelf.

 

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PROSPECTUS AND BACKGROUND

 

I. Conceptions of the Course. I propose to treat economic theory not as an auxiliary to the economist’s work (like statistical method), but as the core of economics.

A. It is tempting to think of economics as composed of two classes of sub-fields: subject-matter fields (money, international trade, labor, etc.) relating to particular sets of institutions and their working: tools (theory, statistics, history, perhaps law).
B. Theory has a claim to be the distinctive feature by which economics can be identified.
C. In essence, theory is a systematic check list of questions: an economist is one who knows the questions.
D. The course aims at coverage (an “advanced principles”) rather than at maximum proficiency on a small number of topics.
E. I refuse to accept the view that theoretical and institutional approaches are competitive:

1. Neither type of knowledge of economics makes the other dispensable.
2. Each type of knowledge contributes to the applicability of the other.

 

II. Content of Economic Theory. Economic theory is a way of dealing with economic quantities; but it deals also with people and social groups.

A. Considering that economics purports to be a social science, it is astounding how far it turns out to operate by manipulation of abstract quantitative symbols.
B. The human side of economics comes in through the choice of hypotheses; but the central questions economics asks about people are quantitative.
C. In general, economic theory deals with choice among alternatives; with substitution of one means to an end for others; and with compromises among partially conflicting goals by maximizing something. It has to criticize goals themselves, with an eye on the degree to which goals are set to make the game interesting.
D. The quantities with which economics deals are in the first instance events (final services, productive services, transactions). “Goods” turn out to be “bundles of services”: wealth has the dimensions rate-of-service X time.

 

III. Plan of the Course. The course is planned as a “spiral” progression across a wide range of topics:

A. Its first stage is an analysis of national income and product, following Hicks.
B. Beyond that stage, analysis will run in terms of:

1. The economic unit (firm or household)
2. Markets as inter-relations of units
3. Unemployment and fluctuations
4. “Welfare economics”

C. In the second stage, these four problems will be considered in “Statics”—i.e., they are carried up to the point at which anticipations and uncertainty take on importance, but not further. The idea is to postpone refinement of analysis till after looking at the theorist’s concept of a “system of economics”.
D. In the third stage, elements of uncertainty will be brought to the surface, and the more general theoretical consequences of institutionalist insights not recognized in the second stage will be drawn.
E. In view of numbers, class meetings cannot be conducted primarily as discussions; but I shall welcome questions and argument, and hope to provide much of the benefit of discussion via written assignments and conferences. Student reliance must be largely on learning cooperatively.

IV. Economics as a Field. The field of economics deserves the best of human intelligence; and the profession is one in which its members can take pride.

A. The critical importance of economics is visible in the policy field: whether or not our society cracks up depends largely on whether a minimum of wisdom (or good luck) guides our economic policy.
B. Waiving the question whether economics is “a science”, it is a field in which it takes a great deal of mental power, and a heroic effort to correct biases, to make major contributions.
C. Economics has its weaknesses and its record of failures (though nothing like as black a record as the public may think); but its professional standards deserve respect, and its prospects seem hopeful.

 

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AGH—10/9/46

OUTLINE FOR ECONOMICS 153-154

[PART I]

I. Introduction. (Sept. 30-Oct. 2: 2 hours)

Required:

Hicks and Hart, Social Framework of American Economy, Chapter 1

Suggested Supplements:

Stigler, Economics of Price, Chapter 1

 

II. The Economic Process. (National Income and Output: Oct. 7, 9, 16: 3 hours)

Required:

Hicks and Hart, Parts I and IV; over II-III lightly.

Suggested Supplements:

F. H. Knight, teaching materials reproduced from Social Science II Syllabus (Univ. of Chicago Bookstore)

[PART II]

III. The Economic Unit: schematic view

A. The Firm and Costs (Oct. 18, 23, 25, perhaps 30: 3 to 1 hours hours)

Required:

Option:
Stigler, Chapters 7-9; 1st Section of Chapter 10 or
Boulding, Economic Analysis, Chapters 22-23, followed by 21

B. The Household (perhaps October 30; Nov. 4, 6, 11, 13,18, perhaps 20: 5 to 7 hours)

Required:

Option:
Stigler, Chapter V, or Boulding, chapters 29-30,
Hicks, Value and Capital, Chapters I-II
Marshall, Book III
Hicks, Note to Chapter II; Chapter III

 

IV. Inter-Relations of Units: “Markets”, First Approximation

A. Introduction: Interplay of units; aggregation; clearing the market (Oct. 30: 1 hour)

B. Monopoly: One unit versus many. (Nov. 4, 6

Required: Cournot, Chapter V

C. Perfect Competition on inter-related markets: factor markets; “general equilibrium”. (Nov. 18, 20, 25, 27: 3-4 hours)

Required: Cournot, Chapter V

D. Monopoly: One unit versus many. (Nov. 4, 6

Required:

Stigler, Chapter 10
Cassel, Theory of Social Economy
Hicks, Value and Capital, Part II (Chapters IV-VIII)

E. Variations on a Classical Theme: monopolistic competition (Dec. 2, 4, 9, 11: 4 hours)

Required:

Stigler, Part III (Chapters 11-15) (or alternative to be assigned)

Reserve of time: December 16, 18: 2 hours.

F. Inter-temporal and inter-spacial markets. (Jan. 6, 8, 13: 3 hours)

Required:

I. Fisher, or alternative to be assigned.
[Assignment: Irving Fisher, Theory of Interest, pp. 99-149, 178-230 or Rate of Interest, pp. 117-177. If possible, also Theory of Interest,pp. 231-315 or Rate of Interest, pp. 374-415 Cf. Stigler, Ch. 17, and Boulding, Ch. 33.]

Reserve of time: January 15: 1 hour.

 

V. Welfare Economics—First Approximation: (Feb. 3, 5, 10, 12: about 4 hours)

Losses through unemployment and through inefficient use of employed resources; equalization of returns at the margin as welfare criterion; system-wide external economies; inequality and incentives; substantial identity of welfare economics for capitalist and socialist economies.

Readings: Lange on Socialism; Lerner; Robbins-Kaldor-Hicks journal discussion; Simons.

[Marshall, Principles, Book V, Ch. XIII (pp. 462-476
A.P. Lerner, Economics of Control, pp. 1-105
O. Lange, Economics of Socialism (with Lippincott and Taylor; Lange essay) or “On the Economic Theory of Socialism”, Rev. Ec. Studies, Oct. 1936, pp. 53-71, and Feb., 1937, pp. 123-142
H. C. Simons, Positive Program for Laissez-Faire
L. Robbins, “Interpersonal Comparisons”, Econ. Jour., Dec., 1938, pp. 635-641
N. Kaldor, “Welfare Propositions” Ibid., Sept., 1939, pp. 549-552
D. H. Robertson, “Wage Grumbles” in Readings in Theory of Income Distribution, pp. 221-236]

 

VI. Unemployment Fluctuations—First Approximation (Feb. 17, 19, 21, 26: about 4 hours)

Effects of general inadequacy of demand with limited price flexibility; “propensities” to save, invest, as influenced by government budgets, foreign trade, money, etc.; basis for expecting fluctuations in demand; the prescription of “Flexibility”.

