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Harvard. Final Examinations for Graduate Economic Theory. Chamberlin, 1948

 

From the Harvard archives I have transcribed the final examinations for the both semesters of a two-semester course in graduate economic theory taught in 1947-48 by Edward H. Chamberlin. The syllabus/reading-list for that course was transcribed in an earlier posting.

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Enrollments

[Economics] 101a. Professor Chamberlin—Economic Theory, I (F).

Total 84: of which 32 Graduates, 11 Seniors, 4 Junior, 17 Public Administration, 12 Radcliffe, 8 Others.

[Economics] 101b. Professor Chamberlin—Economic Theory, I (S).

Total 88: of which 37 Graduates, 10 Seniors, 1 Junior, 21 Public Administration, 8 Radcliffe, 11 Others.

 

Source: Harvard University. Report of the President of Harvard College 1947-48, p. 90.

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Final Examination
Economic Theory I
Professor Edward H. Chamberlin

1947-48
HARVARD UNIVERSITY

ECONOMICS 101a

Write on the first question (one hour) and any four of the others (1/2 hour each). (The first question will receive double weight).

  1. (one hour) The Marshallian analysis of monopoly required only the demand curve for the monopolist’s product, and the cost curve for the monopolist’s production, in order to determine the price-output combination which would make profits a maximum for the firm. In what respects does monopolistic competition theory replace or supplement the earlier analysis? Was the earlier analysis logically wrong, incomplete, or both?
  2. (1/2 hour) Mill gave great importance to the category of constant cost in his theory of value. More recently, as a result of the Marshallian analysis, some have concluded that constant cost is of no importance whatever, whereas others would retain it as a major category. Discuss the issues involved and give your own conclusion.
  3. (1/2 hour) Suppose a firm already to possess a certain plant, and to contemplate its expansion. Using a diagram, distinguish between, and relate to each other, the following six curves:
    1. The average and marginal cost curves for the original plant.
    2. The average and marginal cost curves which would be relevant to deciding on the expansion policy.
    3. The average and marginal cost curves after the expansion has taken place.

Explain the most significant principles involved in this analysis.

  1. (1/2 hour) Explain Marshall’s concept of “quasi-rent,” distinguishing it from the concept of “rent.” Explain the analytic use to which Marshall puts the concept, and give an illustration (preferably one of your own).
  2. (1/2 hour) A production surface may be regarded as a hill which may be “sliced” in various directions. Draw a diagram, or “indifference map,” which shows the following “slices,” all passing through the same point:
    1. Constant product
    2. Constant outlay
    3. Constant proportions of factors
    4. One of the two factors constant.

Show also (5) a “scale line” passing through this same point.
Explain in each case the meaning of the curve you have drawn.
What is the relation of this diagram to the cost curve analysis?

  1. (1/2 hour) “There is no use discussing whether or not we measure utility. The alternative to measurement is chaos, and since markets are not chaotic, there must be measurement.” Discuss the issues involved in this quotation and in measuring utility generally. To what extent are they solved by the use of indifference curves instead of demand curves?
  2. (1/2 hour) What is the essential feature of oligopoly which makes the behavior of an oligopolistic firm so intractable to ordinary analysis? Indicate at least one technique whereby the problem of price determination under oligopoly (or, in the special case of two: duopoly) has been reduced to manageable proportions and some conclusion reached. Criticize this technique and the conclusion.

Final. January, 1948.

Source: Harvard University Archives. Harvard University. Final examinations, 1853-2001. HUC 7000.28, Box 15 of 284. Harvard University Faculty of Arts and Sciences. Papers Printed for Final Examinations in History, History of Religions, … , Economics, … , Military Science, Naval Science. January, 1948.

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Final Examination
Economic Theory I
Professor Edward H. Chamberlin

1947-48
HARVARD UNIVERSITY

ECONOMICS 101b

Please write on the cover of your bluebook the numbers of the questions you have answered, in the order in which they appear in the book.

Part I

Answer both questions, allowing 45 minutes each.

  1. Discuss any three specific problems involved in defining the marginal product of a factor of production. You may discuss particular factors, as well as the general problem.
  2. Discuss the major issues in “welfare economics” with respect to any three of the following subjects:
    1. The significance of “perfect competition” in welfare economics
    2. The production and exchange conditions for maximum economic welfare
    3. Equality of incomes
    4. Interpersonal comparisons
    5. Elements of monopoly
    6. Economic vs. non-economic welfare

Part II

Answer any three questions, allowing 30 minutes each.

  1. “Interest is a payment necessary to induce people to give up part of their current income to make capital formation possible. In a static state no capital formation takes place; therefore the interest rate in a static state would be zero.” Discuss.
  2. Outline a theory of profits taking into account all the factors which in your opinion influence both total profits and the earnings of particular Define your terms.
  3. Explain and contrast either Ricardian or Marshallian rent with Robinsonian rent. What is your own view on the main issues involved?
  4. Assume that trade unions consider the demand for the labor of their members in determining their wage objectives. Suppose a number of craft unions in an industry (say, the building industry) to be amalgamated into a single union. How would you expect this amalgamation to affect their wage objectives? (Do not discuss the question of bargaining strength).
  5. Discuss the equilibrium of the firm under conditions such that selling outlays are profitable.

 

Final. May, 1948.

 

Source: Harvard University Archives. Harvard University. Final examinations, 1853-2001. HUC 7000.28, Box 15 of 284. Harvard University Faculty of Arts and Sciences. Papers Printed for Final Examinations in History, History of Religions, … , Economics, … , Military Science, Naval Science. May, 1948.

Image Source: Edward H. Chamberlin in Harvard Class Album 1946.