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Harvard Suggested Reading Syllabus Undergraduate

Harvard. Principles of Economics. Course outline, readings, exam questions, 1949-50

 

Of particular interest in this two-track (for economics concentrators and non-concentrators, respectively) principles of economics course is that the Keynesian Cross chapter (XII) of Paul Samuelson’s new textbook Economics was assigned in the concentrators’ version.

The course was taught by Professor Burbank and the newly minted Harvard Ph.D. Wesley Glenn Campbell who would later be hand-picked by former President Herbert Hoover to head to the Hoover Institution.

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Course Description

ECONOMICS
1949-50

Primarily for Undergraduates

Economics 1 (formerly Economics Aa and Ab). Principles of Economics

Full course. Tu., Th., Sat., at 11. This course is conducted by sections. It will be divided into sections for concentrators and for non-concentrators. There will be sections at other hours. (Radcliffe sections will meet Tu., Th., Sat., at 11 and at such other times as the enrolment may justify.) Professor BURBANK, Dr. [Wesley Glenn] CAMPBELL [Harvard Ph.D., 1948], and other MEMBERS OF THE DEPARTMENT.

Economics 1 may be taken by properly qualified Freshmen with the consent of the instructor.

Economics 1 provides an introduction to the principles required for the analysis of economic problems. The development of principles in the main fields of economics and the study of economic organization give the non-concentrator a background for the understanding of economic problems and are indispensable for the concentrator’s further work in advanced courses.

 

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 4, Folder “Economics, 1949-1950 (1 of 3)”.

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Course Enrollment

[Economics] 1 (formerly Economics Aa and Ab). Principles of Economics. (Full Co.) Professor Burbank, Dr. Campbell, and other Members of the Department.

(Fall) Total 441: 1 Graduate, 16 Seniors, 68 Juniors, 220 Sophomores, 110 Freshmen, 21 Radcliffe, 5 Special.
(Spring) Total 434: 1 Graduate, 18 Seniors, 72 Juniors, 240 Sophomores, 73 Freshmen, 26 Radcliffe, 4 Special.

 

Source: Harvard University. Annual Report of the President of Harvard College, 1949-50, p. 72.

 

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ECONOMICS I—CONCENTRATORS
1949-50
First Half

Sources:
Benham and Lutz Economics, American Edition (1941)
*Bowman and Bach Economic Analysis and Public Policy, Second Edition (1949)
Burns, Neal & Watson Modern Economics(1948)
Hart, A.G. Money, Debt, and Economic Activity(1948)
Merrill, Lynch, et al, How to Read a Financial Report
*Peach and Krause Basic Data of the American Economy, Revised Edition, (1949)
Peterson, S. Economics(1949)
Schumpeter, J. A. Capitalism, Socialism, and Democracy
Slichter, S. H. Modern Economic Society(1931)
Slichter, S. H. The American Economy(1948)
Williamson, H. F. The Growth of the American Economy

*To be purchased by students.

 

PART I. Introduction

  1. The Economic Problem
    Benham: Ch. 1, General Survey
  2. Economic Institutions and Economic Development
    Burns: Ch. 2, Change and Growth in the Economy
    Bowman & Bach: Ch. 6, Economic Analysis and Public Policy

PART II. National Income, Money, Banking and Price Levels

  1. National Income
    Burns: Ch. 4, National Income and National Output
    Peach & Krause: Section I, National Income
  2. Money, Banking and Price Levels
    Merrill, Lynch, et al.: How to Read A Financial Report
    Peach & Krause: Section 4, Money and Banking
    Peterson: Ch. 10, Exchange Media. Hand-to-Hand Money
    Bowman & Bach: Ch. 10, The Banking System, the Money Supply, and Investment; Ch. 11, The Government and the Money Supply
    R.B.: Banking and Monetary Statistics, Section 10, pp. 360-366
    National Debt Series: 2, Our National Debt and the Banks; 3, Our National Debt and Interest Rates; 6, Our National Debt and Life Insurance
    Hart: Ch. 10, Inflation and Deflation

PART III. Role of Markets in the Allocation of Resources and the Determination of Relative Prices