 

Readings: Keynes, Lerner, NPA, A. F. Burns

[A. P. Lerner, Economics of Control, Chapters 22-23 (pp. 271-301)
Gardiner C. Means, Monetary Theory of Employment, Chapters V-VI (mimeographs; on reserve)
National Planning Association, National Budgets for Full Employment (pamphlet, Washington, 1945)

Additional stuff if time:
J. M. Keynes, General Theory of Employment, Interest and Money, Books III-IV (pp. 89-254)
A. F. Burns, Economic Research and the Keynesian Thinking of Our Times (New York, National Bureau of Economic Research, 1946) pp. 3-29
Oscar Lange, Price Flexibility and Employment, Bloomington, Indiana, 1944

(following mentioned with regard to use of numerical Keynesian models for forecasting)

Nicholas Kaldor in Beveridge’s Full Employment in a Free Society, Smithies and Mosak in Econometrica, for critical discussion cf., the 1945-1946 volumes of American Economic Review]

 

PART III: FIRST STEPS TOWARD REALISM

VII. The Unit—Second Approximation (March 3, 5, 10, 12, 17, 19: about 6 hours)

Imperfect access to markets; anticipations and planning; uncertainty, flexibility and liquidity; qualifications to first approximation arising from fact unit is social group; “just prices”, confederations of units and price rigidity.

Readings: Knight, Hart, Keynes, Hicks, Berle and Means;_______________]

[Assignment:
Hicks, Value and Capital, Chapters IX-X; XIV-XVIII (pp. 113-140, 171-236)
Hart, Anticipations, Uncertainty and Dynamic Planning (Chicago, 1940)
Means, Monetary Theory of Employment (mimeo) Chapter V.
Ad lib., A. A. Berle and G. C. Means, Modern Corporation and Private Property]

 

VIII. Markets—Second Approximation (March 24, 26; Apr. 7, 9: about 4 hours)

Gradations of price rigidity; imperfect clearing of markets; peculiarities of markets for productive services, perishables and durables; consistency, and inconsistency of expectations and locus of surprises; unintended saving and investment; differences of opinion and speculation.

Readings: Lindahl, Hicks, Keynes;_________________________

[Assignment:
Means, Monetary Theory of Employment (mimeo), Chapter VI.
E. Lindahl, Money and Capital, pp. 21-69
Mentioned with respect to “locus of surprises”: Hart, AER, Supplement, March 1938 and Rev. Econ. Stat., May, 1937 “of a sketch by Lindahl mimeographed in 1934).]

 

IX. Unemployment and Fluctuations—Second Approximation (April 16, 18, 23, 25: about 1 hour)

Uses and limitations of “modes”; uncertainty and interest; “stagnations”; inevitability of fluctuations in major comments; the policy issues.

Readings: To be worked out.

[For details and bibliography see National Planning Association, National Budgets for Full Employment and Hart and Mosak in AER, 1945-46.]

 

X. Welfare Economics—Second Approximation (May 5, 7, 12, 14: about 4 hours)

The economists’ struggle against proposals to enable groups to “earn” more by producing less; “social justice”; economic warfare within the nation and conditions of disarmament; adaptation of economic policy to social structure; role of reason in contemporary society.

Readings: To be worked out.

Reserve of time: Nil! Whence it becomes urgent to jam V into January if possible, pushing all of IV back before Christmas. By bet is that this can’t be done, however, and that in consequence Part III (especially VIII) must be skimped.

 

____________________________________

 

ECONOMICS 153

[Undated but would fit into syllabus between Sections III and IV in November 1946]

Answer 4 questions:

1) What is Marshall’s theory of demand? In what direction has this theory been extended by modern research? What problems in demand theory deserve, in your judgment, the greatest attention in the years ahead? Why?

2) What are indifference curves? What can they contribute to the understanding of consumers’ behavior? To the understanding of producers’ behavior? To pure economic theory?

3) What does a demand curve of unitary elasticity mean? What does an average cost curve of unitary elasticity mean? Is the Marshallian demand curve equivalent to an average revenue curve, an average cost curve, or a marginal revenue curve? Why? Assuming a linear demand curve, indicate the elasticity of demand at ‘critical points’ on this curve. Will farmers benefit more from a short crop than from a bumper crop? Is there any conflict in this respect between the interests of farmers as individuals and as a class?

4)    (a) What, briefly, does the principle of diminishing return mean to Lucretius, Mill, Marshall, Stigler?

(b) Over what range of industry does ‘the’ principle of diminishing return apply? over what range of factors? over what range of output?

(c) What is ‘the’ principle of increasing return and how is it related to ‘the’ principle of diminishing return?

5) (a) Suppose that two factors of production are used in producing a certain commodity, one factor being fixed and the other variable. How much of the variable factor will a producer seeking the least-cost combination use, if the variable factor is free? If the fixed factor is free? if neither factor is free? if the price of both factors is doubled? if the price of the fixed factor is doubled while the price of the variable factor remains unchanged? Explain your answers.

(b) Suppose that both factors may be varied freely and that each costs money. How much of each factor will the producer use? Why?

(c) Same as (b), but suppose the number of factors is ten instead of two.

 

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ECONOMICS 153-159

Composite Final Examination
January 21, 1947
306 Mines
1:10—4:00

Answer enough questions to add up to 120 “minutes”. Students in Stigler’s section must include question 1. Do not answer both 1 and 6, nor both 1 and 9.

1. (60 minutes) There are 100 each of A and B farms in a competitive economy. The product schedules of one farm are

Total Product
Number of Laborers A Farm B Farm
1 40 40
2 90 80
3 140 115
4 185 145
5 225 170
6 260 190
7 290 205
8 315 215

i. Determine wages and rents on both types of farms when there are 240 laborers.
ii. Determine wages and rents on both types of farms when there are 900 laborers.
iii. And 910 laborers, no laborer divisible.
iv. With 900 laborers, those on the A farms organize and succeed in setting a wage rate of 40.
v. And then they raise the standard rate to 47.
vi. Congress, dominated by radicals, levies a 20 per cent tax on wages. There are 900 laborers, and full competition.

 

2. (30 minutes) Explain as briefly as possible each of the following statements.

i. For a monopolist, marginal cost is greater than marginal revenue at any output at which the demand is inelastic.
ii. Demand has no influence on the price of the product of a competitive industry that uses no specialized resources.
iii. The elasticity of a straight line demand curve varies from point to point.
iv. The imposition of a license fee does not affect short-run normal price.

 

3. (30 minutes) Write a short essay on utility theory, in one of its variants, taking into account:

i. The need for “going behind” the demand curve to explain observable behavior.
ii. The empirical evidence that supports the utility theory.
iii. The uses, if any, to which the utility theory can be put.

 

4. (15 minutes) Define each of the following concepts and write a brief paragraph on its place in contemporary economic theory:

a) Opportunity cost
b) Economic rent
c) Net profit
d) Consumer’s surplus
e) Marshallian long-run
f) Quasi-rent
g) Factor of production

5. (15 minutes) Explain the difference between the “marginal utility” and “indifference curve” approaches to the theory of consumption, and evaluate the advantages attributed to the latter.

6. (30 minutes) Explain the meaning and implications of “constant returns to scale”, Under constant returns to scale, what is the relation between the amounts of the factors used, their respective marginal productivities, and the total product.
Illustrate the meaning of increasing, constant, diminishing and negative returns to one factor–amounts of other factor being held constant—within the framework of constant returns to scale. In a range where there are increasing returns to one factor, what is implied about returns to other factors?

7. (15 minutes) Give an exposition, illustrated as well as decorated by diagrams, of one of the standard special cases of monopolistic competition theory—such as (a) a price leader “holding up the umbrella” for a fringe of small “independents”; (b) product differentiation with free entry; (c) substitution of selling-cost competition for price competition; (d) cartel with enforceable output quotas but open membership; (e) spatial competition with free entry but tabu on price competition (gasoline stations with fixed per-gallon markup).

8. (15 minutes) Do the same for one other of these cases. DO NOT TREAT MORE THAN TWO ALTOGETHER.

