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Johns Hopkins. General Written Exam for Economics PhD. 1956

 

One is struck by the relative weight of the history of economics in this four part (12 hours total) general examination for the PhD degree at Johns Hopkins in 1956. Also interesting to note just how many different areas are touched upon. Plenty of choice, but no place to hide.

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Other General Exams from Johns Hopkins

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GENERAL WRITTEN EXAMINATION FOR THE PH.D DEGREE
DEPARTMENT OF POLITICAL ECONOMY

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PART I
June 4, 1956, 9-12 a.m.

Answer two questions, one from each group.

Group I.
  1. Write an essay on the theory of capital. It should include a discussion of the place of capital theory in economic analysis: for what purposes, if any, we need such a theory, Do not omit theories or issues which were important in the history of doctrines, even if you should regard them as irrelevant for modern analysis.
  2. Discuss and compare the capital theories of Böhm-Bawerk, Wicksell, and Hayek.
  3. Write an essay on the theory of income distribution. Organize it carefully, as if it were designed for an article in the Encyclopedia of the Social Sciences. Include discussions of alternative theories such as imputation theories, residual theories, surplus value theories, etc.
Group II.
  1. The following statements attempt to show that marginal productivity theory is inconsistent with factual observation. Accepting the stated facts as given, discuss whether they call for the rejection or major modification of the theory. If so, how? If not, why not?
    1. “In the most important industries in the United States wage rates are set by collective bargaining and are largely determined by the bargaining strength of the parties. Marginal productivity of labor is neither calculated nor mentioned in the process.”
    2. “In many industries competition among employers for workers is so limited that most firms are able to pay less than the marginal productivity of labor.”
    3. “Workers in some trades — say, carpenters or bricklayers — work essentially the same way as their predecessors did fifty years ago; yet their real wages have increased greatly, probably not less than in occupations where productivity has improved considerably over the years.”
  2. The determination of first-class and second-class passenger fares for transatlantic ocean transportation involves problems of (a) joint or related cost, (b) related demand, and (c) discriminatory pricing. Discuss first in what ways these three phenomena are involved here; then formulate a research project to obtain the factual information required for an evaluation of the cost relationships and demand relationships prevailing in the case of two-class passenger ships; and finally state the criteria for judging whether the actual rate differential implies conscious discrimination in favor of first-class passengers, conscious discrimination against first-class passengers, wrong calculation and faulty reasoning on the part of the shipping lines, or any other reason which you may propose.

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PART II
June 4, 1956, 2-5 p.m.

Answer three questions, at least one from each group.

Group I.
  1. There is a running debate on the question whether trade unions are labor monopolies. This debate obviously turns on the meaning of monopoly and on what effects union have had on their members’ wages, output, and conditions of work. Give both sides of the argument.
  2. Write an essay on the demand for labor.
  3. Write down everything you know about the incidence of unemployment among various classes of workers and about the fluctuations of unemployment over time. Discuss some of the problems of developing a workable concept of unemployment. Indicate whether the statistical behavior of unemployment throws any light on its causation.
Group II.
  1. What is a “public utility”? According to accepted regulatory principles, how are the “proper” net earnings of a utility company determined? And, finally, what factors are considered in setting an “appropriate” rate structure?
  2. What is the major purpose of the Sherman Anti-Trust Act of 1890? What are some of the more significant problems in determining what constitutes “restraint of trade”? What tests would you apply? Why?
  3. Analyze the economic effects of a corporate income tax. Be as comprehensive as you can.
  4. What are flexible agricultural price supports? Explain how they are determined and applied. Evaluate their use in the light of reasonable alternatives.

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PART III
June 5, 1956, 9-12 a.m.

Answer three questions, one from each group.

Group I.
  1. Describe briefly Schumpeter’s theory of economic development, and comment upon the possibility of testing it empirically.
  2. Describe briefly Keynes’ general theory of employment, interest and money; state its assumptions, structure, and conclusions; and evaluate it critically in the light of more recent theoretical and empirical findings.
Group II.
  1. What characteristics of economic cycles would you consider important in a statistical study of business cycles?
  2. In the study of long-term trends, what criteria would you use in constructing index numbers of production?
  3. What measures of economic growth of nations would you us? Consider carefully the various characteristics that you would deem indispensable in measurements of this sort.
Group III.
  1. Give a brief definition, explanation and illustration for each of the following:
    1. variance;
    2. confidence interval;
    3. coefficient of regression;
    4. coefficient of correlation;
    5. coefficient of determination;
    6. regression line.

[Note: Indicate where you have confined yourself to simple, linear correlation.]