  1. Markets—An Introduction to the Problems of Production, Distribution, Exchange and Consumption
    Bowman & Bach: Ch. 2, Income and Consumption; Ch. 3, The Economic System—A Summary View; Ch. 4, Private Enterprise, Profits, and the Price System; Ch. 5, Business Enterprise in the Modern Economy—omit appendix
  2. Price Determination and Resource Allocation
    Bowman & Bach: Book III, Production, Individual Prices, and the Allocation of Resources
    Williamson: Ch. 25, The Location of Economic Activity
    Benham: Ch. 2, Markets, pp. 38-46
    Slichter: Ch. 10, Speculative Production, pp. 215-221
  3. Public Control of Markets
    Bowman & Bach: Ch. 33, Government Policy and Business Practice
    Schumpeter: Ch. 8, Monopolistic Practices
    Peterson: Ch. 23, Market Control Policies in the United States, pp. 618-631
    Peach & Krause: Section 9, Agriculture
  4. The Productive Performance of the American Economy
    Slichter: Ch. 1, The American Economy; Ch. 6, How Good is the American Economy
    Peach & Krause: Section 2, Population and the Working Force in the United States
    Peach & Krause: Section 3, National Resources

 

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Lecture Schedules and Reading Lists, 1942-1970”, Subfolder “49-55”.

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ECONOMICS I—NON-CONCENTRATORS
1949-50
First Half

Sources:
Arnold, T. The Bottlenecks of Business(1940)
Benham and Lutz Economics, American Edition (1941)
Bowman and Bach Economic Analysis and Public Policy, Second Edition (1949)
*Federal Reserve System Federal Reserve Charts on Bank Credit, Money Rates and Business(Latest edition)
Hart, A.G. Money, Debt, and Economic Activity(1948)
Johnson, E. A. J. Some Origins of the Modern Economic World
Merrill, Lynch, et al., How to Read a Financial Report
*Peterson, S. Economics(1949)
Slichter, S. H. Modern Economic Society(1931)
*Slichter, S. H. The American Economy(1948)
Williamson, H. F. The Growth of the American Economy
*Wright, D. M. Democracy and Progress

*To be purchased by students.

 

PART I. Introduction

  1. The Economic Problem
    Benham: Ch. 1, General Survey
  2. Economic Institutions and Economic Development—An Historical Approach
    Johnson: Ch. 2, The Late-Medieval Background; Ch. 3, The Emergence of Capitalism; Ch. 4, The Beginnings of Scientific Technology
    Williamson: Ch. 3, The Organization of Production During the Colonial Period
    Bowman & Bach: Ch. 6, Economic Analysis and Public Policy

PART II. The Role of Markets in the Allocation of Resources and the Determination of Relative Prices

  1. A Comprehensive View of the Market System
    Peterson: Ch. 2, The Occupational and Industrial Structure; Ch. 3, Production and Income—Individual and National; Ch. 4, Framework and Problems of the Economic System
  2. The Determinants of Productive Power and the Organization of Production Under Capitalism
    Peterson: Ch. 5, Natural and Human Resources; Ch. 6, Capitalistic Production; Ch. 7, The Organization of Production; Ch. 8, Business Enterprise and the Corporate Form
    Merrill, Lynch, et al.: How to Read a Financial Report
    Peterson: Ch. 9, Finance, pp. 207-214 and 221-236
    Williamson: Ch. 14, The Capital Markets, 1789-1860; Ch. 28, The Investment Market After the War Between the States
  3. Price Determination and Resource Allocation
    Peterson: Ch. 17, The Role of Prices; Ch. 18, Supply, Demand, and Market Price
    Benham: Ch. 2, Markets, pp. 38-46
    Slichter: Ch. 10, Speculative Production, pp. 215-221
    Peterson: Ch. 19, Nature and Role of Demand and its Elasticity; Ch. 20, Cost and the Expansion and Contraction of Industries
    Williamson: Ch. 25, The Location of Economic Activity
    Peterson: Ch. 21, Output from Existing Capacity
  4. Public Regulation of Markets
    Peterson: Ch. 22, Monopoly and the Public Interest
    Williamson: Ch. 30, Industrial Concentration and Government anti-Trust Policy
    Arnold: Ch. 2, How Restraints of Trade Affect Your Standard of Living; Ch. 3, How Restraints of Trade Unbalance the National Budget; Ch. 7, Procedure under the Sherman Act; Ch. 8, The Clarification of Law; Appendix I
    Peterson: Ch. 23, Market Control Policies in the United States
    Wright: Ch. 8, The Problems of Competition
  5. The Production and Distribution of Wealth
    Slichter: Ch. 1, The American Economy; Ch. 6, How Good is the American Economy
    Wright: Ch. 7, Economic Goals and the Distribution of Wealth