9. (30 minutes) Suppose a perfectly competitive industry, with long-run constant costs, is in long-run equilibrium. Trace adjustment to a new short-run and long-run equilibrium when a tax per unit of output is put into effect unexpectedly but permanently.
What difference will it make if the tax is per unit of input instead (the input affected accounting for, say, ¼ the industry’s costs)?
Where the tax is per unit of output, what difference will it make if the industry is subject to long-run increasing costs?

10. (30 minutes) Suppose a household has its “income” given in kind—in a “commodity X” rather than in “money”. Draw up a diagram with “money” graphed vertically and “X” horizontally, and trace out the loci of accessible combinations of X and money (“opportunity paths” alias “budget lines”) for several different prices of X.
Assuming both X and money to be necessities (in the sense that the household will always prefer a some-of-each combination to any alternative comprising some of one and none of the other), is it possible to draw on this diagram a field of indifference curves so shaped that the points of maximum attainable satisfaction along these opportunity paths will show the household retaining more X (“supplying” less X) at higher prices than at lower prices of X? If so, draw such a field of curves; if not, show geometrically why it cannot be done.
Relate this analysis to the supply by households of agricultural commodities for which overhead costs overshadow variable costs (apples?). To the supply of labor (regarding X as leisure, of which less is retained as more time is devoted to work).

11. (15 minutes) Is the “law of diminishing returns”, construed in terms of variable proportions of inputs, a “law” of engineering, social relations, or individual psychology? (or is it strictly a parlor accomplishment for economists?) Justify your answer.

12. (30 minutes) (a) Economists generally accept a strong presumption that demand curves have a “negative slope”: i.e., that increasing a price reduces the amount demanded. What are the main pieces of evidence by which this presumption can be supported? Do you consider the evidence adequate?
(b) On the supply side, economists feel a much weaker presumption that increasing a price will increase the amount supplied, particularly where many of the suppliers have only one type of commodity (or service) to sell. What are the grounds for this difference in the strength of the presumption?

13. (30 minutes) Describe the Walrasian equations and discuss their significance in relation to the determinateness of the general equilibrium of a simple exchange economy.

14. (15 minutes) Discuss bilateral monopoly (monopolistic seller facing monopsonistic buyer) in relation to the efficiency of the bargaining and exchange process, the determinacy of the general equilibrium, and factors affecting the result.

15. (15 minutes) Distinguish between impatience and marginal time preference as a basis for interest. What other factors besides interest affect the supply of savings and capital?

16. (30 minutes) The following table shows the estimated yearly traffic over a proposed bridge at various rates of toll:

Toll Cars per year
$2.00 None
1.50 1,000,000
1.00 2,000,000
.50 3,000,000
.00 4,000,000

If the bridge can be built at an annual cost of $3,500,000 for interest, depreciation, and repairs, would it be worth while, from the point of view of the community as a whole, (a) if no toll is to be charged; (b) if a toll of $1 is to be charged, the balance of the cost coming from taxes. Can such a bridge be undertaken privately? If so, how?

If the bridge costs only $2,000,000 and a private company undertakes it, charging $1 toll, what is the net social loss as compared with operating without a toll? If the cost is $1,500,000 and the necessary toll is 50 cents? Discuss the qualifications, if any, to be attached to your conclusions. Note: Consider the demand curve to be continuous, not a series of steps; i.e., at a toll of $.10, traffic is 3,800,000, at $.20, 3,600,000, etc. Ignore wear & tear on bridge.

 

____________________________________

 

Economics 154
Hour Examination
April 14, 1947

  1. (30 minutes) Write a brief essay on “external economies and diseconomies of large scale production”, touching upon:

a) Economies external respectively to firm and to industry
b) Distinction between external economies operating via changes in production functions and via price changes
c) Effects analogous to external economies in the affairs of households
d) The Marshall-Pigou tax and subsidy proposal

  1. (20 minutes) Comment on the sense and degree in which “welfare economics” is handicapped by limitations on the “interpersonal comparison of utilities”.

 

____________________________________

 

Final Examination
Economics 151 and 160
May 22, 1947

Answer one question in each group and four questions in all.

Group I

1. Explain the following propositions:

a. If the proportion in which two factors of production are used in producing a commodity in a certain industry is not alterable, the industry’s demand for factor A will be less elastic (1) the less elastic is the demand for the commodity, (2) the smaller the proportion of total costs that factor A accounts for, and (3) the less elastic is the supply of factor B.

b. If the proportions in which the two factors are used can be altered, the demand for A will be less elastic the less easily it can be substituted for factor B.

2. What reasons are advanced by Adam Smith and J. S. Mill to explain persistent differences between the wages of labor in different occupations? Under what conditions would demand be important?

3. What deviations from the “social optimum” of welfare economics result from monopolistic competition? Discuss (a) the use of existing resources; (b) investment; (c) income distribution.

Group II

4. Explain two of the following propositions and indicate how imperfections in the loan market affect their validity.

a. To maximize their satisfaction from income, individuals borrow or lend in a volume that equates their marginal rates of time preference with the market rate of interest.
b. It pays investors to undertake all ventures in which the rate of return over cost (internal rate) is as high as the market rate of interest.
c. Current rates of interest for loans of different maturity imply specifiable expectations of rates of interest to rule in the future.

5. “For the individual, the rate of interest will determine the choice among his optional income streams (investment opportunities), but, for society as a whole, the order of cause and effect is reversed. The rate of interest will be influenced by the range of options open to choice.”

6. Which of the following statements about interest have been supported by which of the economists listed below, and which of the statements have not been supported?

a. Interest equates the supply and demand for capital.
b. Interest reflects the superiority of roundabout methods of production.
c. Interest represents the rate at which the total stock of capital in the community increases.
d. The rate of interest corresponds to the rate of decline of the marginal productivity of capital.
e. Interest is the reward for the sacrifice of liquidity.
f. Savings tend towards the point at which interest equals the marginal propensity to consume.
g. Interest arises from the exploitation of labor by capital.
h. Interest is a monopoly profit exacted by bankers through the exercise of the sovereign power to coin money.

Böhm-Bawerk, J. B. Clark, Commons, Fisher, Keynes, Marx, Nobody, Soddy, Veblen.

Explain the reasoning behind one of the statements.

7. What are the relations between the spot price of a commodity (cotton), the spot price expected to rule six months from now, and the (“futures”) price at which a contract will be entered into now for execution six months from now? Explain with allowance for uncertainty.

 

Group III

8. “…it is not the rate of interest, but the level of incomes which ensures equality between saving and investment.” Explain.

9. Expound and criticize Means’s doctrine of price rigidity as cause of unemployment.

10. Comment on F. H. Knight’s view that “in the absence of uncertainty the velocity of circulation of money would be infinite.” How far and what sense does uncertainty explain the “transactions, precautionary and speculative motives” to hold money?

 

Source: Columbia University Libraries, Manuscript Collections. Albert Gailord Hart Collection, Box 62, Folder “Sec (4) Ec 153-154 Columbia = 103-104 Micro, grads”.

Image Source:  Obituary in The Columbia Spectator, October 3, 1997.

Categories
Exam Questions Harvard

Harvard. Final Examination Questions. Economics Courses, 1912-13

 

 

For the academic years 1912-13 through 1915-16 there are complete (or at least nearly complete) sets of examinations for many departments, including economics available at hathitrust.org. In this posting we have final examinations for all economics courses but three for the 1912-13 academic year. Since courses are only identified in these collections by number, I have provided the course titles, instructors’ names and course registration figures available in the annual Harvard Presidential Report for that academic year.