  1. Write an essay on statistical inference by means of the following three techniques:
    1. chi square;
    2. analysis of variance;
    3. multiple regression.

Indicate the types of problem in which they are used, and how each type of problem is handled.

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PART IV
June 5, 1956, 2-5 p.m.

Answer four questions, one from each group.

Group I.
  1. Political arithmetic is a term that is applied to certain writings that appeared from roughly 1675 to 1800. What gave rise to such writings? What were the contributions of the different members of the “group”? Why should Political Arithmetic be given a terminal date?
  2. Discuss Quesnay’s Tableau Économique, Do you see in it anything of significance for the subsequent development of economic theory?
  3. Present arguments for the contention that J. B. Say was far more than “a mere disciple of Adam Smith”.
Group II.
  1. Discuss the relations between the English economic literature of the first half of the 19th century and the events, conditions, and general ideas of that time.
  2. Select three episodes in American economic history, and use your knowledge of economic theory to explain them.
Group III.
  1. Analyze the economic effects of a large Federal debt. Be as comprehensive as you can.
  2. At one time or another each of the following has been proposed as the proper objective or goal of monetary policy: (1) The stabilization of the quantity of money; (2) The maintenance of a constant level of prices; (3) The maintenance of full employment.
    Explain for each policy objective (a) what it means, that is, exactly what in “operational” terms might be maintained or stabilized; (b) how the objective could be achieved, that is, what techniques could be used to achieve it; and (a) the difficulties with or objections to the proposal.
  3. Irving Fisher and others have proposed that all bank be required to hold 100% reserves against their deposits. This was designed to prevent bank failures and, more important, to eliminate the perverse tendency of money to contract in recessions and expand in booms.
    Explain whether the proposal would have the effects claimed for it, and if so, why, and discuss what other effects it might have.
Group IV.
  1. Discuss the “law of comparative advantage” in international trade.
  2. Discuss “currency convertibility”.
  3. Discuss the “transfer problem”.
  4. Discuss the “optimum tariff”.
  5. Discuss the “foreign-trade multiplier”.
  6. Discuss alternative concepts of the “terms of trade”.
  7. Discuss the “effects of devaluation upon the balance of trade”.

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Source: Johns Hopkins University. Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy Series 5/6.  Box No. 6/1. Folder: “Comprehensive Exams for Ph.D. in Political Economy, 1947-1965”.

Image Source: Fritz Machlup in an economics seminar. Evsey Domar visible sitting third from the speaker on his right hand side. Johns Hopkins University Yearbook, Hullabaloo 1956, p. 15.

Categories
Exam Questions Harvard Public Utilities Transportation

Harvard. Railroads and regulation. Exams and enrollment. Ripley and Meyer, 1901-1902

American Railroad Scene

 

The first course dedicated to the economics of railroads at Harvard was offered during the first semester of the 1887-1888 academic year and taught by James Laurence Laughlin. After that the field was handed off to a several different instructors. By 1901-02 the course had been split into one semester dedicated to the management of railroads and one semester to the regulation of railroads and other public works.

51 hf. Railway Economics, with particular reference to the United States. Taught by William Z. Ripley in 1901-1902.

52 hf. Railways and other Public Works (advanced course). Taught by Hugo Richard Meyer in 1901-1902.

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Previous year’s exams
1900-01

Hugo Richard Meyer taught both semesters.

Harvard. Final Exams for Railways and Other Public Works. Meyer, 1901

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Original Course Announcement
Economics 51 hf.

For Undergraduates and Graduates

5 1hf. Railways and other Public Works, under Public and Corporate management. Half-course (first half-year). Tu., Th., and (at the pleasure of the instructor) Sat., at 1.30. Mr. [Hugo Richard] Meyer.

In this course it is proposed to review the history and working of different modes of dealing with railway transportation, and to deal summarily with the questions of street railways, water, gas, and electric light supply. Consideration will be given to the economic characteristics of these industries, the theory and history of railway rates, the effects of railway service and railway changes on other industries, the causes and consequences of monopoly conditions. The history of legislation, in the more important European countries and in Australia will be followed, as well as the different modes in which the countries in question have undertaken the regulation and control of private corporations, or have assumed direct ownership, with or without management and operation. As to the United States, there will be a consideration of the modes of regulation, through legislation and through commissions, at the hands of the several states; and of the course of legislation by the federal government, concluding with a study of the working of the Interstate Commerce Act.

Written work, in the preparation of papers on assigned topics, will be required of all students in the course. Course 5 is open to students who have taken Economics 1.

