The course exam transcribed below would appear to correspond to John Maurice Clark’s course Economics 110 (Dynamics of value and distribution) which was offered in the Spring Session rather than Clark’s course Economics 109—Foundations of Social Economics which was offered in the Winter Session. Milton Friedman’s own notecards show that he did in fact attend Economics 109, but the content of the course as seen in Friedman’s notes is not reflected in the questions in the exam below. The handwritten note by Friedman identifying the exam as coming from John Maurice Clark’s course “Social Economics” (i.e. Economics 109) and dated May 1934 is clearly incorrect. Examine the course description for Economics 110 to see if you agree.
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[COURSE DESCRIPTION]
Economics 110—Dynamics of value and distribution. 3 points Spring Session. Professor J. M. Clark. M. and W. at 2:10. 401 Fayerweather.
The functions of value and price; the dynamics of supply and demand for commodities and factors of production; the institution of competition; social vs. competitive schemes of distribution; value and expenses of production; expenses and ultimate costs of production; cumulative vs. self-limiting changes; the level of prices; economic rhythms.
Source: Columbia University Bulletin of Information, Thirty-third series, No. 26 (March 25, 1933). Courses offered by the faculty of Political Science for Winter and Spring Sessions 1933-1934. page 26.
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[Examination Questions for J. M. Clark’s Economics 110, Spring Term 1934.]
[Friedman’s handwritten note]
Exam in J. M. Clark’s course “Social Economics”, May 1934 [sic]
Answer three questions.
I. Discuss the problem of the general characteristics of the supply-schedule for savings.
II. Discuss whether the only geographical price-structure consistent with competition is one in which each producer sells at a price or prices which yield him a uniform amount at the point of production, the more distant purchasers paying the additional costs of transportation (Potter’s mill-base price.)
III. How would you draw the line between monopoly limited by substitution, and competition?
IV. Discuss why competition between two or three large producers requires a different theoretical analysis from that which describes “pure competition” and why no single definitive answer to this problem has been found.
V. Would you recommend further shortening of standard hours of labor per week, with wages per hour raised to give the worker not less than his former weekly earnings, as a means of stimulating business activity through increased purchasing power?
VI. Can a cumulative increase in business activity be expected as a result of increased government spending during a depressions: (a) financed by borrowing, (b) financed by a sales tax? Could there be such an increase in physical volume of production and employment, or only in physical volume of business?
VI. B. (May be substituted for VI., but not both answered)
Under what conditions may an increase in expenditure for a given commodity have a cumulative effect in increasing the general volume of production; and under what conditions will it not have such an effect?
Source: Milton Friedman Papers, Hoover institution Archives, Box No. 115, Folder 13 (Biographical: Class Exams circa 1932-1938).
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