The three courses for which no final examination questions (perhaps the grade was not even determined by examination) were:

Economics 13. Statistics. Theory, method, and practice. Professor Ripley. (6 Graduates, 1 Senior, 3 Radcliffe: Total 10)

Economics 24. Topics in the Economic History of the Nineteenth Century. Professor Gay. (4 Graduates, 1 Senior: Total 5)

Economics 33 1hf. Tariff Problems in the United States. Professor Taussig. (5 Graduates, 3 Seniors: Total 8)

FINAL EXAMINATIONS
1912-13

Economics 1. Principles of Economics
Economics 2a lhf. European Industry and Commerce in the Nineteenth Century
Economics 2b 2hf. Economic and Financial History of the United States
Economics 3. Money, Banking, and Commercial Crises
Economics 4a 1hf. Economics of Transportation
Economics 4b 2hf. Economics of Corporations
Economics 5. Public Finance, including the Theory and Methods of Taxation
Economics 6a lhf. Trade-Unionism and Allied Problems
Economics 6b 2hf. The Labor Movement in Europe
Economics 7. Theories of Distribution and Distributive Justice
Economics 8. Principles of Sociology
Economics 9. Principles of Accounting.
Economics 11. Economic Theory
Economics 12 lhf. Scope and Methods of Economic Investigation
Economics 14. History and Literature of Economics to the year 1848
Economics 16. The History of Modern Socialism
Economics 23. Economic History of Europe to the Middle of the Eighteenth Century
Economics 31. Public Finance
Economics 32 2hf. Economics of Agriculture, with special reference to American conditions

 

________________________________________

Economics 1. Principles of Economics.

Professor Taussig and Dr. E. E. Day, assisted by Messrs. Heilman, Jones, Burbank, Crosgrave, and Eldred.
1 Graduate, 21 Seniors, 93 Juniors, 307 Sophomores, 21 Freshmen, 38 Other. Total 481.

 

[p. 38-39]

ECONOMICS 1

  1. To what extent and in what manner do the following contribute to the formation of capital: (a) a government loan; (b) the stock exchange; (c) commercial banks; (d) the corporate form of business organization?
  1. Explain “margin of cultivation.” Distinguish between the intensive margin of cultivation and the extensive margin of cultivation. What is the relation between (a) the margin of cultivation in agriculture and the price of a bushel of wheat; (b) the margin in gold mining and the value of an ounce of gold?
  1. Assume that a monopoly produces a commodity under conditions of constant cost. What determines the extent to which the monopoly price will be above the price which competition, if existent, would establish? Illustrate by diagram.
  1. The rentals from a New York office building amount to $50,000 a year. The building is worth $200,000. To provide for insurance, depreciation and such fixed items, $10,000 is expended annually. The current rate of interest upon investments of equal security is 5%. What is the value of the land?
  1. What is “dumping “? What induces it? To what extent is it dependent upon (a) monopoly conditions; (b) tariff barriers?
  1. Explain briefly why (a) the rates of wages are generally higher in the United States than in Germany; (b) higher for plumbers than for unskilled laborers; (c) for domestic servants than for women employed in shops and factories. Suppose a socialist community apportioning wages on the basis of equality of sacrifice: would these differences persist?
  1. How are the wages and the number employed within a particular industry affected, immediately and ultimately, by the invention of labor-saving devices in that industry?
  1. Explain: (a) railroad rebates; (b) over-capitalization; (c) public service industries; (d) “reasonable restraint of trade”; (e) stoppage at the source.

 

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Economics 2a lhf. European Industry and Commerce in the Nineteenth Century.
Professor Gay, assisted by Dr. M. T. Copeland.
16 Graduates, 14 Seniors, 44 Juniors, 17 Sophomores, 3 Freshmen, 5 Other. Total 99.

 

[p. 39-40]

ECONOMICS 2a1

  1. “The effect of Peel’s measures of 1842-1845 was to demonstrate how much the trade and industry of the country might be encouraged by the readjustment of fiscal burdens.” Explain.
    Is a similar readjustment needed in England at the present time? Why or why not?
  1. (a) How was the capital for the construction of railroads prior to 1870 obtained in the different European countries? Why?
    (b) Why was the railroad policy of Prussia modified after 1870? With what results?
  1. Compare the organization of the wool manufacturing industries in England, Germany, and France at the present time, explaining to what the differences are due. How far are these differences typical?
  1. Compare the English and Belgian methods of relieving the recent agricultural depression.
  1. In which industries have Kartells been formed in Germany? Why? Compare with the movement for combination in England.
  1. Explain the statement in regard to English agriculture that “after the middle of the eighteenth century the two revolutions, the industrial and the agricultural, which are indeed only manifestations of the same scientific and commercial spirit, go hand in hand and supplement one another.” Does this statement apply also to Germany? Why or why not?
  1. Discuss briefly —

(a) English ” Friendly Societies.”
(b) Pitt’s Sinking Fund.
(c) Zollverein.
(d) French shipping subsidies.
(e) Charter and line traffic.

 

________________________________________

 

Economics 2b 2hf. Economic and Financial History of the United States.
Professor Gay, assisted by Dr. M. T. Copeland.
18 Graduates, 22 Seniors, 50 Juniors, 27 Sophomores, 1 Freshman, 6 Other. Total 124.

 

 

[p. 40-1]

ECONOMICS 2b

  1. “The most important feature of life in a newly settled community is its commercial connection with the rest of the world.” Why? How is this illustrated (a) by the history of the American colonies and (b) by the history of the West?
  1. What were the causes for the decline of the American merchant marine? What attempts have been made to assist its recovery? With what results?
  1. Compare in its main features the economic history of the decade 1830-40 with that of the decade 1880-90.
  1. Compare the conditions which stimulated industrial combinations in the ’90’s with those which resulted in railroad combinations in the ’70’s.
  1. Within the last twelve months the New England Cotton Yarn Company, the U. S. Finishing Company, and the International Cotton Mills Corporation have each undergone reorganization. What was the earlier history of these companies and how far did that history foreshadow the necessity for such reorganizations?
  1. If you were to establish a mill for manufacturing silk goods at the present time, how would the conditions which you would meet in that industry differ from those which confronted a silk manufacturer forty or forty-five years ago? Why have these changes taken place? How far are they typical of the general industrial development of the United States during this period?
  1. (a) Comment on the following statement, which was made in a speech in Congress in 1846. “It is a protective tariff which gives to American industry the only effectual guaranty that it will not be brought down to a level with the degraded labor of Europe. It furnishes the only security that our standard of wages is not to be measured by the cost of production in those countries where the life of the laborer is but an incessant struggle for bread.”
    (b) Judging from the history of the years 1893-1900, as well as from present conditions, is the present year more or less opportune than 1909 for a downward revision of the tariff? Why?

 

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Economics 3. Money, Banking, and Commercial Crises.
Dr. E. E. Day, assisted by Messrs. Ise and F. E. Richter.
3 Graduates, 31 Seniors, 67 Juniors, 16 Sophomores, 1 Freshman, 1 Other. Total 119.