PART III. Money, Banking, Price Levels and the National Income

  1. Money, Banking and Price Levels
    Peterson: Ch. 10, Exchange Media. Hand-to-Hand Money
    Bowman & Bach: Ch. 10, The Banking System, the Money Supply, and Investment; Ch. 11, The Government and the Money Supply
    R.B.: Banking and Monetary Statistics, Section 10, pp. 360-366
    National Debt Series: 2, Our National Debt and the Banks; 3, Our National Debt and Interest Rates; 6, Our National Debt and Life Insurance
    Hart: Ch. 10, Inflation and Deflation
  2. Mechanics of the International Monetary Exchange
    Benham: Ch. 26, Balance of Payments
    Hart: Ch. 15, The Foreign Exchange Market
    Benham: Ch. 27, Free Exchange Rate; Ch. 28, The Gold Standard

 

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Lecture Schedules and Reading Lists, 1942-1970”, Subfolder “49-55”.

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ECONOMICS I—CONCENTRATORS
1949-50
Second Half

Sources:
Benham and Lutz Economics, American Edition (1941)
*Bowman and Bach Economic Analysis and Public Policy,Second Edition (1949)
**Committee for Economic Development The Uses and Dangers of Direct Controls in Peacetime
**Economic Outlook Consumers, Workers Pay Cost of New Factories
Hart, A. G. Money, Debt, and Economic Activity(1948)
**International Bank for Reconstruction and Development Fourth Annual Report, 1948-49
**International Monetary Fund Annual Report, 1949
**Murray, P. The Steelworkers’ Case for Wages, Pensions and Social Insurance
*Peach and Krause Basic Data of the American EconomyRevised Edition (1949)
Peterson, S. Economics(1949)
Samuelson, P. Economics
Slichter, S. H. Basic Criteria Used in Wage Negotiations
**Slichter, S. H. Profits in a Laboristic Society
**Slichter, S. H. The Taft-Hartly Act
**Steel Industry Board Report to the President of the United States
**Voorhees, E. M. Statement before the Presidential Steel Board
Wright, D. M. Democracy and Progress

* To be purchased by students
**To be handed out in section meeting.

 

PART IV. The Distribution of Income

  1. Introduction
    Bowman & Bach: Ch. 28, Introduction to the Study of Income Distribution
  2. Personal Income Distribution
    Bowman & Bach: Ch. 29, Personal Income Distribution in the United States
    Wright: Ch. 7, Economic Goals and the Distribution of Wealth
  3. Determination of Returns to the Factors of Production
    Bowman & Bach: Ch. 30, Wage and Salary Income; Ch. 32, Property Income
  4. Labor Organization and Labor Markets
    Bowman & Bach: Ch. 31, The Economics of Labor Unionism
    Slichter: Basic Criteria Used in Wage Negotiations, pp. 7-31, and 36-40
    Bowman & Bach: Ch. 35, Government Policy and Labor, pp. 651-673
    Slichter, The Taft-Hartley Act
  5. The Wages, Pensions, Prices and Profits Controversy
    Economic Outlook: Consumers, Workers Pay Cost of New Factories
    Slichter: Profits in a Laboristic Society
    Murray, The Steelworkers’ Case for Wages, Pensions and Social Insurance, pp. 9-29
    Voorhees, Statement before the Presidential Steel Board
    Steel Industry Board, Report to the President of the United States, pp. 1-11

PART V. International Economic Problems

Benham: Ch. 25, The Theory of International Trade; Ch. 26, Balances of Payments
Peach & Krause: Section 5, International Trade and Finance
Hart: Ch. 15, The Foreign Exchange Market
Benham: Ch. 27, Free Exchange Rates; Ch. 28, The Gold Standard; Ch. 29, Exchange Control; Ch. 30, Import Duties and Quotas
Hart: Ch. 18, International Monetary Cooperation
International Monetary Fund: Annual Report, 1949, pp. 1-46
International Bank for Reconstruction and Development: Fourth Annual Report, 1948-49, pp. 7-37