Source: Harvard University Archives. Annual Announcement of the Faculty of Arts and Sciences, Division of History and Political Science comprising the Departments of History and Government and Economics (June 21, 1901).  Official Register of Harvard University 1901-1902. Box 1. Bound volume: Univ. Pub. N.S. 16. History, etc. pp. 41-42.

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Revised Statement Concerning Course 51 hf.

51 hf. Railway Economics, with particular reference to the United States. Half-course (first half-year). Tu., Th., and (at the pleasure of the instructor) Sat., at 1.30. Professor [William Zebina] Ripley (Mass. Inst. Technology).

A brief outline of the historical development of rail and water transportation in the United States will be followed by a description of the condition of the railroad system at the present time; with a view of familiarizing the student with the principal sources of information. The four main subdivisions of Rates and Rate-Making, Finance, Traffic Operation, and Legislation, will be considered in turn. The first subdivision deals with the relation of the railroad to the shipper. It will comprehend an analysis of the theory and practice of rate-making, including, for example, freight classification, the nature of railroad competition, the long and short haul principle, pooling, etc. Under the second heading, having reference to the interests of owners and investors, an outline will be given of the nature of railroad securities, such as stocks, bonds, etc., the principles of capitalization, the interpretation of railroad accounts and annual reports, receiverships and reorganizations, etc. Railroad Operation, the third subdivision, will deal with the practical problems of the traffic department, such as the collection and interpretation of statistics of operation, pro-rating, the apportionment of cost, depreciation and maintenance, etc. In the fourth subdivision, Legislation, the course of state and federal regulation and control will be traced. Discussion will follow concerning the work of the Interstate Commerce Commission, judicial interpretation of the law, the relation of the Commission to the Courts, etc.

Written work in the preparation of papers on assigned topics will be required of all students in the course. Course 5 is open to all students who have taken Economics 1.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 1, Folder “Economics, 1901-1902.”

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Course Enrollment

For Undergraduates and Graduates:—

[Economics] 5 1hf. Professor [William Zebina] Ripley. — Railway Economics with particular reference to the United States.

Total 81: 6 Graduates, 40 Seniors, 19 Juniors, 5 Sophomores, 11 Others.

Source: Harvard University. Report of the President of Harvard College, 1901-1902, p. 77.

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Mid-Year Examination, 1902
ECONOMICS 5.

  1. State three points of difference between capital stock and bonds, indicating the resultant effect upon American railway management.
  2. Outline the course of state legislation and of judicial decisions, leading to the enactment of the Act to Regulate Commerce, etc. of 1887.
  3. Describe the present condition of affairs as respects the power of the Interstate Commerce Commission to prescribe freight rates; with the nature of the principal suggestions for amendment of the law in this regard.
  4. What principles were involved in the following cases:

(a) Social Circle; (b) Cincinnati and Chicago Freight Bureaus; and (c) Louisville and Nashville.

  1. In what two independent ways has the Long and Short Haul clause been rendered ineffective as originally interpreted. Illustrate by examples.
  2. What is the principal difference between rail and water competition in the case of canals, small rivers, and the Great Lakes?
  3. Discuss the various bases proposed for railroad capitalization, defining that term exactly. What is the policy in Massachusetts in this respect?
  4. Combine and arrange the following items so as to give the best information about the operation and condition of the road.

(Do not rewrite the names but use the corresponding numbers where possible.)

1. Passenger train miles 2,000,000
2. Freight train miles 3,400,000
3. Passenger train earnings $2,400,000
4. Freight train earnings $5,500,000
5. Income from investments $100,000
6. Dividends $500,000
7. Franchises and property $90,400,000
8. Operating expenses $4,700,000
9. Tons freight carried 2,800,000
10. Av. load per car (loaded and empty), tons 8.2
11. Av. no. loaded cars per train 12.3
12. Av. no. empty cars per train 6.7
13. Interest charge for year $2,200,000
14. Due other roads $100,000
15. Stocks and bonds owned $4,900,000
16. Surplus for the year $300,000
17. Profit and loss account $1,000,000
18. Taxes accrued but not due $100,000
19. Capital stock $50,000,000
20. Supplies on hand $500,000
21. Taxes for the year $300,000
22. Accounts receivable $500,000
23. Cash $1,000,000
24. Bonds of the company in its treasury $800,000
25. Accounts payable $1,000,000
26. Interest due $700,000
27. Funded debt $45,000,000
28. Due from other roads $100,000
29. Interest accrued not due $300,000
  1. Describe three methods of treating depreciation and illustrate each in a case for which it is especially serviceable.
  2. Determine whether to charge the following expenditure to capital account or to revenue account. State your reasons fully. If you should charge to operating expenses, state to which general group.
    • A new forty-ton car to replace a thirty-ton car.
    • An expensive new anion station substituted for two small inexpensive stations.
    • Premium paid on purchase of stock in a connecting line.
    • Wages on a train hauling company’s coal for company’s use.