 

[p. 41-42]

ECONOMICS 3

  1. What factors favored the monetary rehabilitation of silver in the United States during the 70’s? Which of these factors are still operative? Explain the disappearance of the others.
  1. What banking abuses were most common in the United States early in the nineteenth century? When and how, if at all, have these since been eliminated?
  1. What is the relation between the Bank of England rate and the London market rate of discount when (a) funds are abundant; (b) funds are relatively scarce? In what ways does varying the Bank rate accomplish the protection of the English banking reserves?
  1. What is meant by a free gold market? Are the following such: London; Paris; Berlin; New York? In each case, why or why not?
  1. How will the rate of sterling exchange in New York be affected by: (a) a crop failure in the United States; (b) hoarding of specie in Europe; (c) a slump on the New York Stock Exchange; (d) a banking panic in this country?
  1. “The call-loan market . . . furnishes to the banks of the country under the present organization of banking, their only means of mobilizing their reserves, of liquifying their assets, and of securing flexibility in their lending power.” Explain and criticize. How, if at all, should this feature of our system be changed?
  1. In the equation of exchange given by Professor Fisher, what is the relation of M, M’, V, and T (a) during a period of rising prices; (b) during a period of settled prices?
  1. Describe the crisis of 1873 with reference to: (a) its general antecedents; (b) its more important causes in the United States; (c) its final outbreak in this country; (d) the territorial extent of the reaction; (e) the severity and duration of the subsequent depression.

 

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Economics 4a 1hf. Economics of Transportation.
Professor Ripley, assisted by Mr. Crosgrave.
6 Graduates, 2 G.B., 36 Seniors, 85 Juniors, 24 Sophomores, 3 Other. Total 156.

 

[p. 42-3]

ECONOMICS 4a

  1. Compare the lease with stock ownership as a means of combination, stating the advantages and disadvantages of each.
  1. Show how recent interpretation of the Federal law may conceivably affect the status of railway traffic agreements.
  1. State very briefly the point raised in the following cases: —

(a) Portland Gateway.
(b) Illinois Central car supply.
(c) Alabama Midland (Troy).
(d) Orange Routing.

  1. Have any of the above points been since corrected by legislation; if so in what manner?
  1. Give reasons for the following differences in net capitalization per mile of line:

Union Pacific $65,000         Reading $170,000
Pennsylvania    86,000        Erie            170,000

  1. What particular circumstance materially affects the success of Government ownership and operation:

(a) In Germany?
(b) In Italy?
(c) In Switzerland?

  1. What is the present attitude of the Federal courts toward the proper basis to be used in the determination of reasonable rates?
  1. How effective practically has been the ” Commodity Clause” of the law of 1906?
  1. To whom properly belongs the surplus earnings of a railroad over and above a rate of return requisite to provide an adequate supply of new capital for future development? State your own view, but set forth your reasons fully.

 

________________________________________

 

 

Economics 4b 2hf. Economics of Corporations.
Professor Ripley, assisted by Mr. Crosgrave.
6 Graduates, 20 Seniors, 86 Juniors, 15 Sophomores, 3 Other. Total 130.

 

 

[p. 43-4]

ECONOMICS 4b

  1. Why was the dissolution of the “Tobacco Trust” more difficult than that of the Standard Oil Company? Explain fully.
  1. Indicate certain differences in the eye of the law between monopolization and restraint of trade.
  1. Herewith are two balance sheets of companies A and B respectively. Comment upon them, contrasting one with the other. Which apparently denotes the greater financial stability?
Co. A
Assets Liabilities
Plant $3,500,000 Preferred Stock $5,000,000
Merchandise 1,800,000 Common Stock 15,000,000
Bills Receivable 700,000 Accounts Payable 600,000
Cash 1,400,000
Good-will and Patents 13,200,000
$20,600,000 $20,600,000
 

Co. B
Assets Liabilities
Factories $15,000,000 Capital Stock $65,000,000
Securities owned 18,000,000 Debentures 15,000,000
Merchandise 20,000,000 Surplus 3,000,001
Accounts Receivable 30,000,000
Franchises and Good-will 1
$83,000,001 $83,000,001

 

  1. Name, with briefest possible description in each case, and in order of seriousness, at least five distinct forms of unfair competition in trade.
  1. Do all the foregoing forms of unfair competition affect thgeneral public as well as direct competitors? Does this factor apparently influence the attitude of the courts?
  1. What was the essence of the U. S. Steel Bond Conversion plan? What became of it?
  1. Contrast administrative and judicial forms of controlling monopoly, pointing out the merits of each.
  1. Outline the plan of reorganization of the National Cordage Company. Was it typical of industrial reorganizations in general?
  1. What are the three leading objections to the so-called “holding company “?
  1. Outline what most appeals to you as a feasible plan for dealing with the existing trust problem. State concisely in definite propositions covering all points at issue.

 

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Economics 5. Public Finance, including the Theory and Methods of Taxation.
Professor Bullock.
6 Seniors, 14 Juniors, 4 Sophomores, 1 Other. Total 25.

 

[p. 44]

ECONOMICS 5

  1. Explain and discuss critically the methods employed in the taxation of land in Germany, France, Great Britain, Australia, and the United States.
  1. Compare the general property tax with the general income tax, considering both the theory and the practical operation of these taxes.
  1. Compare the French, Prussian, and British systems of direct taxation.
  1. Compare the British system of indirect taxation with those of France and the United States.
  1. Discuss the taxation of mortgages in the United States.
  1. What changes in the taxation of personal property have recently occurred in the United States?
  1. Compare the British, Prussian, and Italian income taxes. .
  1. Outline what you consider a satisfactory theory of the just apportionment of public charges.

 

________________________________________

 

Economics 6a lhf. Trade-Unionism and Allied Problems.
Professor Ripley, assisted by Mr. Crosgrave.
3 Graduates, 44 Seniors, 19 Juniors, 4 Sophomores, 2 Other. Total 72.

 

[p. 45]

ECONOMICS 6a

Answer the first five briefly

  1. What is sabotage?
  1. What is the ” extended ” closed shop?
  1. What is the principal practical difficulty in the “general strike”?
  1. Is it met by the adoption of any positive policy in France by the “syndicates”?
  1. In the syndicalist programme what is to be the unit in the reorganized state?
  1. Contrast collective bargaining under sanction of the law with its adoption by private arrangement; (a) from the point of view of advantage to the employer; (b) from that of the workman.
  1. What are the four main features of the New Zealand legislation. (Each in a sentence.)
  1. What is the principal demonstrated weakness in the above legislation?
  1. What are three disabilities of the individual workmen in negotiating a wage contract?
  1. Wages for women in domestic service and in manufactures seem out of line with one another. What main difference helps to explain this?
  1. What is the present condition of affairs respecting the closed shop in the United States? Outline the course of events for two decades.
  1. How does the law of conspiracy enter into the decision by courts in labor disputes? How has Great Britain settled it?

 

________________________________________

 

Economics 6b 2hf. The Labor Movement in Europe.
Asst. Professor Rappard.
5 Graduates, 12 Seniors, 9 Juniors, 1 Sophomore, 3 Other. Total 30.

 

[p. 45-6]

ECONOMICS 6b

Arrange answers in order of questions. Students who wrote theses will omit the first three questions.

  1. Enumerate five of the effects which Engels says the Industrial Revolution had on the manufacturing population of England. What were Engel’s chief sources of information?
  1. How does Sombart distinguish between (a) Rational Socialism (Utopian Socialism and Anarchism) and (b) Historical Socialism?
  1. What effect, according to Marx, does machinery have

(a) Upon real wages?
(b) Upon nominal wages?
(c) Upon “relative surplus-value”?
(d) Upon “absolute surplus-value”?

  1. Why is it customary to mention the English enclosure movement in dealing with the history of labor in Europe in the 19th century?
  1. What were the historical relations between the doctrines of Godwin, Malthus and Darwin?
  1. What was Chartism? Saint-Simonism? Which was more radical? More socialistic? Give reasons.
  1. Write a biography of Marx (300 to 500 words).
  1. Compare the views of Marx and Vaudervelde on ” Capitalist Concentration.”
  1. Give chapter headings of a thesis on “The Socialist Movement in Germany, 1860-1890” in six or more chapters.
  1. Distinguish between (a) Socialism (b) Anarchism (c) Syndicalism.
  1. “From each according to his abilities, to each according to his needs … To every laborer the entire product of his labor … At first sight, these two formulas are absolutely contradictory. We believe, however, that it is possible and necessary to reconcile them and to complete each by the other.” — Vaudewelde.
    How does the author do this? What practical suggestions does he make for arranging distribution in the socialist state?
  1. What difficulties does Skelton think a socialist state would encounter

(a) In administering the government?
(b) In determining what commodities should be produced?
(c) In distributing wealth?