PART VI. Public Finance and the Economic Problem

Peach & Krause: Section 6, Government Expenditures, Tax Collections, Public and Private Debt
Bowman & Bach: Ch. 36, Introduction to the Public Economy; Ch. 37, Public Expenditures; Ch. 38, Public Revenues—Taxation; Ch. 39, Taxation (Continued)
Peterson: Ch. 30, Public Policy and the Distribution of Income

PART VII. The Nature of Economic Fluctuations and Policies Directed Toward Their Control

Samuelson: Ch. 12, Saving and Investment
Peach & Krause, Review Section 1, National Income
Hart: Review Ch. 10, Inflation and Deflation
Bowman & Bach: Ch. 13, The Rate of Economic Growth; Ch. 14, Economic Fluctuations
Peach & Krause: Section 7, Price Levels and Business Fluctuations
Wright: Ch. 6, Progress and Instability
Bowman & Bach: Ch. 40, Monetary Policy and Economic Stabilization; Ch. 41, Fiscal Policy and Economic Stabilization; Ch. 42, Antimonopoly Measures, Wage-Price Policy, and Direct Controls
C.E.D.: The Uses and Dangers of Direct Controls in Peacetime

 

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Lecture Schedules and Reading Lists, 1942-1970”, Subfolder “49-55”.

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ECONOMICS I—NON-CONCENTRATORS
1949-50
Second Half

Sources:
Benham and Lutz Economics, American Edition (1941)
Bowman and Bach Economic Analysis and Public Policy,Second Edition (1949)
**Economic Outlook Consumers, Workers Pay Cost of New Factories
Hart, A. G. Money, Debt, and Economic Activity(1948)
**International Bank for Reconstruction and Development Fourth Annual Report, 1948-49
**International Monetary Fund Annual Report, 1949
Jewkes, J. Ordeal by Planning(1948)
*Peterson, S. Economics(1949)
*Schumpeter, J. A. Capitalism, Socialism and Democracy(1947)
*Slichter, S. H. The American Economy(1948)
Slichter, S. H. Basic Criteria Used in Wage Negotiations
**Slichter, S. H. Profits in a Laboristic Society
Sweezy, P. M. Socialism
*Wright, D. M. Democracy and Progress

* To be purchased by students
**To be handed out in section meeting.

 

PART IV. The Distribution of Income

  1. Personal Income Distribution
    Peterson: Ch. 24, Inequality—Extent and Significance; Ch. 25, Inequality in the Return from Labor
  2. Determination of Returns to the Factors of Production
    Peterson: Ch. 26, Productivity and Income; Ch. 28, The Basis of Property Incomes; Ch. 29, Profits, Interest, and Wealth
  3. Labor Organization and Labor Markets
    Bowman & Bach: Ch. 31, The Economics of Labor Unionism, pp. 492-501
    Peterson: Ch. 27, Wage-raising Policies and Practices
    Slichter: Basic Criteria Used in Wage Negotiations, pp. 7-31, and 36-40
    Bowman & Bach: Ch. 35, Government Policy and Labor, pp. 651-681
    Slichter: Ch. 2, Co-operation or Conflict in American Industry
  4. The Wages, Prices and Profits Controversy
    Economic Outlook: Consumers, Workers Pay Cost of New Factories
    Slichter: Profits in a Laboristic Society

PART V. International Economic Problems

Benham: Ch. 25, The Theory of International Trade; Review Chs. 26, 27, 28
Hart: Review, Ch. 15
Benham: Ch. 29, Exchange Control; Ch. 30, Import Duties and Quotas
Hart: Ch. 18, International Monetary Cooperation
International Monetary Fund: Annual Report, 1949, pp. 1-46
International Bank for Reconstruction and Development: Fourth Annual Report, 1948-49, pp. 7-37

PART VI. Public Finance and the Economic Problem

Bowman & Bach: Ch. 36, Introduction to the Public Economy; Ch. 37, Public Expenditures; Ch. 38, Public Revenues—Taxation; Ch. 39, Taxation (Continued)
Peterson: Ch. 30, Public Policy and the Distribution of Income

PART VII. The Nature of Economic Fluctuations and Policies Directed Toward Their Control