Source: Harvard University Archives. Harvard University Mid-year Examinations, 1852-1943. Box 6, Bound volume: Examination Papers, Mid-Years, 1901-02.

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Original Course Announcement
Economics 52 hf.

52 hf. Railways and other Public Works (advanced course). Half-course (second half-year). Tu., Th., and (at the pleasure of the instructor) Sat, at 1.30. Mr. Meyer.

This course is a continuation of the preceding one. It makes a detailed study of certain of the more important questions discussed in the first half-year. Among those questions are: the accounts and finances of railroads and street railways, as illustrated in the reports and statements of important systems; the development of transportation methods in certain important railroad systems; some State Commissions and their action in specific cases; the decisions rendered by the Interstate Commerce Commission; and some further aspects of public ownership, especially in Germany.

Subjects will be assigned for special examination, and the third hour may be used for the presentation and discussion of the reports upon the subjects examined.

Course 52 is open to students who have passed satisfactorily in Course 51.

Source: Harvard University Archives. Annual Announcement of the Faculty of Arts and Sciences, Division of History and Political Science comprising the Departments of History and Government and Economics (June 21, 1901).  Official Register of Harvard University 1901-1902. Box 1. Bound volume: Univ. Pub. N.S. 16. History, etc. p. 42.

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Revised Statement Concerning
Course 52 hf.

51 hf. The problems of public ownership of railways; and the question of the public or the private ownership of street railways, gas, and electric lighting plants. Half-course (second half-year). Tu., Th., and (at the pleasure of the instructor) Sat, at 1.30. Mr. [Hugo Richard] Meyer.

The problems of the public ownership of railways will be discussed under three headings: the problem of making a railway budget fit into the state budget; the problem of devising a scheme of railway rates that shall meet the demands of ideal justice, and shall at the same time be sufficiently elastic to meet the needs of commerce and industry; and the problem of a large body of civil servants in a self-governing community. The discussion of these questions will be based mainly on the experience of Germany and the Australian Colonies, though some notice will be taken of the experience of France and Italy.

The question of the public or the private ownership of street railways, gas, and electric light plants will be studied by means of a comparison of the working of the so-called American practice of little or no control with the working of the British practice of control by Parliament, supplemented by the policy of municipal ownership.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 1, Folder “Economics, 1901-1902.”

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Course Enrollment
Economics 52 hf.

For Undergraduates and Graduates:—

[Economics] 5 2hf. Mr. [Hugo Richard] Meyer. — The Problems of Public Ownership of Railways; and the Question of the Public or the Private Ownership of Street Railways, Gas, and Electric Lighting Plants.

Total 49: 5 Graduates, 20 Seniors, 11 Juniors, 5 Sophomores, 8 Others.

Source: Harvard University. Report of the President of Harvard College, 1901-1902, p. 77.

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Final Examination, 1902
ECONOMICS 52

  1. Railway rates and the utilization of the agricultural resources: in Germany, in Russia, and in the United States. A study of the railway problem as the problem of conflicting local interests.
  2. Is the State, when put in charge of the railways, likely to be in a better position than are corporations to pursue an enlightened policy as to the extension of the railroad net and the reduction of railway charges; is it likely to be more considerate of the interests and the rights of the public than are corporations?
    Base your argument upon the experience of the countries studied in this course.
  3. Has the management of the railways by the State in Germany put the small shipper on a footing of equality with the large shipper?
  4. What is the evidence as to the profitableness of electric street railways in the United States?
  5. In the long run, would it be to the interest of the public, to adopt the policy of securing to the public the profit made by public service corporations in excess of the return obtained from good mortgages on real estate?
  6. The evidence as to the comparative economy of management of private gas plants in England and municipal gas plants; as to the comparative cost of gas to the consumer served by private plants and the consumer served by public plants.
  7. State carefully the body of administrative law to be found in the decisions of the Massachusetts Gas and Electric Light Commissioners upon petitions for reduction in the price of gas and of electric light.

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 6, Bound volume: Examination Papers, 1902-03. Papers Set for Final Examinations in History, Government, Economics, Philosophy, Education, Fine Arts, Architecture, Landscape Architecture, Music in Harvard College (June, 1902), pp. 24-25.

Image Source: American Railroad Scene: Lightning Express Trains Leaving the Junction. Currier & Ives (1874). Published in: Viewpoints; a selection from the pictorial collections of the Library of Congress …. Washington : Library of Congress …, 1975, no. 39.