 

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Economics 7. Theories of Distribution and Distributive Justice.
Professor Carver.
3 Graduates, 7 Seniors, 13 Juniors, 1 Sophomore, 1 Other. Total 25.

 

[p. 47]

ECONOMICS 7

  1. Explain and illustrate the principle of marginal utility and its relation to the value of consumers’ goods.
  1. Explain and illustrate the law of variable proportions and its relation to the value of the factors of production.
  1. Discuss the various criteria of justice in the distribution of wealth.
  1. Explain and illustrate exactly what you understand by self-interest.
  1. How would the single tax probably affect the demand for labor? Would its effect probably be stronger on unskilled than on skilled labor? On skilled labor than on business talent?
  1. How do mechanical inventions affect the demand for capital and for different grades of labor?
  1. Describe one communistic society, giving some account of its origin, the causes of its success if it succeeded and of its failure if it failed.
  1. Outline a program for raising the wages of all the lower grades of labor.

 

________________________________________

 

Economics 8. Principles of Sociology.
Professor Carver.
10 Graduates, 41 Seniors, 74 Juniors, 18 Sophomores, 4 Other. Total 147.

 

[p. 47-8]

ECONOMICS 8

  1. What, in your opinion, is the ultimate test of progress? Give your reasons.
  1. Compare the views of Buckle and Peschel as to the influence of geographical surroundings on religion.
  1. What is the relation between the institution of the family and the institution of property?
  1. What place has the genius in social progress? Give your own opinion and state the views on this question of authors whom you have read.
  1. Outline the leading forms of waste labor and of waste land, giving briefly the reasons why each form of waste exists at the present time.
  1. Compare the views of Mill and Ross as to the limits of social control.
  1. What, according to Ross, is the relation of resentment to social order?
  1. What are the reasons for the existence of the ballot? How far would these reasons justify the extension of the ballot?

 

________________________________________

 

Economics 9. Principles of Accounting.
Asst. Professor Cole, assisted by Mr. Eliot Jones.
7 Graduates, 8 Graduates of Applied Sciences, 62 Graduates of Business School, 147 Seniors, 50 Juniors, 2 Sophomores. Total 276.

 

[p. 48-50]

ECONOMICS 9

Save one hour for the last question. It will count as one-third of the paper.

  1. Show by journal entries what should be debited and what credited for the following transactions:

(a) Granting a discount to a customer, for early payment of a bill, so that, though the amount of the bill was $100, he pays but $95.
(b) Paying a lawyer $50 for trying to collect a bill that proves uncollectible, and writing off the debt ($250) as bad.
(c) Collecting $75 as full payment, including interest to the amount of $17, for a debt previously written off as bad.
(d) Giving a friend whose credit at banks is not very good, because he is a new-comer in town, and for whom, therefore, you do not wish to endorse notes, your own note for $1000, with the understanding that he will discount it at a bank, and taking in exchange your friend’s note (for the same amount and time) which you intend to keep until maturity.
(e) Discounting at a bank your friend’s note mentioned in (d), because you find his credit has improved in the public mind and you need the money. [Discount $7.]
(f) Returning to the manufacturers, as unsatisfactory, goods billed at $500 and bought to be sold at $650.
(g) Delivering goods from the store as part payment of clerks’ wages, and allowing 5% discount to clerks. [Retail price $50, clerks’ price $47.50.]
(h) Issuing a stock dividend of $50,000.
(i) Selling a new $2,000,000 issue of stock for $2,100,000. [Corporation’s books.]

  1. A bond table gives the value of $10,000 of bonds for January 1 as $10,366.27, and for July 1 as $10,323.60. On the latter day you collect $250 interest. What entry shall you make for the interest?
    Assuming that the valuation of the bonds was determined on a 4% basis, how could you prove the correctness of the July 1 valuation if you knew that the valuation for January 1 was correct?
  1. Define and discuss the purpose of the following: —

(a) a machine rate,
(b) a life-insurance reserve,
(c) a national-bank redemption fund,
(d) a stores ledger,
(e) a machine ledger,
(f) a controlling account.

  1. Would expense burden enter into a plan of cost accounting for (a) a department store, (b) a hospital, (c) a college, (d) a gas company? Explain briefly how, or why not, in each case.

Remember in solving problems that time and confusion are often saved by the use of journal entries as guides in determining which accounts are affected.

  1. The balance sheet a year ago was as follows: —
Plant $125,000 Capital Stock $140,000
Accounts Receivable 33,000 Bills Payable 10,000
Merchandise 19,000 Accounts Payable 24,000
Cash 5,000 Surplus 8,000
$182,000 $182,000

An abbreviated tentative income sheet for the year just closing gave the following figures: —

Wages $85,000 Other Expenses $71,000
Materials 54,000 Gross Income 240,000

No items relating to the care of property were included in the “other expenses,” and they are now to be provided for. Such items are found on the debit side of the trial balance as follows:—

Depreciation $5,000 Replacement $4,000
Repairs 8,000 Additions 12,000

Supposing the only changes in the balance sheet are those caused by the items shown above (profit or loss and care of property) and that cash absorbs the net effect of changes not otherwise indicated, show the income sheet and the balance sheet for the new year.

  1. Prepare such a tabular statement or statements as an accountant should give to his employers or clients for a business yielding the following figures on three trial balances (of ledger balances) taken at the times indicated.
Trial balance at the opening of business, Jan. 1, 1912 Trial balance, Dec. 31, 1912, before the books are closed Trial balance at the opening of business, Jan. 1, 1913
Dr. Cr. Dr. Cr. Dr. Cr.
Capital Stock $200,000 $200,000 $200,000
Bills Payable 30,000 40,000 40,000
Accounts Payable 35,000 37,500 37,500
Surplus 7,000 7,000 9,000
Dividends declared 10,000 10,000
Real Estate and Plant $135,000 $137,500 $137,000
Accounts Receivable 88,200 80,200 80,200
Goods in process 17,000 17,000 20,000
Finished Goods 25,000 25,000 23,000
Raw Materials Inventory 15,000 15,000 35,000
Raw Materials 57,000
Wages 7,000 52,000 2,000
Taxes 200 2,300 200
Insurance 1,000 2,200 1,000
General Expenses 7,500
Sales 113,200
Cash 8,000 2,000 2,000
$289,200 $289,200 $397,700 $397,700 $298,700 $298,700

If you give more than one statement, prepare one at a time, and leave the reconciliation between statements until all are complete.

 

________________________________________

 

Economics 11. Economic Theory.
Professor Taussig.
20 Graduates, 1 Graduate at Business School, 4 Seniors, 5 Juniors, 1 Other. Total 31.

 

[p. 50-3]

ECONOMICS 11

[Arrange your answers strictly in the order of the questions]

  1. Explain the connection between

(a) the rent of mines;
(b) Carey’s doctrine that the total rent received by land-owners is less than interest on the total investment for improving land;
(c) the earnings of barristers or opera-singers;
(d) the earnings of ” successful ” business men.