Peterson: Ch. 14, Total Demand and the Depression Problem; Ch. 15, Cyclical Fluctuations
Wright: Ch. 6, Progress and Instability
Slichter: Ch. 3, The Problem of Economic Stability
Wright: Ch. 11, Three Plans

PART VII. The Prospects for Economic Progress under Capitalism and Other Systems

Schumpeter: Part II, Can Capitalism Survive
Wright: Ch. 1, Science, Democracy, and Capitalism; Ch.2, The Moral Dilemma of Progress; Ch. 3, The Meaning and the Method of Democratic Progress; Ch.4, Political Democracy and the Alternatives to Competition
Schumpeter: Part III, Can Socialism Work?
Sweezy: Ch. 10, Can Socialism Provide Incentives to Work and to Efficiency?; Ch. 12, Are Socialism and Freedom Compatible?
Jewkes: Ch. 1, The Spread of Fashion; Ch.2, Is the Business Man Obsolete; Ch. 5, Confusion Among the Planners; Ch. 6, Planners as a Species; Ch. 7, Planning as a Scientific Method; Ch. 8, Planning and Prosperity; Ch. 9, Planning and Economic Stability; Ch. 10, Planning and Freedom

 

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Lecture Schedules and Reading Lists, 1942-1970”, Subfolder “49-55”.

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1949-50
HARVARD UNIVERSITY
ECONOMICS I
Non-Concentrators

Mid-Year Examination
January, 1950

I
(One hour and a half)
Answer both questions

  1. A member of the Board of Governors of the Federal Reserve System has recently advised Congress that the policy of the Treasury has made it impossible for the Federal Reserve authorities to use their powers as controllers of the country’s money supply. Explain carefully why Treasury and Federal Reserve policies must be coordinated and in what ways they are likely to come in to conflict. Illustrate by reference to the national debt and other problems which arose in the war and the postwar periods.
  2. The problem of the allocation of scarce resources among a multitude of possible uses is one which is largely solved automatically in our economy.
    Explain how this problem is solved. Give careful attention to the role of and inter-relationships among each of the following: consumer decisions, producer decisions and markets.

II
(One hour and a half)
Answer any THREE questions

  1. The monetary control authorities generally attempt to control the level of prices and the level of income through control of the supply of money. Using the equation of exchange as an analytic framework, analyze how a policy which changes the supply of money might work out.
  2. Answer either (a) or (b) of the following
    1. Distinguish “rate level” from “rate structure.” Discuss the criteria relied on by regulatory commissions in determining each for a public utility, noting the major problems involved.
    2. What are the major economic arguments for and against monopoly? In the light of these arguments what elements do you think should be contained in any balanced government policy toward monopoly?
  3.      a. Explain the relationship between gross and net national product; between national income and aggregate personal income.
    1. Discuss a purpose for which each one of the above aggregates can be used.
    2. In the light of the above explanation and additional pertinent facts comment on the following statement: “A comparison of national income at the depth of a depression with that during a period of prosperity overstates the impact of the depression on the consuming public.”
  4. Answer TWO of the following:
    1. Explain how speculative markets control the rate of use of periodically produced goods.
    2. Restate the Malthusian thesis (law of population) using the principle of diminishing returns.
    3. Distinguish the short-run stabilization and long-run adjustment of the market for farm products. Consider both the objectives and the implied policies.
    4. Discuss the respective roles of technological change and savings and capital accumulation in the emergence of modern economic society.

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Economics 1, Exams 1939-1962”.

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1949-50
HARVARD UNIVERSITY
ECONOMICS I
Concentrators

Mid-Year Examination
January, 1950

 

I
(One hour and a half)
Answer both questions

  1. A member of the Board of Governors of the Federal Reserve System has recently advised Congress that the policy of the Treasury has made it impossible for the Federal Reserve authorities to use their powers as controllers of the country’s money supply. Explain carefully why Treasury and Federal Reserve policies must be coordinated and in what ways they are likely to come in to conflict. Illustrate by reference to the national debt and other problems which arose in the war and the postwar periods.
  2. Consumers’ preferences change, thus increasing the demand for a certain product which is produced under conditions of pure competition. Trace in precise fashion the results of this increase in demand on the output of the individual firms and of the industry, and on the price of the product:
    1. in the short run,
    2. in the long run.