  1. “Men are not equal. . . . Those capable of organizing and leading industrial enterprise are in a minority, and are indeed few; hence they can put a price on their services which would be impossible if there were many. Their services are not worth more on this account, but they can get more for them. Because the community needs their services, and cannot perhaps get along without them, they can, if they like, put ” famine prices ” on the commodity (organizing and directing talent) which they have to sell; while, on the other hand, those who have only labor or physical skill, though they are just as necessary, are many, and hence can about as readily be taken advantage of as the others can take advantage.” What have you to say? Can the ” famine prices ” be justified?
  1. (a) “There are, in fact, few no-rent men in actual employment; and the reason for this is clear, since work involves a sacrifice, and it does not pay to incur the sacrifice unless the earnings be a positive quantity. In those times and places in which child labor has been employed, with little regard for the welfare of the victims, labor that was not at the no-rent point, but very near it, has been pressed into service. But, where the sacrifice entailed by labor is, in some way, neutralized by a benefit that work confers, labor which creates literally nothing may sometimes be employed. Lunatics or prisoners may be kept at work, in order that they may secure fresh air and exercise, even though the amount of capital that they use, if it were withdrawn from their hands and turned into marginal capital, would produce as much as it does when it is used by them. In such a case the product imputable to their labor is nil.
    The existence of any no-rent labor enables us to make the rent formula general and to apply it to every concrete agent of production.”
    (b) “The productivity of any capital, whether human or external, will differ with the capital. Men differ in quality, i. e., in productive power, as truly as lands or other instruments differ. Some men have a high degree of earning power and some have not.
    Some men can work twice as fast as others. Some men can do higher grades of work than others. The result is that we find men classified as common manual laborers, skilled manual laborers, common mental workers, superintending workers, and enterprisers.
    Just as we can measure the rent of any land by the difference in productivity between that and the low-rent, or no-rent, land, in exactly the same way we can measure the difference in productivity between men. There is no grade of workmen called the “no-wages men,” but there would be such a grade if it were customary for their employer to pay for their cost of support (as the employer of land pays for its cost), so that only the excess above this cost were to be called wages.”

Compare the two trains of reasoning; give your opinion; and state by what authors the passages were written.

  1. “If the proprietor of superior land were to say, ‘I will take no rent for it,’ this would not make wheat cheaper. The supply would not be changed; for the same quantity would be raised, the marginal amount raised on the no-rent land would be needed and would be bought at the former price, and all other parts of the supply would command the same rate. … It is a striking fact — but one hitherto much neglected — that similar conclusions apply to the product of every other agent ” [capital and labor]. Do similar conclusions apply? Who do you think is the author of this passage?
  1. What three grounds explain, according to Böhm-Bawerk, the preference for present goods over future? Which of them does he conclude to be the most important? State Fisher’s criticism; and give your own opinion on the controverted question.
  1. “In the present condition of industry, most sales are made by men who are producers and merchants by profession. . . .For them, the subjective use value of their own wares is, for the most part, very nearly nil. … In sales by them the limiting effect which, according to our theoretical formula, would be exerted by the valuation of the last seller, practically does not come into play.” — Böhm-Bawerk.
    What is the ” theoretical formula “? and what is the importance of the qualification here stated?
  1. In what sense are the terms “demand” and “increase of demand ” used in the following passages:

(a) “The democratization of society and the aping of the ways of the well-to-do by the lower classes have greatly increased the demand for silk fabrics.”
(b) “The lower price of sugar after 1890, when sugar was admitted free of duty, at once caused an increase of demand.”
(c) “The cheapening of a commodity may mean an increase of demand such that the total sum spent on it will be as great as before, even greater than before.”

  1. Explain the essentials of Veblen’s theory of crises, and state wherein you think it most tenable, wherein least so.

 

________________________________________

 

Economics 12 lhf. Scope and Methods of Economic Investigation.
Professor Carver.
2 Graduates, 1 Radcliffe. Total 3.

 

[p. 53]

ECONOMICS 12

  1. Explain verbally, and show by means of an outline, the relation between private and public economics and the main subdivisions of each.
  2. Into what main departments would you subdivide the subject of economics if you were going to write a general text book for college classes. Give your reasons.
  1. What are the characteristic methods of reasoning, methods of collecting information, and methods of exposition in economics? Mention examples, or give illustrations of each. What are the special advantages of each? To what class of problems is each especially adapted?
  1. Comment upon the following: —

“The economist may thus be considered at the outset of his researches as already in possession of those ultimate principles governing the phenomena which form the subject of his study, the discovery of which in the case of physical investigation constitutes for the inquirer his most arduous task; but, on the other hand, he is excluded from the use of experiment.” (Cairnes, pp. 89-90.)

  1. What, according to Warner, are the characteristic methods of determining the causes of poverty? What are the merits and defects of each method? Give illustrations.
  1. Comment upon the statement that “political economy depends more upon reasoning than on observation.” Is this the same as saying that the greatest present need is for sound reasoners rather than for close observers? Would either statement apply to all possible conditions and to all classes of problems?
  1. Discuss Clark’s reasons for describing capital as a sum of money.

 

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Economics 14. History and Literature of Economics to the year 1848.
Professor Bullock.
7 Graduates. Total 7.

 

[p. 54]

ECONOMICS 14

  1. What significant analyses of economic structure and functions were made by the mercantilists?
  1. Discuss the development of economic opinions as reflected in the writings of Hales, Bodin, Montchrétien, Mun, Petty, Boisguilbert, Cantillon, Vanderlint, and Hume.
  1. Explain the structure and purpose of the “Wealth of Nations,” and give a brief analysis of the doctrines of the first two books.
  1. Discuss the treatment of the subject of population by Aristotle, the Schoolmen, Cantillon, Smith, and Malthus.
  1. At what points did the economic theories of Ricardo differ from those of Adam Smith?

 

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Economics 16. The History of Modern Socialism.
Asst. Professor Rappard.
4 Graduates Total 4.

 

[p. 54-5]

ECONOMICS 16

  1. Fill out the blanks in the following table according to the Marxian phraseology and theory.
Con-stant capital Vari-able capital Rate of surplus value Capital con-sumed Indi-vidual rate of profit Value of commo-dities pro-duced Cost price of commodities prod-uced Average rate of profit Price of com-modities Deviation of price from value
90 10 50% 20
80 20 50% 10
70 30 50% —
  1. “The theory of value which Marx presents is a variation of the familiar labor-value doctrine.” Discuss.
  1. State the Marxian theory of rent.
  1. What is meant by the Bernstein-Kautsky controversy? State three of the principal points involved, with the arguments advanced on both sides.
  1. What, according to Skelton, are the distinctive features of Utopianism? How does Shelton classify the Utopian doctrines?
    What, according to Skelton, are the two “quite distinct interpretations” of which the Marxian materialist conception of history is susceptible?
  1. “In spite of himself, Marx was the last of the classical economists.” How does Shelton justify this assertion?
  1. “Had the third volume of ‘Capital’ appeared at the same time as the first, little would have been heard about ‘exploitation’ from socialist platforms.” Why not, according to Skelton?

 

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Economics 23. Economic History of Europe to the Middle of the Eighteenth Century.
Dr. Gray.
4 Graduates, 1 Radcliffe. Total 5.

 

[p. 55]

ECONOMICS 23

  1. Discuss the origin and early expansion of capital in Italy, the Low Countries, Germany and England. (One hour.)
  1. Compare the development of copyhold in England with that of Meierrecht in Germany. In what way were agrarian conditions in southwestern Germany different from conditions in the north-west at the beginning of the sixteenth century.
  1. Trace the growth of the mercantile system in England. Has Cunningham’s treatment any bias? Explain.
  1. Describe fully four of the following documents: —

Notularium Johannis Scribae.
An English Pipe Roll.
Royal licenses to export English wool in 1273.
De institutis Lundonie.
Chrysobullium Alexii I.

 

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Economics 31. Public Finance.
Professor Bullock.
6 Graduates, 1 Junior. Total 7.

 

[p. 55-6]

ECONOMICS 31

  1. How far does the present British system of taxation conform to the maxims of Adam Smith?
  1. How far does the present French system of taxation conform to Smith’s maxims?
  1. How far does the present Prussian system of taxation conform to Smith’s maxims?
  1. How far would the single tax on land values conform to Smith’s maxims?
  1. Compare the general property tax in Switzerland with the same tax in the United States.
  1. What changes in the general property tax have occurred in the United States in recent years?
  1. Discuss fully the opinions of Leroy-Beaulieu or Eheberg concerning the income tax.
  1. Discuss fully the opinions of Leroy-Beaulieu or Eheberg concerning the inheritance tax.

 

________________________________________

Economics 32 2hf. Economics of Agriculture, with special reference to American conditions.
Professor Carver.
8 Graduates, 2 Seniors, 1 Junior. Total 11.

 

[p. 56]

ECONOMICS 32

  1. What are some of the larger characteristics which distinguish rural from urban life?
  1. Where would you draw the line between large scale and medium scale, and between medium scale and small scale farming, and what are the principal advantages and disadvantages of each?
  1. Exactly what is the distinction between intensive and extensive farming, and what are the advantages and disadvantages of each?
  1. To what system of culture does the horse as a draft animal belong, and what are some of the characteristics of that system?
  1. Where do we find the larger percentage of tenancy in this country, where land is highly productive or where its productivity is low? How would you explain the situation?
  1. Give your ideas as to the function of the middle-man, and to what extent and how that function may be performed by the farmers themselves.
  1. What are the advantages of diversified farming as compared with specialized farming?
  1. Give your ideas as to how country life may be made more attractive to men and women of education and culture.

________________________________________

Sources:

Harvard University Examinations. Papers set for final examinations in history, history of science, government, economics, philosophy, social ethics, education, fine arts, music in Harvard College. June, 1913. Cambridge, MA.

Harvard University. Reports of the President and the Treasurer of Harvard College, 1912-13, pp. 57-58.

 

 

Categories
Columbia Economists Exam Questions

Columbia. History of Economics Exams. J.M. Clark, 1949-51

John Maurice Clark

The successor to Wesley Clair Mitchell in teaching the history of types of economic theory at Columbia University was John Maurice Clark, the son of John Bates Clark. Because of the identical course descriptions printed in the official University Announcement, I figure it is reasonable transcribing the final exams for the Winter and Spring sessions from two different academic years (the only ones I was able to find for the courses, Econ 115 and 116, respectively). John Maurice Clark was a pack rat, but not a model of consistent filing, so there may be other copies to be found in his papers.

In a handwritten class list for Econ 115 (Fall, 1950) one finds 43 names of attendee–with grades noted for 26 of them. The grade distribution of those 26 students was: A (2), A- (6), B+ (5), B (6), B- (3), C+ (1), C (3). Of more than passing interest for historians of economics is that the author of Economic Theory in Retrospect, Mark Blaug, only received a grade of B minus (rank 22 of 26 graded)! Evidence for the slope of Blaug’s learning curve is seen in his grade for Econ 116 in 1951 where he received an A minus. The only other name I immediately recognize from the list was the later Library of Congress specialist on socialist economies, John P. Hardt (Ph.D., 1954). Hardt’s name will long be associated with the green volumes of Joint Economic Committee reports on the economies of China, USSR, and Eastern Europe) with “(vet)” noted after his name but without a grade.

____________________________

Course Announcement

Economics 115-116—Formative types of economic theory. 3 points each session. Professor Clark.
M. W. 12. [310 Fayerweather in Spring session; 1948/49 in 313 Fayerweather for Winter session, 1950/51]

Readings and critical discussion of outstanding examples of the parent stock of classical economics, with some regard to historical setting, and of subsequent outstanding contributions.

Source: Columbia University. Announcement of the Faculty of Political Science. Winter and Spring Sessions (1948-1949 and 1950-1951).

____________________________

Economics 115
Final Examination
January, 1951

Answer any two questions, taking about the time for the actual writing that a regular examination would take. Those who do the work during Christmas holidays will please return papers January 8; others Friday, January 26, unless otherwise specified.

—————–

  1. Do the views of ancient writers (Hebrew, Greek or Roman) afford the same kind of evidence as the writings of modern economists as to economic conditions and practices of their time?
  2. Discuss extent of applicability of medieval doctrine on price; variations or relaxations; and how far the doctrine was effective in practice.
  3. Explain and appraise Quesnay’s “Tableau Economique”.
  4. State key doctrines of the Physiocrats and indicate how they could be regarded as adaptations to an historical situation.
  5. Compare views of Smith and Ricardo on the relation of labor to value.
  6. Compare treatment of rent in Smith, Malthus and Ricardo.
  7. On what grounds did Adam Smith sanction departures from laissez-faire?
  8. Topic: dominant conceptions of what economic activity is for. Compare the dominant conception (or at most a few dominant conceptions) of as many of the following as you feel you can reasonably cover: typical Mercantilists, Physiocrats, Ricardo, John Stuart Mill.
  9. What does Bentham’s theory contribute to the basic rationale of economics, aside from his ideas on economic matters themselves? (Book V. of J. S. Mill’s “Principles of Political Economy” might contain hints.)
  10. State doctrines of Ricardo which had roots in historical conditions of the time, and indicate the connections.
  11. Compare Ricardo’s treatment of value with either Adam Smith’s or John Stuart Mill’s.
  12. What were the sources of J. S. Mill’s departure from strict Ricardianism?

Source: John M. Clark Papers. Columbia University Libraries. Manuscript Collections. Box 24, Courses: Misc.

____________________________

ECONOMICS 116
Final examination
May, 1949

Answer two questions from the following list:

  1. If things do not exchange in proportion to their labor cost, in what sense does labor cost govern value, under the labor theory? Discuss
  2. Discuss the proper relation between historical and theoretical materials in the equipment of an economist.
  3. (a) What is the meaning of “utility”?
    (b) What difference does it make whether economic theory can or cannot make “interpersonal comparisons” of utility?
  4. State some form of theory of the relation of marginal utility to price. Is this a tautological truth? Approximately true or true with qualifications? Inaccurate enough to be misleading? Discuss.
  5. Define the meaning of marginal productivity as a basis for the division between labor and capital in industry. How, if at all, does it apply to added labor in a plant working below capacity?
  6. How does Marshall treat the problem of differences between different producers and their costs of production, in his theory of value? Compare treatment of same problem in Chamberlin and/or J. B. Clark.
  7. Compare Marshall and Chamberlin as to treatment of the element of time in normal price.
  8. Define various types of welfare economics. Select one and indicate the key problems and difficulties, and methods of dealing with them.
  9. Analyze the logic of the difference between J. B Clark and Veblen as to what are the normal tendencies of a system of business enterprise.
  10. Formulate some other significant question on the material covered in the course, and answer it.

Source: John M. Clark Papers. Columbia University Libraries. Manuscript Collections. Box 35, History of Economic Thought; Folder (tab torn) “??—Cameral. epoch.”

Image Source: Portrait of John Maurice Clark from the collection of portraits of economists presented in 1997 as a gift to the Department of Economics of Duke University by Professor Warren J. Samuels of Michigan State University. Free use of these portraits in Web documents, and for other educational purposes, is encouraged: users are requested to acknowledge that the images come from The Warren J. Samuels Portrait Collection at Duke University.