 

II
(One hour and a half)
Answer any THREEquestions

  1. The monetary control authorities generally attempt to control the level of prices and the level of income through control of the supply of money. Using the equation of exchange as an analytic framework, analyze how a policy which changes the supply of money might work out.
  2. What are the major economic arguments for and against monopoly? In the light of these arguments what elements do you think should be contained in any balanced government policy toward monopoly?
  3. Answer TWO of the following:
    1. Discuss three important factors determining the location of economic activity.
    2. “When there is oligopoly, even without collusive agreements, price competition will tend to be ‘nonaggressive’, and price will usually be higher than otherwise.” Discuss.
    3. “Competition on a nonprice basis has become more and more important in recent years.” Discuss the effects of this trend on the allocation of resources.
    4. Discuss the process of hedging in a commodity market and its significance to the non-speculative businessman.
  4. Define Gross National Output (Product), National Income, and Income Payments (Personal Income).
    1. What is the general use of these concepts and how might each one be used specifically?
    2. How is Gross national Output related to Aggregate Demand or Expenditure?
    3. How will the relation between National Income and income Payments vary in prosperity and depression?
    4. Can we place great reliance on these concepts as measures of economic welfare?

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Economics 1, Exams 1939-1962”.

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1949-50
HARVARD UNIVERSITY
ECONOMICS I
Non-Concentrators

Final Examination
June, 1950

I
(One hour and a half)
Answer both questions

  1. Investment is often said to play a “strategic role” in the business cycle. What is meant by this statement? What are its implications for counter-cyclical policy?
  2. “Remuneration for labor services and a share in the social dividend are the only sources of personal income under socialism. Therefore, the socialist planners can ignore rent, interest, and profits even though they are fundamental to the functioning of a capitalist system.” Discuss.

II
(One hour and a half)
Answer both questions

  1. Without stating general conclusions as to the merits of either side, explain the basic issues involved in the dispute between labor and industry over wages, prices and profits.
  2. Discuss the elements to be considered in the establishment of a model tax system for the United States at the present level of expenditures. (This includes all levels of Government.)

III
(Thirty minutes)
Answer one question

  1. An adverse balance of payments can be corrected by (1) changes in exchange rates, (2) changes in prices and incomes, or (3) exchange and import controls.
    1. Discuss briefly how each of the above three methods may be used to correct a country’s adverse balance of payments.
    2. Discuss the extent to which the member countries of the International Monetary Fund may make use of the above three methods.
  2. Comment on the following statement: “The object of American tariff policy should be to impose sufficient duty on goods of every kind to equalize the cost of production at home and abroad.”

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Economics 1, Exams 1939-1962”.

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1949-50
HARVARD UNIVERSITY
ECONOMICS I
Concentrators

Final Examination
June, 1950

I
(One hour and a half)
Answer both questions

  1. Investment is often said to play a “strategic role” in the business cycle. What is meant by this statement? What are its implications for counter-cyclical policy?
  2. The establishment of product prices and of returns to factors of production are two sides of the same economic process.
    1. Analyze the forces of supply and demand which determine the return to a factor of production.
    2. Explain (in terms of producer and consumer decisions) how these returns determine and are determined by the prices of products.

II
(One hour and a half)
Answer both questions

  1. Without stating general conclusions as to the merits of either side, explain the basic issues involved in the dispute between labor and industry over wages, prices and profits.
  2. Discuss the elements to be considered in the establishment of a model tax system for the United States at the present level of expenditures. (This includes all levels of Government.)

III
(Thirty minutes)
Answer one question

  1. An adverse balance of payments can be corrected by (1) changes in exchange rates, (2) changes in prices and incomes, or (3) exchange and import controls.
    1. Discuss briefly how each of the above three methods may be used to correct a country’s adverse balance of payments.
    2. Discuss the extent to which the member countries of the International Monetary Fund may make use of the above three methods.
  2. Comment on the following statement: “The object of American tariff policy should be to impose sufficient duty on goods of every kind to equalize the cost of production at home and abroad.”

Source:  Harvard University Archives. Department of Economics. Course Reading lists, syllabi, and exams 1913-1992, Box 2, Folder “Economics 1, Exams 1939-1962”.

Image Source:  H. H. Burbank in the Harvard Class Album 1947.